Virgin Atlantic airline
Among the ruins of losses in the airline industry, Virgin Atlantic is one airline that stands tall. Be it in terms of the number of aircrafts or the diversity of the routes they service or the kind of service they offer to the customers. It wouldn’t be wrong to say that they are growing stronger. The future projections for the airline look bright. Just recently they announced much to the surprise of their competitors and the industry experts that their profits had doubled during the last one year. And it is expected to get better and better over the next few years.
A major initiative that Virgin Atlantic has started taken up and which is expected to serve them well in the coming years is that of spending money on hedging oil, which is expected to give their profits a healthy boost. The airline is considering an increase in the number of staff as a part of their expansion policy. Their current staff strength stands at around 8500 at present, which is what they are trying to increase in the coming years. Virgin Airline’s profits are majorly influenced by business travelers.
Plans are on to make sure that their present customers don’t move out to other airlines. A major initiative taken up by Richard Branson for Virgin Atlantic is to start using Bio-fuel for its aircrafts. A few test flights on Boeing 747s have already been successfully completed. This is definitely going to be taken up on a massive scale by Virgin Atlantic in a few years. They may start a trend that the industry could take up very soon. Besides, it also gives them the image of being an environment conscious airline in the minds of the people.
They are also relooking at their advertising strategy on a global level. The idea behind this is to make their advertising more effective. This becomes all the more important as the competition within the industry is getting more cut throat. Attracting the attention of the consumers is the way to go. The company also intends to increase their ad spend to about six percent of the turnover. It has operated at an ad spend of two or three percent for a long time, when the industry average has been five to seven percent.