However, the company seems to be rebounding with [...] No related posts. Related posts brought to you by Yet Another Related Posts Plugin.]]> Most if not all airline companies have suffered some major losses in the economic downturn of the past couple of years.  Virgin Atlantic is one that had its worst year ever during 2009, and reported losses of around £158 million for the twelve months up to February 2010.

However, the company seems to be rebounding with vigour, and Virgin now has a £10m advertising campaign in progress, to introduce their new “Upper Class” service geared chiefly to business travellers.  Virgin intends to keep the momentum going on an upsurge in leisure and business travel that took place in the March to May period this year; they reported an increase of 5% in business class travel.

The “Upper Class” incentives are pretty impressive.  They include a limo from your doorstep to the dedicated check-in area at the airport, and another one on arrival at your destination.  If you have to wait at the airport, there’s a top-notch business lounge with several business stations and laptop points, plus full restaurant and bar.  You can also get a massage, a manicure and a haircut, just to name a few of the available amenities.

On the airplane “Upper Class” offers fully reclining seats, lots of extra leg-room and a massage for your head if desired; again that’s only to name a few of the perks.  Virgin is plainly expecting to grab a major chunk of the business-traveller market, and they’re going about it full bore at this point.

The ad campaign will run throughout the fall season this year – statistically the busiest for business travellers.  The airline is competing with British Airways and Continental, amongst others, and Virgin aims to make the choice for passengers a foregone conclusion.

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Cathay Pacific brought the situation to the attention of [...] No related posts. Related posts brought to you by Yet Another Related Posts Plugin.]]> The Office of Fair Trading (OFT) recently issued a statement of objections regarding the conduct of Cathay Pacific and Virgin Atlantic airlines.  The charge is that both companies may have been guilty of breaking the laws against price fixing, specifically on flights between London and Hong Kong.

Cathay Pacific brought the situation to the attention of the OFT under the protection of the leniency policy, which basically says that the first company to report its participation in wrongdoing will probably suffer no penalties. The allegation is that employees of both companies shared information in order to coordinate the airlines’ pricing strategies – in other words, cartel activity.   According to the allegations, this practice has been going on for years.

The intent of the OFT is to insure that companies act independently in their pricing and other commercial strategies, so that fair market trade is established and no monopoly can fix prices or standards to the detriment of smaller competitors.

A spokesperson from Virgin Atlantic said that the airline’s practices have never been contrary to consumer interests, and that they will defend themselves with vigour against any such allegation.  Ali Nikpay, a senior director at OFT, said that no decision has been made at present.  Both companies will be given the opportunity to respond to any findings and present their arguments before any final decision is announced.

It has been noted that in a previous case involving Cathay Pacific and British Airways,

Cathay avoided penalties under the same leniency law, with British Airways receiving a fine totalling £270m.

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