WEBVTT - Virgin Atlantic CEO Shai Weiss Talks 40th Anniversary

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<v Speaker 1>I'm joined by Shy Weiss. He is the CEO of

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<v Speaker 1>Virgin Atlantic. Virgin Atlantic this year celebrating forty years in business.

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<v Speaker 1>Shi go to see.

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<v Speaker 2>Nice to be here.

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<v Speaker 1>So forty year is what's next?

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<v Speaker 2>Another forty years? First of all, so you know, it's

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<v Speaker 2>delightful to celebrate our fortieth anniversary June twenty second, nineteen

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<v Speaker 2>eighty four flight from Gatwick into Newark Airport. And you know,

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<v Speaker 2>the thing that sets us apart has always been the

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<v Speaker 2>red thread, our people, the magic that we make happen

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<v Speaker 2>every single flight. Yeah, so we're delighted to be here.

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<v Speaker 2>In the future, well, the future is bright. We have

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<v Speaker 2>a very clear mission to be the most love travel

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<v Speaker 2>company and become sustainably profitable and we are very much

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<v Speaker 2>on course to achieving.

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<v Speaker 1>Those Okay, we'll pick up on the profitability story. Interesting moments.

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<v Speaker 1>So in terms of new roots, in terms of what

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<v Speaker 1>you're doing with the airline this year, what are the plans.

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<v Speaker 2>Yeah, so today we're announcing actually three new partnerships. We're

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<v Speaker 2>announcing a co chair with elaal and two of our

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<v Speaker 2>sky Team partners, Soudia and SAS. And we're also announcing

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<v Speaker 2>that we're turning to Aviv on September the fifth, so,

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<v Speaker 2>you know, increasing connectivity to our partners in sky Team

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<v Speaker 2>and providing our customers were more choice and actually people

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<v Speaker 2>coming into London and flying beyond.

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<v Speaker 1>How easy was it to make the decision to return

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<v Speaker 1>to Tel Aviv?

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<v Speaker 2>You know, we we were the last carry to actually

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<v Speaker 2>fly into Tel Aviv out of the UK, So the

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<v Speaker 2>decision was made a few months ago. I think September

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<v Speaker 2>is the right time to do it, and it's all

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<v Speaker 2>about the first of all demand, but of course the

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<v Speaker 2>feeling that our people should be comfortable flying there, because

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<v Speaker 2>our people stay overnight in Tel Aviv and we want

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<v Speaker 2>them to be comfortable doing their jobs, and I think

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<v Speaker 2>September is the right time for that.

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<v Speaker 1>This isn't based on progress of the peace deale. This

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<v Speaker 1>is a price based on what is happening with the

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<v Speaker 1>geopolitical story. It's just based on a demand story and

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<v Speaker 1>the certainty that you have the your people will be

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<v Speaker 1>saying yes.

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<v Speaker 2>And of course the Delta is flying this week to

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<v Speaker 2>Tel Aviv. I think United is coming after them, So

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<v Speaker 2>I think there is a sense that you know, the

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<v Speaker 2>carriers are seeing that things have stabilized, and of course

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<v Speaker 2>with Biden's announced and hopefully the parties can find a

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<v Speaker 2>way to accept his proposal and get much needed stability

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<v Speaker 2>in peace for everyone in the Middle East.

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<v Speaker 1>Interestingly that you've got almost on the same piece of

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<v Speaker 1>paper a coach there with Sadia and a return to Israel. Yes.

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<v Speaker 2>And the beautiful thing about it is we've added sas

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<v Speaker 2>so kind of our Scandinavians in the Middle to show

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<v Speaker 2>that Virgin Plant of course does business with everyone wherever

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<v Speaker 2>there is demand, and it's our partners. We are happy

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<v Speaker 2>to provide it. But it's a three way announcement today.

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<v Speaker 2>We could have done it individually. But actually all this,

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<v Speaker 2>all these conversations started a year ago here in AATA.

