From TravelMole.com:
A major US carrier will fail – Virgin boss predicts.
A major US carrier will fall victim to the recession, Virgin Atlantic founder Sir Richard Branson has warned.
He described the current year as “the worst in the history of aviation” due to the economic downturn and a sudden rise in oil prices (see previous TravelMole story).
He admitted that Virgin Atlantic would not repeat last year’s group pre-tax profit performance of more than £60 million in 2009, saying the business travel sector was particularly difficult.
“We are having to batten down the hatches but relatively we will do better than most,” Sir Richard told TravelMole in advance of the airline’s 25th anniversary on June 22.
He said he remained “absolutely confident” that Virgin Atlantic would be around for its 50th anniversary provided competition authorities protect it from potentially damaging actions such as the proposed effective merger of British Airways’ and American Airlines’ transatlantic operations.
But Sir Richard described some big US airlines as being “weak” and predicted: “Within 12 months, I would not be surprised if a big American carrier didn’t go”.
He added: “Oil prices have suddenly doubled – that’s a massive burden on the industry. In a recession you would normally have low oil prices; that is not the case this time.”
The weakening of the value of the dollar will also add extra pressure on airlines in the US, Sir Richard said.
He described the quality of US domestic airlines as being “extremely poor” and saw this an opportunity for offshoot Virgin America to become a “major force”.
by Phil Davies in Toyko
Any ideas/thoughts on which major airline is or would-be likely to collapse in the near future?
Discuss.
By: cloud_9 - 5th June 2009 at 14:10
Its just amazing how journalists talk things up – or down…
In any case, we have to recognise that its in SRB’s interest to talk down US airlines, just like Scumbag O’Riley talks down European airlines – SRB stands to benefit from anyone he manages to scare away from US airlines and onto his own branded Virgin Atlantic and Virgin America.
Andy
I actually agree with you Andy.
There was a potential rumor that went around that it may have been Virgin America that was going to go under. Ok, so they are not considered a ‘major’ carrier carrier, but by SRB saying what he said it has helped to deflect some of the attention away from the state of ‘his’ airline (even though he only owns 25% of it!).
By: Skymonster - 4th June 2009 at 10:14
Its just amazing how journalists talk things up – or down…
A major US carrier will fall victim to the recession, Virgin Atlantic founder Sir Richard Branson has warned.
Huh??? The above seems like a journo paraphrasing SRB, because he’s then quoted:
But Sir Richard described some big US airlines as being “weak” and predicted: “Within 12 months, I would not be surprised if a big American carrier didn’t go”.
Seems like he didn’t say a US airline WILL go bust at all – all he said was that he wouldn’t be surprised if one did go bust.
In any case, we have to recognise that its in SRB’s interest to talk down US airlines, just like Scumbag O’Riley talks down European airlines – SRB stands to benefit from anyone he manages to scare away from US airlines and onto his own branded Virgin Atlantic and Virgin America.
Andy
By: cath - 3rd June 2009 at 21:17
Are you flying from LHR on Continental?
Afraid not, it’s Glasgow. Thanks for the offer though 😀
Glad they seem to be fairly safe, they are the only airline flying direct to the US year round from Glasgow!
By: cloud_9 - 3rd June 2009 at 20:54
Best not be Continental
I don’t think it will be Continental seeing as they will have the anti-trust immunity agreement with United and are joining Star Alliance in October.
My guess would probably be US Airways…
…I’ve just booked with them 😮
Are you flying from LHR on Continental?
If so, PM me as I work for the company that handles them, can get you (and whoever you are travelling with, if anyone!) some decent seats!
By: cath - 3rd June 2009 at 17:59
Best not be Continental, I’ve just booked with them 😮
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June 3, 2009 at 4:41 pm