Michael Burke, General Manager - India, Virgin Atlantic Airways has studied from the University of Plymouth in the U.K, acts as the Chairperson of the Aviation Working Group within the European Union Chamber of Commerce in China (EUCCC) and also sits on the British Chamber of Commerce Executive Committee. Burke before his current role served as the Country Manager, Virgin Atlantic in China. He has been with the airline for nearly 13 years now. His breadth of experience in the organisation adds an important dimension to Virgin Atlantic operations in India. In his current role, Burke is responsible for the management and operations of Virgin Atlantic Airways in India. He also focuses on strategic corporate initiatives and business development for the brand, thus strengthening the airline’s position in the country with the support of his team and partners.
Virgin Atlantic Airways is Britain’s second largest long haul airline and currently operates 7 flights between India and the UK, with daily services to London from Delhi. Since its launch into the Indian subcontinent in June 2000, Virgin Atlantic has established itself as a competitive industry player within Indian aviation space that brings unique elements of international travel and continues to renew its commitment to India. On its long haul routes Virgin Atlantic operates a three class service: Upper Class (the airline’s first class) Premium Economy (Equivalent to business class) and Economy. Virgin Atlantic launched the Upper Class Suite in November 2003 – a product which has won some of the most design awards in the industry and is now onboard all aircraft in the airlines fleet. It operates long haul services from Heathrow to New York (Newark and JFK), Los Angeles, San Francisco, Washington, Boston, Miami, Tokyo, Hong Kong, Johannesburg, Cape Town, Shanghai, Delhi, Lagos, Sydney, Dubai, Chicago, Nairobi & Mauritius. Virgin also operates services from Gatwick to Orlando, Barbados, St Lucia, Antigua, Las Vegas, Grenada, Tobago, Cuba and Montego Bay & Kingston in Jamaica. It also operates a service from Manchester to Orlando, Barbados and St Lucia.
Replying to Yash Ved of India Infoline, Michael Burke says “We are very excited about our 10th year of flying in India. We look forward to the medium term prospects of Virgin Atlantic in India”
Brief us about your fleet expansion plans?
We have announced a US$2.1bn order for buying 10 new Airbus A330-300 aircrafts which will be delivered from early 2011. Five of the aircrafts will arrive in 2011 and five in 2012. The new aircraft, which can seat up to 270 passengers, will operate on many of Virgin Atlantic’s existing business and leisure routes worldwide. They will also assist future growth, helping Virgin Atlantic to fly to new destinations from London such as Beijing, Cancun and Vancouver.
The more fuel-efficient A330-300s, which deliver lower maintenance costs as well as substantial cargo capacity, will integrate with Virgin Atlantic’s existing fleet of 38 aircraft and help the airline expand before the arrival of 15 Boeing 787-9 Dreamliners, from 2013.
What is the present network of Virgin Atlantic? Are you planning to increase its network in future?
At present, we are flying Delhi-London, 7 days a week. We are in a phase of consolidation, considering the global economic environment we face. We feel this strategy will enable us to quickly move out of this recessionary period in much better shape than the majority of our competitors. This will also allow us to take advantage of the opportunities such a downturn inevitably presents to the nimble, opportunistic and well run businesses of the world. We are very excited about the medium term prospects for Virgin Atlantic in India. Once the downturn recedes we will definitely look at other sectors in India.
How has the response been for Virgin Atlantic in India?
We continue to be one of the market share leaders in Delhi on the London route. We are known for our exceptional flair as we provide the best value for money and customer service. We will be completing 10 years in India in 2010 and look forward to another decade of flying in India.
Tell us something about the Virgin Atlantic’s Frequent Flyer Programme? How is it beneficial for the passengers?
We have a generous frequent flyer program (FFP), called Flying Club that rewards our loyal customers from the very first flight, also in Economy. I think this is indicative of the difference in how we treat our customers compared to other airlines.
We have a very healthy mix of frequent flyers from all walks of life. They range from the who’s who of the corporate world, celebrities and dignitaries. The frequent flyer programme is very important to us and we hope to keep growing ours consistently.
What steps are you taking to offset these additional costs to help protect your bottom-line for the year?
The key to cost-cutting is always to take out the things which will not negatively impact revenue – otherwise it’s a false economy ‘saving’. After 9/11 we perhaps cut one or two of the little touches that make us special to customers out of our service delivery and we’ve learned from that mistake. We are only cutting back on costs where it is absolutely necessary and where prudent to ensure we are in good shape to capitalise on the opportunities as and when the world economy picks up.
You have codeshare agreements with a number of other carriers. Which other international routes are you considering operating on your own?
In India, at present we have a codeshare agreement with Jet Airways out of Mumbai. Passengers can fly to London on Jet Airways and thereon fly on Virgin Atlantic to destinations such as New York, San Francisco, Boston, Miami, etc.
We are always reviewing our network and keeping a close eye on opportunities for growth. With the 10 A330 aircraft coming into the fleet in the not too distant future, this provides an ideal opportunity to expand again after a period of consolidation. I would therefore hope and expect to see a focus on Asia and India in particular at that time, with a re-commencement of our Mumbai-London services as a priority.
Are you planning any new initiatives?
Virgin Atlantic has selected Rolls-Royce Trent 700 engines to power its new Airbus fleet of 10 A330-300s. The aircrafts are due for delivery from early 2011. The order, worth US$720mn, includes 10 sets of installed engines and three spare engines. We are constantly working to upgrade and better our product; our Premium Economy now has new and larger seats for more comfort. We have also renovated our clubhouse at the Gatwick Airport, London. The clubhouse is an example of how we strive to provide the best comforts to our passengers. Customer service will remain our priority and we will continue to approach it with our exceptional ‘virgin flair’.
Are both inbound and outbound (India) markets doing well?
It is the same for almost every airline in the market right now. Our problem is not the numbers of passengers; it is that the fares being paid are unsustainably low. Until this trend changes, which could happen most likely via a re-balancing of the oversupply of seats in each market, you are not going to see airlines profitable again any time soon.