Virgin Atlantic to add two U.S

Virgin Atlantic[VA.UL] to add two U.S. flights

LONDON, July 11 (Reuters) – Virgin Atlantic Airways Ltd said on Thursday it would add two daily services to the United States from London in response to a gradual improvement in demand for transatlantic air travel since the September 11 attacks.

The airline, which relies on the transatlantic market for 70 percent of its business, said it would reinstate a fifth daily service between London and New York from the end of October and introduce a second daily service to Washington from June 2003.

“Both of the new routes will be operated by an Airbus A340,” the airline said in a statement. The wide-body A340-600 is made by European aircraft maker Airbus SAS (EAD) (EAD) (BA).

The hijacked plane attacks on New York and Washington in September last year frightened many potential travellers from flying, sending the airline industry into a financial tailspin.

An industry source said in February that Airbus rescued the Virgin order for 10 A340-600 planes by arranging for the airline to get a loan from a third party to help finance the order.

British businessman Richard Branson’s Virgin Group owns 51 percent of Virgin Atlantic, with Singapore Airlines Ltd (SIAL) owning the remaining 49 percent.