It is definitely a sign of the times.

Virgin Atlantic won’t return to Hong Kong

Many airlines have stopped service to Hong Kong during the Pandemic because of Hong Kong's requirements. The limited passenger demand in the city has made it difficult for crews. Things are getting better for Hong Kong, even if they are not as good as they were before the outbreak.

Not all airlines will return to Hong Kong. After serving the city for almost 30 years, Virgin Atlantic has decided not to resume flights. The office in Hong Kong will be closing. Virgin Atlantic had a club at the airport. Office staff and cabin crew are going to lose their jobs.

This decision is described in a statement by Virgin Atlantic.

“After careful consideration we’ve taken the difficult decision to suspend our London Heathrow – Hong Kong services and close our Hong Kong office, after almost 30 years of proudly serving this Asian hub city. We’re constantly reviewing the performance of our network and as part of our long term strategy of being sustainably profitable.”

Virgin Atlantic says that the Hong Kong route is becoming less profitable. Long haul flights have been cut by Virgin Atlantic, which has reduced the number of connecting travelers.

The airline expects it to take some time for demand to increase in Hong Kong and that the route would take up to two hours to operate in each direction.

Virgin Atlantic won’t return to Hong Kong

This seems like a logical route cut

Virgin Atlantic cutting Hong Kong service makes sense, and I am surprised it wasn't done earlier on in the Pandemic.

  • Virgin Atlantic’s strength is in the North Atlantic market, given that Delta has a 49% ownership stake in Virgin Atlantic, and the airline is part of a joint venture with Air France-KLM and Delta
  • Virgin Atlantic is best off focusing on transatlantic flights, plus routes to the East that people would connect off of from North America (like Africa, India, Pakistan, etc.)
  • The London to Hong Kong route had virtually no connecting traffic on either end for Virgin Atlantic, since most people aren’t flying from North America to Hong Kong via London, and Virgin Atlantic didn’t have significant partners in Hong Kong
  • Virgin Atlantic was at a massive disadvantage compared to British Airways and Cathay Pacific (the two other airlines operating the route), as they both had connectivity on both ends
  • Virgin Atlantic only has a fleet of a few dozen planes, so the airline very much has to prioritize which destinations are worth serving, as growth potential is very limited
Virgin Atlantic doesn’t have a huge fleet

Bottom line

After 30 years, Virgin Atlantic will stop flying to Hong Kong. The airline says that the route is no longer viable due to the decline in profitability and the reduction in demand.

It seems like the writing was on the wall for this as the planes can be used in other markets.

What do you think about Virgin Atlantic's decision to leave Hong Kong?

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