VIRGIN ATLANTIC RESTRUCTURES FLIGHTS AND SCHEDULES AS A RESULT OF THE EVENTS OF SEPTEMBER 11

Virgin Atlantic Airways today announced that it will operate a full flight schedule between the UK and the USA in the coming weeks which will clear the backlog of bereaved and stranded passengers, including those being carried on behalf of the Foreign Office. The airline will then ground five of its 747-200’s and reduce its activities by around 20% as a result of the long-term effects of last week’s tragic events.

The planned reduction in services will be introduced from October 2001 and will see the airline reducing its capacity across the North Atlantic. Capacity will, however, be increased on routes from London to the Far East and South Africa.

The decrease in flights will result in a reduction in the airline’s workforce throughout its operations but the company will take all measures to minimise compulsory redundancies by asking staff to come forward to take unpaid leave and redundancy. The airline is now starting the process of consultation with the trade unions and employee representative groups. Virgin Atlantic is also seeking job opportunities for staff in the rest of the Virgin group. For example, staff will be offered the chance to be interviewed for employment with Virgin Active, Virgin’s leisure and health club business. It is currently engaged in a £30 million expansion programme in the UK which will create up to 700 new jobs over the next 12 months.

Sir Richard Branson, Chairman of Virgin Atlantic Airways, said today

“The thoughts of everyone at Virgin Atlantic are still with the families and friends of those involved in last week’s tragic events.

“Today’s decision has been forced on us by the consequences of those events. Virgin Atlantic needs to respond quickly and responsibly to match these exceptional circumstances and the consequential reduction of future customer demand.

“It is clear to everyone that there will be significantly less traffic across the North Atlantic for some time. By taking this action now we will put ourselves in a position from which to expand again in the future.

“Everyone at the airline knows all too well the huge effect recent events have had on the aviation industry. I would like to thank them for their spirited and professional response in the last week which I am sure will be maintained in the months ahead.”