Branson's Virgin airline dances into India

Branson's Virgin airline dances into India
REUTERS & EEB

JULY 6: British business tycoon Richard Branson launched his airline into the Indian market on Thursday with characteristic flamboyance, waving a flag from the cockpit of his plane and dancing a jig on the tarmac.

Branson was one of 400 passengers on board the inaugural flight of a Virgin Atlantic Airways service between London and New Delhi, which is expected to challenge his old arch-rival British Airway's command of the busy route.

Virgin Airways has tied up a code-sharing agreement with Air India under which it will take three weekly flight entitlements on the route which the state-owned flag carrier does not use. Virgin's inaugural fare between New Delhi and London return has been pegged at Rs 29,800 while both British Airways and Air India charge around Rs 41,000.

British Airways currently uses all 16 of the flights it has been allocated on the route. "I am pleased that we now have three airlines flying on the Delhi-London route. Competition is always good," Branson told reporters after he stepped down from the Boeing 747-400. "We are very happy to be working with Air India which will earn a couple of million pounds a year because of the tie-up with Virgin."

As his plane taxied in Branson appeared at a cockpit window waving the Indian tricolour, and a crane lifted a garland of cloth flowers onto the aircraft's nose. Dressed in traditional Punjabi garb done up in Virgin's redand lilac colours, Branson gleefully danced a "Bhangra" down the steps with a group of local dancers.

SIGHTS SET ON MUMBAI & CALCUTTA: He said Virgin was keen to start a daily service to Delhi and it was also interested in operating flights from London to both Bombay, the country's Financial capital, and the eastern city of Calcutta.

Under a new bilateral agreement between Britain and India, there was no increase in the number of flights between the two countries. So if Virgin is to step up its flights it may need to borrow more allocations from Air India's 16.

Virgin Atlantic, known for its global practice of under-cutting competitors, has not yet disclosed its fares for the London-Delhi route. Current return fares on the Delhi-London sector offered by British Airways and Air India hover at around 600 pounds ($905) (Rs 41,000), though both airlines often offer heavy discounts to attract customers.

Branson said his airline could offer return fares for as little as 300 pounds (Rs 21,000) if necessary to ensure that none of his planes take off with an empty seat. The Virgin chief, who is renowned for publicity stunts as well as daredevil voyages by boat and balloon, rode through the streets of the Indian capital on an elephant when he announced his new service last year.

This time he plans to stay for two days to meet Air India officials and officials of the Ministry of Civil Aviation -- and his public relations machine has promised another "media stunt".

BA OFFERS 50% DISCOUNT: British Airways is offering a 50 per cent discount on its India-UK fares to take on Virgin Airlines as the latter is known for offering massive discounts and good in-fligt services.

British Airways offers non-stop flights connecting Mumbai and Delhi to London which has led to Air-India losing its market share. Air-India's all flights from Mumbai goes to London via New Delhi which leads to a loss of over 3 hours for London-bound passengers from Mumbai.

While British Airways will certainly feel the heat due to Virgin's entry into India, it would be Air-India which in, the long run would lose out as it has failed to utilise its own bilateral rights. Air-India, known for its shoddy in-flight services, will have no other alternative but to offer more seats to Virgin as it faces a massive aircraft shortage.