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Tag: virgin atlantic

  • Virgin Atlantic to End Austin-Heathrow Flights Amid Tech Bubble Burst

    Virgin Atlantic to End Austin-Heathrow Flights Amid Tech Bubble Burst

    Virgin Atlantic has announced its decision to end its service connecting Austin-Bergstrom International Airport (AUS) to London Heathrow (LHR). The British airline cites a “persistent softening in corporate demand, specifically within the tech sector,” as the primary reason for this strategic move.

    The last Virgin Atlantic flights to Austin are scheduled to operate on January 7, 2024. For those passengers affected by this decision, the airline has promised to provide various options, including the choice of a full refund. For now, Virgin’s UK rival, British Airways, continues to operate their AUS-LHR service, which has been in place since 2014.

    Juha Jarvinen, the chief commercial officer for Virgin Atlantic, expressed the airline’s sentiments, saying, “We’ve adored flying our customers to Austin and experiencing this wonderful city of music and culture, but demand in the tech sector is not set to improve in the near term, with corporate demand at only 70% of 2019 levels. Therefore, sadly, we made the tough decision to withdraw services. We’d like to thank everyone in Austin, our customers, teams, partners, and the authorities for their support over the past 18 months.”

    Virgin Atlantic had only launched its nonstop flights to Austin in May 2022, directly competing with British Airways on the same route. However, the numbers reveal a stark difference in the passenger counts, with Virgin Atlantic carrying only about a third of the passengers that British Airways was flying to and from Austin. The most recent figures from August, compiled by Bergstrom Airport administration, indicate that Virgin Atlantic transported approximately 4,800 passengers to and from Austin, compared to British Airways’ impressive 16,000 passengers – perhaps owing to the extremely high concentration of Oneworld elites in the Austin area.

    Austin-Bergstrom International Airport officials issued a statement expressing their gratitude for Virgin Atlantic’s ambitious route. They added, “We hope to welcome them back one day.”

    The suspension of the Austin-London route marks the second international route cancellation at AUS in recent months. Spirit Airlines had previously suspended its nonstop route to Monterrey, Mexico last month, citing low passenger demand (though, in fairness, Spirit has been facing larger financial difficulties). In response, Viva Aerobus has announced plans to launch its AUS-Monterrey route in March 2024.

    The tech industry has played a pivotal role in Austin’s rapid growth, with tech workers and companies flocking to the area from Silicon Valley and other parts of California. However, the tech bubble that fueled this expansion is now bursting, resulting in layoffs, hiring freezes, and a glut of applicants for tech-adjacent jobs. Even those with FAANG pedigrees are now scrambling to secure any tech-adjacent role they can get their hands on, including desktop support positions, often offering significantly lower pay, fewer business travel opportunities, and less time off compared to their previous positions.

    As Austin’s growth in recent years has been largely tech-driven, the bursting of the tech bubble has a disproportionately large impact on the city’s economy. This development could potentially affect the future of international routes from Austin, as well as domestic activity as that slows down across the board.

    Amid Austin’s rapid expansion in recent years, it has evolved into something of a “mini hub” for Southwest Airlines and American Airlines. Plans for a new midfield concourse had recently been announced, and were expedited by the Austin City Council just last month. However, with the uncertainty surrounding the tech bubble, the fate of these plans remains uncertain.

    The decision by Virgin Atlantic to suspend its Austin-London route reflects the challenges faced by the tech-driven economy of Austin and the broader impact of the tech bubble’s burst on the city’s small-but-mighty airport. We’ll have to keep a close eye on the developments at Austin-Bergstrom as it navigates through this period of transition.

    h/t KXAN

  • BA Diverts Tel Aviv Flight on Final Approach; BA, VS Suspend Israel Operations

    BA Diverts Tel Aviv Flight on Final Approach; BA, VS Suspend Israel Operations

    A British Airways flight bound for Tel Aviv found itself diverting back to London Heathrow on Wednesday, just as it was on its final approach into Ben Gurion Airport (TLV). Flight BA165, operated on an Airbus A350-1000, touched down safely in London a little after 6:30 PM local time, after almost 10 hours airborne. The reason behind this unexpected change of course was the launch of a barrage of rockets by Hamas toward the city. While the Israel Airport Authority stated that the rocket attack didn’t pose an immediate threat to the airliner’s safety, British Airways decided to take no chances, and immediately suspended all its operations to Israel.

    This incident occurred amid escalating tensions in the region, with the conflict between Israel and Hamas intensifying. British Airways had been among the few airlines that continued to operate regular flights to Tel Aviv even after the hostilities began over the weekend. However, a spokesperson for the airline cited the “changing security environment” as the reason for discontinuing the flights.

    “Following the latest assessment of the situation, we’re suspending our flights to and from Tel Aviv,” the airline’s spokesperson confirmed. While Tel Aviv Airport had experienced sporadic rocket attacks in the days prior, British Airways had continued to operate non-stop flights from its Heathrow hub. BA had already pivoted towards daytime flights into Ben Gurion to prevent their crews from having overnight layovers in the country amid the ongoing war. Interestingly, fellow IAG-owned carrier Iberia Express still has flights scheduled for tomorrow between TLV and Madrid-Barajas (MAD), though it’s unclear if that will change amid this rapidly-evolving situation.

    Virgin Atlantic, another carrier operating flights to Tel Aviv from London Heathrow, initially indicated Wednesday that they intended to continue service to the region as scheduled. However, as the situation has continued to evolve, the airline has now suspended Israel service for at least the next 72 hours as they continue to re-assess conditions on the ground.

    Even Turkish Airlines, known for its high geopolitical risk tolerance and steadfast approach to serving conflict zones, has suspended its flights to Israel. Even amid the ongoing Russia-Ukraine conflict, TK has maintained its flights to Russia, providing about the only reliable link for essential travel to and from the region while most US and EU carriers have suspended their Russia operations indefinitely. However, the escalating tensions in Israel have proven too much even for Turkish, underscoring the gravity of the situation on the ground.

    As for British Airways, their services to Tel Aviv have been suspended for at least the remainder of the week. Given the current state of affairs, it’s highly likely that this suspension will extend well beyond that initial timeframe. It’s interesting to note that European carriers appear to have a higher geopolitical risk tolerance compared to their US counterparts. For instance, Delta Airlines has suspended its flights to Tel Aviv for at least the remainder of October.

    For those currently in Israel, especially tourists, the situation has become increasingly challenging as flight options out of Tel Aviv continue to dwindle. British Airways was once a reliable choice for exiting the region, but it’s no longer an option. In light of this, it’s essential for individuals to take proactive steps to ensure their safety and well-being. Registering with your country’s embassy (STEP program for American citizens) is a prudent move to ensure your government is aware of your whereabouts.

    For US and Canadian citizens, the most practical strategy may be to seek the soonest available means to get to Europe and then determine a game plan from there. Despite President Joe Biden’s pleas to the airline industry, it’s unlikely that we’ll see nonstop air service to North America from the region (except some limited service on El Al) until the conflict subsides. The situation is evolving rapidly, and travelers are advised to stay informed and make well-informed decisions based on the latest updates and guidance.