VIRGIN ATLANTIC Ltd., the airline controlled by UK entrepreneur Richard Branson, on Friday announced plans to fly to Montego Bay in 2006.The company added routes to Mumbai, Havana and Nassau in 2005 and aims to double in size by the end of the decade. But its published results said it faced over-capacity in its key North Atlantic market and fuel costs were a challenge.
"In a challenging year when many leading players in the airline industry continued to struggle to survive, I am very pleased and proud that Virgin Atlantic has recorded healthy increases in both turnover and profit," Branson said in a statement issued in London. The company posted an annual pre-tax profit of 68 million pounds (J$7.6 billion).
"Despite the burden of fuel rises we remained committed to innovation, investment and growth," he said. "That strategy will continue with planned annual growth of over 10 per cent through expanding our fleet, adding new routes like Mumbai, Cuba and the Bahamas this year, together with Dubai and Jamaica in 2006 and continuing to take market share from our rivals in the growing business travel market with our award winning Upper Class Suite."
Adding Montego Bay and Dubai in the middle east will bring the airline's total number of destinations to 28.
During the financial year Virgin Atlantic added three new Airbus A340-600 aircraft bringing the total fleet to 31, at an average age of 5 years, 6 months. In August 2004, the airline announced an order for up to 26 more A340-600's, worth US$5.5 billion.
FUEL SURCHARGES
"Rising oil prices undid some of our good work and regrettably we were left with no option but to introduce fuel surcharges from May 2004, although these only recovered around one third of the £60 million extra costs we faced over the year," he said.
Virgin Atlantic, part of Branson's Virgin empire which stretches from planes and trains to vodka and personal finance, saw its passenger numbers up at 4.4 million from 3.4 million. Branson owns 51 per cent of Virgin Atlantic, with the remaining 49 per cent owned by Singapore Airlines Ltd .
"Finally, one of our most exciting challenges ever made great progress. I was honoured to sign an agreement on behalf of Virgin Atlantic with the Nigerian Government in September 2004 to establish a new airline for Nigeria to be called Virgin Nigeria Airways," he said. "Virgin Nigeria is majority owned by Nigerian institutional investors with Virgin Atlantic owning 49 per cent. Virgin Atlantic will be the strategic partner, providing technical expertise to ensure it operates to the highest international standards. The first flight should operate soon on what we hope will be a historic day for Nigerian aviation."
