Brussels-based low-cost regional carrier Virgin Express carried 2.42 million passengers in 2001, 18.6 % lower than in 2000; 26% capacity cuts meant the load factor went up 8.4 % to 81.7%. However, the load factor fell to 71.7% in the last quarter of the year due to the demise of Belgium's national airline Sabena, which had bought seats on Virgin Express flights to London Heathrow, Barcelona and Rome, providing 40% of Virgin Express's turnover.
Virgin Express also faced increased competition, both from Ryanair expanding its Belgian base at Charleroi, and Sabena's low-cost former subsidiary Delta Air Transport (DAT), which used a €85 million ($75 million) grant from the government to flood the market with cheap promotional fares. The carrier is in negotiation for a possible merger of operations with DAT.
Following a draconian restructuring in 2000, Virgin Express had shown a €1.3 million profit by the end of September, and had hoped to break even in 2001 - until Sabena collapsed.
Source: Flight International
