The new chief executive of Virgin Airways Ltd. has allotted himself with time frame of around two years to reduce the costs and also restore the brand of Richard Branson towards profitability, that too without hampering or damaging the reputation and image of the brand which is widely recognized for doing things in a different manner.
On February 1st, Craig Kreeger who has been appointed as the chief executive officer of Virgin Atlantic Airways has plans to stop the capacity loading, staffing process and making maximum measures to benefits, in comparison to the Delta Air Lines Inc. along with maintenance of the innovative appeal of this UK based airline organization.
In an interview, Kreeger who is 53 years of age stated at Edinburgh that his primary focus will be to invest in things that add to the coolness and hipness of the experience of customers which has been the special appeal and definition for Virgin. He adds that they need to search out for ways in order to save money in other segments so that they can invest better and find ways to keep the best of customer experience afresh which makes Virgin different from other airlines.
In the fiscal year of 2012, the airlines of Virgin Atlantic lost almost 80.2 million pounds trying to attract passengers with various facilities such as in-flight massages, pickup and lounges that are designed and modeled like a golf resort or latest trendy hotels. In a public appearance of yesterday, the chief of this organization declared that they need to return back to profit within the next 12 months within the year of 2015, and this will require for great effort to be achieved.
It is reported that Kreeger who joined Virgin in the month of February was previously associated with the AMR Corp American Airlines. His main focus after being the CEO is the build the foundation rightly with strategies such as avoidance of added capacity, growth in revenue, domestic services and more.
Virgin airlines have been best known for its flights covering between New York and Caribbean where the organization has added three routes to avail from the Northern Britain to London Heathrow in order to restore the loss in traffic with merge between partners BMI and British Airways in the previous year. Reports state that it is under the Delta alliance that the companies of airlines are planning to merge the costs and revenue to indulge in a coordination of schedule, which comes after Virgin and pays $360 million making for a stake for 49 percent which is associated with the Singapore Airlines Ltd.
Kreeger says that the big scope for revenue that they can enhance on is the routes of connectivity which need to be increased in the airline networks. In order to achieve this mission, it is needed that they strengthen the ability to work profitably in the US with help of partnership with Delta. He adds that the coming year will be more significant for them in regard to the two years plan.