VIRGIN ATLANTIC AIRWAYS

RICHARD BRANSON

CASE FACTS

• Started in 1984 – Britain’s second largest long haul airline – Head office – Crawley, west sussex, England.

• “To provide all classes of travelers with the highest quality travel at the lower cost”

• Roy gardner & David tait – Co-managing director ( X laker executives)

• Syd Pennigton – Co-managing director (X Mark & Spencer retailer)

• In 1992 they introduced Mid class for the cost conscious business travelers.

• They had three classes – Upper class, Mid class, Economy class.

• 1991 – They joined Heathrow – sydney service via hong kong with Anslet Airlines.

• Partnership with Malaysia Airlines for flight from London to Kula lumpur.

• Executive travel Airlines of the year in Jan 1995• 1994 – Partnership with Delta Airlined• Other Airline partners – Air Newzeland, All

Nippon Airways, Gulf Air, Hawaiian Airlines, Scandinavian Airlines, Us Airways.

• Codeshare agreement – Multiple airlines selling space on the same flights, where a seat can be purchased on one airline as if it was actually operated by a co-operating airlines under a different flight number or code.

• Air china, All Nippon airways, Jet airways, Singapore airlines, South African airways.

SWOT ANALYSIS

• STRENGHT

Most attractive cabin & crew. Cool and informal treatment to passengers Profit making airlines Service quality Entertainment & Fun for customers Innovation Alternative to BA. Value for money Convenience and friendly airline.

• WEAKNESSSmall player in airline.

Only few planes No clear customer target Small network Lack of scope of economies Public relation is not that much efficient.

• OPPORTUNITYSince it has a good brand value it has a great advantage against their competitors (Exhibit 11)Partnership Alliance.

• THREATRecessionTerrorismAir-trafficFall in tourism IndustryRising fuel costTaxes.

Relating this case to subject

• Service marketing approach – Internal marketing, External marketing and interactive marketing.

• Service encounter – Remote encounter, phone encounter and face to face encounter.

• Managing service quality – Reliability, Responsiveness, Empathy.

• Factors leading to satisfaction – Recovery and Adaptability.