Virgin Atlantic’s track record of losses: Delta should help, but what about SkyTeam?

A little over seven months into his post as CEO of Virgin Atlantic Airways, Craig Kreeger said that he has not yet decided on whether to join SkyTeam: "I am not convinced one way or another yet as we have some powerful bilateral partners in different alliances… Is there more value in a SkyTeam alliance rather than a blend of partners or on a bilateral basis?" (Arabian Business, 12-Sep-2013).

In this first part of a two part report on Virgin Atlantic, we consider the factors that Mr Kreeger is likely to be examining as he comes to a decision. The agreed joint venture with Delta is a more significant strategic development. In part two, we will update our analysis of the airline's network and finances and highlight the need for action to reduce its losses. On the alliance question, further procrastination may be a valid option.