The Birth of Virgin Airlines
The airline firm known as Virgin Airlines having Sir Richard Branson as its founder in the year 1984, was established out of necessity. An incident prompted Mr. Branson where he was traveling to one of the British islands. Upon reaching the airport for his flight, he was notified that he and other passengers could not board the predetermined plane, as it didn't have enough passengers to warrant a trip. More like lack of quorum. A disappointed Branson hired a plane and bound the other disgruntled passengers, and they filled the plane. They got to their destination, and that's when it struck Branson that there is a shortage of airlines that care about their clients' need. Voila! Virgin Airlines was born (Branson 2015). The first airline route used was between Nerwark and Gatwick, using the aircraft Boeing 747-200 (G-VIRG) that under a lease. Its previous operator was Aerolineas Argentinas. A few years later, in 1990, more airport were added thus having more destinations like Boston, New York, Miami, and Tokyo.
The Growth of Virgin Airlines
Branson was previously in the music business before delving into the airline industry. He sold Virgin Music to Thorn EMI. The proceeds were invested into purchasing Virgin Atlantic that was first a super economy service that developed later to a premium economy class that bagged awards. Fast forward to 2003, the airline had recorded carrying 3.8 million, and the figure shot up to 4.6 million in 2006. November 2006 had the airline introducing premium economy class (Williams 2017). In 2010, the airline Virgin Airlines unveiled its global advertising strategy and its new brand livery and identity. There has been consistent growth in the airline, with it continually renaming itself. To date, there has not been any fatal incident involving Virgin airline aircraft that has been recorded (Azar et al. 2017).
Characteristics of the Airline Industry
Virgin airlines are in the transportation sector, and in the airline industry. The characteristics of the airline industry are as follows. The first is a proper understanding of the customer's journey. It entails having an understanding of the client's needs, their behavior and their decision making patterns to fortify the airline's digital strategy. The other is that they use every piece of analytics and data. It is the way to interact with the client in what is being offered and the product. It also helps to monitor the social media chatter, luggage checking, setting premium seating and in-flight meals to suit the client's needs. The other characteristic is being technologically savvy to improve efficiencies, track transactions and improve retention, as most airlines deploy smart systems (Wilkinson 2017). The other is that there is the employment of digital strategies using human-centered designs. Therefore, this is because each airline wants to emerge as an industry leader. The final feature is that airlines adopt the technology. Smart technologies are tailored to suit needs of airlines and assist in streamlining revenue management, customer loyalty programs, baggage management and mobile apps.
Financial Standpoint and Marketing Strategies
The financial standpoint of Virgin Airlines for the past 12 months up to date is as follows: the growth revenue is $2.7 billion that is a 13% growth. Its Cargo revenue is at $224 million, a 39% profit. The airline's cash balance is at 4562 million, and more revenue was generated with Virgin holidays recording strong performance (Jones 2015). The forms of marketing and advertising used by Virgin Airlines are diverse and creative. The most common is by using various social media platforms. It engages in competitions that encourage participants to take part, and there are tangible rewards and offers, tied to the company's products. The other way is by using its clients in marketing. An example is where clients would take photos of the aircraft using the in-flight bar called ClubHouse. The users were to use a hashtag 'have you the clubhouse,' and the entry with the highest likes would receive gifts and prizes. The airline is also big on motivating its staff who brand themselves as ultra-cool and unique. This way, they can be intimate and nimble with their clients (Vasigh et al. 2014). The strategy also makes them the envy of other airlines and the trick is by igniting the staff, and that way, they feel part of a team that they love working with it.
Conclusion
In conclusion, Virgin Airlines, a small airline, devoid of bureaucracies and government interference has set itself apart as the airline of choice for travelers as it brings stiff competition to leisure, regional markets, and business. The airline goes beyond the ordinary and over delivers beyond the client's expectations to give a possible flying experience.
Reference
Azar, J., Schmalz, M.C., and Tecu, I., 2017, Why Common Ownership Creates Antitrust Risks.
Branson, R., 2015. The virgin way: If it's not fun. It's not worth doing; Portfolio Trade.
Jones, G.G, 2015. Business Groups exist in developed markets also: Britain since 1850.
Vasigh, B., Fleming, K. and Humphreys, B., 2014. Foundations of airline finance: Methodology and practice…Routledge.
Wilkinson, L., 2015, July. Charting a course for effective scientific communication: Balancing accuracy and also promotion around Virgin Galactic crash. In Professional Communication Conference (IPCC), 2015 IEEE International (pp. 1-8). IEEE.
Williams, D., 2017. Richard Branson as the Global Magnate. What to learn from him about the Business.
