FlyerTalk Forums - View Single Post - Only Slightly OT - Virgin win EDI & ABZ Heathrow routes
Old Nov 21, 2012, 1:12 pm
  #91  
Prospero
Moderator: British Airways Executive Club, Iberia Airlines, Airport Lounges and Environmentally Friendly Travel
 
Join Date: Jan 2003
Location: London, UK
Posts: 22,213
There are two big issues I have with SRB's endeavour I am still finding very difficult to comprehend.

Why go to all the expense of wet leasing aircraft and crews, as well as throwing untold funds into marketing new services which at best will return marginal profits (if any at all) when the EU imposed a condition on BA to open up its domestic feed to competitors. Is there a commercial advantage running your own airline i'm missing here?

Also, looking at the Virgin Group's broader commercial interests, surely this new enterprise pays ruin to all ambitions Virgin rail had for the East coast mainline franchise (linking London with Aberdeen and Edinburgh)
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