BA boss predicts tough times for rival Virgin

WAR OF WORDS: Willie Walsh has accused Richard Branson of 'bleating' about BA's transatlantic plans. (Getty Images)

BA boss Willie Walsh has rounded on the "bleating" of transatlantic rival Sir Richard Branson and warned that Virgin will "struggle" to cope with the growing strength of Europe’s super airlines.

“Quite honestly Virgin is going to struggle going forward. They are becoming increasingly isolated. Their major shareholder Singapore Airlines described them as an underperforming investment,” BA CEO Willie Walsh told Arabian Business in an exclusive interview to be published on Sunday.

“They have a lot of challenges and it doesn’t surprise me therefore that Richard Branson is bleating on about the BA operation because I don’t think the future looks very bright for him.”

The global aviation industry is suffering from the impact of a global slowdown and the rising cost of aviation fuel which is forcing many carriers to trim costs and raise fares.

BA is planning to merge with Spain’s Iberia to create Europe’s largest carrier. At the same time, it is seeking anti-trust approval to form an alliance with American Airlines to operate as a single carrier on transatlantic routes, where it competes with Virgin. Branson is lobbying against the alliance.

“The environment is such that BA, Air France-KLM and Lufthansa will be the carriers that come through this in the strongest position,” Walsh said.

The BA CEO said that the price of flights would have to increase to compensate for the industry’s rising cost base.

“There is no way fare increases can be avoided. The industry is bankrupt otherwise,” he said.

And he predicted that more carriers in the US and Europe could face collapse.

“The US carriers are all very weak and I think we’ll see further Chapter 11 filings and potentially Chapter 7 filings, and more carriers in Europe fail,” he said.

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

BA versus Virgin
Posted by Mirdif Mike, Dubai on Sunday 14 September 2008 at 09:17 UAE time


Willie Walsh is forgetting one thing.....Virgin is better than BA, whoever it is combined with. Many people stung by appalling experiences on BA would rather walk than fly with them - I would. Until BA recognises that the passengers pay their wages and are not just an inconvenience then Willies views are irelevant.

Willie Walsh wont survive if pax dont fly BA!!
Posted by skyobserver, London, UK on Friday 12 September 2008 at 14:22 UAE time

WW is quite unreal with his statement about the 'wooly jumper' Branson! WW needs to get the respect of his aircrew as well as the travelling public to avoid the airline losing the loads to the competition! I have never spoken to a group of disillusioned aircrew when flying on BA! WW shows as much contempt for the travelling public as he does to his own staff! Not a good combination !

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM