Virgin Atlantic’s Hub Nears Full Capacity.
Virgin Atlantic started operations in 1984 with the concept of serving strong demand
destinations. The maiden flight from London Gatwick to Newark Liberty International Airport
took place on 22 June 1984 (Nandy, 2015). Since then the airline expanded but largely remained
as a single city hub airline. That hub is now in England’s capital, London’s Heathrow airport,
(IATA’s code LHR) (see route map in annex 1). As a long-haul airline Virgin Atlantic is highly
dependent on an airport that can attract both business and holiday destination travellers. LHR
traffic just like Virgin Atlantic has experienced a continued growth over the last decades (see
annex 2 graph.) The airport operates
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LHR is without a doubt an important strategic airport for any
international carrier. ‘Almost 75m passengers travelled through Heathrow airport in 2015, setting
a new record for the UK’s biggest and most congested airport’ (Powley, 2016, online). Many of
those passengers went to China with a 14% increase in 2015. The Middle East also saw
increased growth with a 6% increase while Latin America grew by 6 per cent (Powley, 2016).
Though these record numbers show a continued progression plans for increasing capacity have
been delayed attending to ‘‘further consideration on environmental impacts’’ (Powley, 2016,
online). Heathrow is operating at near-full capacity on its two runways (Powley, 2016). But the
rise in passenger numbers was made possible by airlines’ increased use of large capacity aircraft
such the Airbus A380 superjumbo (which Virgin Airlines is also contemplating adding to their
fleet). For example, by the end of 2015, there were more than 20 daily A380 flights into
Heathrow operated by eight carriers (Powley, 2016).
VIRGIN ATLANTC: LEVERAGES VALUE OVER LONDON BASE.
5
Conclusion
While the use of big aircraft able to carry from over 500 passengers to excess of 800
In 1978, deregulation removed government control over fares and domestic routes. A slew of new entrants entered the market, but within 10 years, all but one airline (America West), had failed and ceased to exist. With long-term growth estimates of 4 percent for air travel, it's attractive for new firms to service the demand. It was as simple as having enough capital to lease a plane and passengers willing to pay for a seat on the plane. In recent news, the story about an 18-yr British...
International passenger traffic to and from Australia in December 2103 was carried by forty-eight international airlines that were in operation in that month, offering seats to over three million passengers. The number of realised passengers represents a growth of 7.8% over the number of booked seats in December 2012 (BITRE, 2014). Passenger utilisation however is on the decline, with December 2013 passenger utilisation being 80.2%, a fall from 82.4% at the same time the previous year (BITRE, 2014).
According to the International Air Transport Association, 2001 was only the second year in the history of civil aviation in which international traffic declined. Overall, it is believed that the IATA membership of airlines collectively lost more than US$12 billion during this time (Dixon, 2002).
Use of a single-type aircraft fleet. The A320 Airbus has an increased seating capacity of 30 seats (24 after additional seating reconfigurations), is cheaper to maintain, fuel efficient and reduces training costs, relative to other aircraft models used in the industry.
Through a vast worldwide route system Delta has flown over 117 million passengers, more than any other airline in the world. Delta mainline, domestic and international service, Delta Express, Delta Shuttle, Delta Connection®, Delta Sky Team and Worldwide Partners operate 6,400 flights each day to over 450 cities in 98 countries. Not only is Delta a beast in the market it wields its power quite intelligently. Along with this momentous market share, Delta has enormous control over some of the nations key gateways. Delta controls 72 percent of the air traffic at Salt Lake Utah.
Recently Qantas has partnered up with Emirates in an effort to channel Europe-bound travellers through Dubai International Airport in a mutually beneficial arrangement, an example of business-to-business geographic segmentation marketing.... ... middle of paper ... ... Indirect Taxes on International Aviation*.
Political · The expansion of the European Union (EU)· BAA’s proposed Stanstead expansion· CAA’s new regulations on airport charges
number topped 650 million. All other factors being equal this would result in more passengers
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