Virgin stops flying to India next month

>From Indo-Asian News Service

New Delhi, July 16 (IANS) British carrier Virgin Atlantic Airways will stop
flying to India from next month.

The airline will end is code-share agreement with India's international flag
carrier Air-India.

"Virgin had given us a termination notice two months ago," an A-I
spokesperson told IANS. "After that there was no communication from them
until we learnt they were pulling out."

Virgin had sought permission to launch a third New Delhi-London service over
a year ago, but the Indian government refused, setting the precondition that
Indian planes be given additional landing slots in London's Heathrow
airport.

Virgin Atlantic launched its operation in July 2000 with great fanfare and
operated two flights a week to London. The airline is 51-percent owned by
British entrepreneur Richard Branson, with Singapore Airlines Ltd holding
the rest.

Its code-sharing agreement enables it to fly A-I's flight entitlements on
the India-Britain route used by some 200,000 travellers annually. Since A-I
does not have enough planes, most of its capacity remains unused.

Branson had earlier said the airline's India operations were not
commercially viable and the company was frustrated over the blocks that had
been put on its plans to expand its operations.

Virgin claimed to hold a 15 percent share of the non-stop New Delhi-London
route.

Industry representatives, however, said the impact of Virgin's pullout would
be near negligible.

Said K. Joshi, an executive of a noted online tourism portal: "Air-India is
increasing the number of India-Britain flights. Besides there are enough
flights to London. So if Virgin stops flying there will be very little
difference."

--Indo-Asian News Service

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