Virgin Atlantic chief Sir Richard Branson thinks that the Indian skies are quite tough now. “There is over-capacity in the domestic sector. Indian aviation companies are bravely facing the challenges. We will, at present, wait and see. If we see an obvious opportunity, we will invest.”

On recent policy reforms in the aviation sector, Branson said, “India will benefit from the free open market and FDI coming in.

Mumbai service

Virgin Atlantic will invest more than £300 million for better seats, a ‘futuristic’ bar, and in-flight entertainment customised for Indian travellers on the London-Mumbai/Delhi sector.

The investment will also create 140 jobs in India and the UK.

The airline had closed down its Mumbai operations three years ago, but continued to operate to Delhi. The Mumbai services will re-start from October 28.

Virgin Group’s Sir Richard Branson said, “We have also applied for slots to fly into Bangalore, Hyderabad and Goa from London Heathrow. Though it is difficult to get slots from the London Heathrow airport, these three routes are the top 10 destinations for Virgin Atlantic.”

One million people fly between Mumbai and the UK each year, with the market rising 10 per cent in the last two years alone.

“Mumbai is a key market for us. We have seen a 12 per cent growth last year despite the economy experiencing hiccups,” Branson said. India forms less than five per cent of the total passenger share of the airline.

Fare cut

While Virgin Atlantic resumes its services from Mumbai, other carriers like Jet Airways and Air India have slashed their fares on the Mumbai-London sector.

To that, Branson said: “It’s good to see that wherever Virgin flies, fares collapse! We will be price competitive. We don’t like to fly with empty seats.” .

He said he plans to expand the code share agreement with Jet Airways.

> nivedita.ganguly@thehindu.co.in

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