Virgin Atlantic retires 747 fleet, closes Gatwick base, to lose more than 3,000 jobs in business reshaping
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
The coronavirus crisis will have a lasting effect on the aviation industry — and Virgin Atlantic isn’t exempt from that. On Tuesday, the carrier announced a slew of changes it will make in order to “reshape and resize” its business to survive the coronavirus crisis — and thrive in its aftermath.
In a series of moves that will help the airline to reduce costs and preserve cash, most notably, Virgin Atlantic has accelerated the retirement of its ageing Boeing 747 fleet. Effective immediately, Virgin Atlantic will no longer operate its seven 747s. The superjumbo aircraft in Virgin’s fleet were originally set to retire in 2021.
Sign up for the free daily TPG newsletter for more airline news
As planned, Virgin will keep its four A330-200 aircraft in operation before retiring them in 2022. Once the 747s and A330-200s are retired, Virgin’s fleet will be comprised of more fuel-efficient twin-engine aircraft, such as its newest Airbus A350s, Boeing 787s and A330-300s.
Related: Where is Virgin Atlantic parking its planes during the coronavirus outbreak?
In addition, the carrier is moving all of its London operations to fly exclusively out of London Heathrow. The move will see its London Gatwick base closed for the time being. However, the carrier is retaining its slot portfolio at Gatwick, allowing it to return when customer demand does.
In the press release, Virgin said that it expects the coronavirus recovery to take up to three years to reach pre-crisis levels. As such, the airline said that it’s reducing its workforce by 3,150 employees. A company-wide consultation period of 45 days begins Tuesday.
“We have weathered many storms since our first flight 36 years ago, but none has been as devastating as Covid-19 and the associated loss of life and livelihood for so many”, Virgin Atlantic CEO Shai Weiss said in a statement. “It is crucial that we return to profitability in 2021. This will mean taking steps to reshape and resize Virgin Atlantic in line with demand, while always keeping our people and customers at the heart of all we do”.
Related: Richard Branson says Virgin Atlantic will collapse without government support
During the coronavirus crisis, Virgin started operating cargo-only flights, which has kept it operating. In the aftermath of coronavirus, Virgin will continue its cargo operations as Virgin Atlantic Cargo.
Additionally, the airline is simplifying its different businesses by rebranding Virgin Holidays as Virgin Atlantic Holidays. In 2020, 15% of the Virgin Atlantic Holidays real estate will close.
This is a developing story…
Featured photo by Steve Parsons/PA Images via Getty Images.
Sign-up Successful!
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,600
CARD HIGHLIGHTS: 3X points on dining and 2x points on travel, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®.
- Enjoy benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining and 2x on all other travel purchases, plus more.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.