Virgin Atlantic

1 slide:

The airline industry is and remains a large and growing sector. It facilitates economic growth, world trade, international investment and is a vital component of the tourism industry. We decided to choose for analyzing one of the most famous airlines in the whole world. It is interesting for investigating because it is the second big British airline and it is managed by no less famous entrepreneur Richard Branson.

3 slide:

Actually it was founded as British Atlantic Airways 33 years ago by two people: lawyer Randolph Fields and Alan Hellary, a former chief pilot for Laker Airways. Financial opportunities made Richard Branson as third co-owner and later the main.They focused on average and long distances.  Soon after changing the name to Virgin Atlantic Airways, Fields sold his shares in the company after disagreements with Sir Richard Branson over the management of the company. 

Due to the success of Branson’s company Virgin Records they took leasing used aircraft for the beginning. Everything was ready and the maiden flight from London Gatwick to Newark Liberty International Airport took place on 22 June 1984.

4 slide:

Virgin Atlantic became profitable within the first 12 months. The addition advantage was that the airline appeared in early summer, while the peak season for travel as time lasts from June to September. And gradually the airline continued to buy aircrafts and open new routes from Gatwick to New York, Tokyo, Los Angeles, Boston, Orlando and etc.

On the slide: So, take an attention please to this table. Upper part shows financial variables like revenue, income and loss.  As you can see the company had run at a loss for three years and just in 2014 again it shows profit. New contracts with airlines and new CEO manager help company to overcome the crisis.

The low columns show the passengers flow and we can see parallel perspective and that the flow decreased within this 3 years.

Innovative approach, what does it mean? So, when the company was launching Richard Branson understood that in order to succeed, their company should be distinguished from others and became to offer to its passenger unusual services such as luxury escort, entertainment, restaurant level food, free nail services and other specific things during the flight. This treatment to customers made company popular.