Virgin pulls out of China

The British carrier has decided to terminate its London-Shanghai flights operated with Boeing 787 jetliners, due to external factors. The last flight will take place on 25OCT24, marking the end of an era that has lasted a quarter of a century. Shanghai is the only destination serviced by Virgin in China.

Virgin’s B787 can accommodate a variety of unit load devices in their lower deck compartments, making air cargo an important contributor to the overall efficiency of a route  –  courtesy: Virgin Atlantic

Competitive disadvantages
Virgin Atlantic is the latest victim of Putin’s war against Ukraine. As a result of the subsequent sanctions imposed by democratic countries against Russia, the Siberian airspace remains closed to Western airlines, while Russian carriers are no longer permitted to fly to Europe or North America. Since the double embargo entered into force, Virgin, BA, KLM and many others need to circumvent the vast Russian landmass on East-West air sectors, taking detours via the Caspian region and Kazakhstan. Compared to the past, this considerably increases flight times to and from China, and drives up fuel consumption. In addition, the above-mentioned airlines and more are facing unfair competition, as carriers such as Ethiopian Airlines Cargo take advantage of the situation by continuing to use Russian airspace on routes linking China with Europe, because they rejected embargoing the Putin regime’s war on Ukraine for violating international law. In comparison to Virgin, BA, or Lufthansa, they save about two hours when navigating their aircraft through Russian airspace en route from Shanghai to London, Amsterdam, Paris or Liège.

The flights have become unmaintainable
Negatively affected by the forthcoming suspension of flights are not only Virgin’s passengers, but also its cargo services. A Virgin spokesperson emphasized the importance of air freight transportation which substantially contributes to the carrier’s revenue generated on the Shanghai-London sector. The route is currently operated daily with Virgin’s Boeing 787 Dreamliners. Depending on the number of passengers and their luggage, this Boeing variant can carry up to 70 m3 per flight. She also pointed at “significant challenges and operational complexities resulting from the Russian airspace closure”, forcing Virgin to circumnavigate the country’s national boundaries. These unfavorable external circumstances have put financial pressure on the Shanghai flights, making them commercially unmaintainable, she argued.

Focusing more on India
Initiated by Air France-KLM’s CEO, Ben Smith, a debate has now begun in the EU about withdrawing traffic rights from airlines that continue to fly across Russia and thus take the shorter route between China and Europe. These carriers, primarily Chinese airlines, would have a clear competitive advantage over their European competitors, but also airlines from South Korea or Japan, which support the sanctions regime against Russia due to its international laws violating war in Ukraine.   Virgin only resumed Shanghai flights in MAY23 after a two-year break due to coronavirus. Following the carrier’s pullout, London-Shanghai will continue to be served daily by British Airways, Air China (Gatwick), and China Eastern. The withdrawal from Shanghai was linked to Virgin’s announcement that it would focus more on the Indian market in future and increase its services there.

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