Virgin Express has abandoned its fleet expansion programme - cancelling an order for 11 Next Generation Boeing 737s and shedding six other aircraft - after adopting a new strategic plan.
The loss-making Brussels-based carrier has dropped all scheduled charter operations. Managing director (MD) Neil Burrows says it will focus on "high value" (rather than "low cost") scheduled operations. The strategy, apparently devised by outgoing MD John Osborne, who reportedly resigned to join Ryanair, has seen the airline return a 737-300 to the lessor, sub-lease five -400s which are no longer needed, following the termination of charter services, and cancel the 11 737-700s which would have replaced its -400s from 2002/3.The moves leave Virgin Express with 17 737s, of which 11 are based in Brussels and six at its Shannon, Ireland hub.
Burrows, a founder of Air 2000 and former operations director at Virgin, says that after exiting the "time charter" market the airline hopes to ride out its financial difficulties and then expand services.
Given the high cost of operating from Belgium, Virgin Express cannot compete as a true low cost carrier, he says, and will instead aim to offer "high value fares to major airport destinations".
The carrier's network is under review, with London Stansted already having been dropped.
Source: Flight International
