Thursday, October 30, 2014

Virgin Atlantic withdrawal from Tokyo

Recently, I was notified that Virgin Atlantic Airline was going to quit Tokyo-London operation.

Buying Business Travel: Virgin Atlantic to cancel Tokyo and Mumbai services

Japan Today: Virgin Atlantic to end service to Japan

Virgin Atlantic is a British airline company. Its cheerful services attract many people. As I wrote, it was eager to promote its service with humor.

My past entry: Ms. Virgin Atlantic in Air Asia

It possesses several flights between Tokyo and London. Compared to other companies offering direct flight between the two cities, such as JAL and ANA, Virgin Atlantic is less expensive. So, it would be a powerful alternative. Actually, I was near to choose it to get London this time.

However, Virgin Atlantic had to decide to abandon Tokyo. According to the media, there are several factors to exacerbate its profit: increased fuel fee, raising of the consumption tax, and devastatingly weak Yen.

It is so sorry for me to lose an opportunity to try Virgin Atlantic. I have never used it yet.

On the other hand, Virgin Atlantic introduced new Boeing 787-9 Dreamliner on Boston-London route. These airplanes were planned to be administered on Tokyo-London in the next Spring.

USA Today: Virgin Atlantic launches first Dreamliner route

Nowadays, Low Cost Carriers are also struggling in capital management. The other day, they began to infiltrate the posts of traditional airlines with extreme competitive prices. The superiority of their cost-effectiveness is decreasing in accordance with obsolescence of their business model. "Select and Focus" strategies are required for all companies.

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