Hipster Pitch
Virgin also remains a household name despite a limited network and a fleet including aging Boeing Co. 747s and discontinued Airbus SE A340s -- testimony to its continued focus on remaining stylish and youthful even after 33 years of hard slog in the ultra-competitive trans-Atlantic market.
In his letter, Branson claimed victory in a spat with Walsh over Virgin’s continued independence and maverick status dating from the investment by Delta, the second-biggest U.S. carrier and a pillar of the airline establishment that’s refocused the U.K. company on trans-Atlantic services and away from more global routes.
“Willie Walsh predicted that the Virgin Atlantic brand would disappear within five years,” Branson wrote. “Whether childishly or bravely, he also said he’d accept a knee in the groin from me if it didn’t. Well Willie, that five year point is up this December.”
Walsh, announcing a 45 percent jump in second-quarter operating profit that’s forecast to propel full-year earnings above 2.8 billion pounds, said he doesn’t regard Virgin’s Air France tie-up as a major threat and that the carrier surrendered its distinct identity the day it bedded down with Delta.
“It’s just a change of ownership,” Walsh said on a conference call Friday. “I made my views clear five years ago, and I’ve been proven correct. It will be fun to see what happens from here, but you know the issue for us is that that airline has been in effect controlled by Delta for several years.”
This article was provided by Bloomberg News.