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<v Speaker 2>It's nice to see progress a year on. This's talk

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<v Speaker 2>about politics.

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<v Speaker 1>British election coming out and it looks as if we're

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<v Speaker 1>going to see a change in a change in government.

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<v Speaker 1>What do you want to see from that next administration

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<v Speaker 1>in ten Downing Streets. It looks like it's going to

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<v Speaker 1>be the labor policy, That's what the polling is suggesting

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<v Speaker 1>at the moment. What's the message, What does the aviation sector,

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<v Speaker 1>what does Virgin Atlantic need to see from that next element?

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<v Speaker 2>We've been very very clear, and it's really not about

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<v Speaker 2>who wins the elections. It's about a new sense of

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<v Speaker 2>pride in aviation in the United Kingdom. There's some amazing

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<v Speaker 2>companies in the United Kingdom, but I think you know,

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<v Speaker 2>the need to tax aviation companies with very thin margins,

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<v Speaker 2>the fact that there is a lot of policies and sustainability,

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<v Speaker 2>and the fact that we don't recognize that as an

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<v Speaker 2>island nation, we really need a thriving aviation industry. So

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<v Speaker 2>what I'm looking for from the government is leadership and

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<v Speaker 2>understanding that aviation is the friend of the UK public

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<v Speaker 2>and the friend of government. You know, we needed for trade,

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<v Speaker 2>for of course, connecting families and loved ones, for tourism,

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<v Speaker 2>and a strong aviation a strong virgin Atlantic can only

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<v Speaker 2>be achieved if there is support for that from government.

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<v Speaker 1>One of the key things that obviously you've been talking

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<v Speaker 1>about a lots over the last few years has been

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<v Speaker 1>what has been happening at Heathrow, British Head, which has

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<v Speaker 1>been having the same conversation. There's a sense that maybe

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<v Speaker 1>the customers, ie the airlines have not been getting a

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<v Speaker 1>fair of the web in terms of the money that

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<v Speaker 1>is having to be paid in order to make that

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<v Speaker 1>make that that airport work. Now there's been some changes,

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<v Speaker 1>do the changes go far enough? What do you want

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<v Speaker 1>to would you like to see? Would you suggest the

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<v Speaker 1>next government do we see changes that Heathrow?

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<v Speaker 2>Well, first of all, it's very opportune time. We have

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<v Speaker 2>a new leadership at Heathrow, we have potentially new government

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<v Speaker 2>coming in and potentially new ownership of Heathrow, and there

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<v Speaker 2>is no doubt in my mind that we need to

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<v Speaker 2>see change in heath Throw. The service is simply not

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<v Speaker 2>good enough for the most expensive airport in the world.

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<v Speaker 2>It's the most busiest airport in Europe, it's the fourth

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<v Speaker 2>busiest in the world. And when you're here in Dubai

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<v Speaker 2>and Abu Dhabi and you can see what can be

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<v Speaker 2>done with fantastic infrastructure, we need to see better on

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<v Speaker 2>behalf of our customers.

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<v Speaker 1>It looks like what does that actually what would you

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<v Speaker 1>like to see the model being I'd like.

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<v Speaker 2>To see a more efficient, a cleaner of course, but

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<v Speaker 2>does the current so does the current ownership structure work?

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<v Speaker 1>Would would there be a better model? It would work?

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<v Speaker 2>I think if we have the opportunity to actually participate

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<v Speaker 2>in and ownership and running of the terminal. We would

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<v Speaker 2>be a fart. We would do a far better job.

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<v Speaker 1>He throw up into separate terminal.

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<v Speaker 2>That's one of the options are There are many options

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<v Speaker 2>to consider, but first let's not forget he Throw is

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<v Speaker 2>a regulated asset base, just like Thame's water. So there

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<v Speaker 2>is a reason why they are regulated because you know,

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<v Speaker 2>there is only one true hub in the United Kingdom.

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<v Speaker 2>It happens to be Heathrow. When you tend to be

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<v Speaker 2>a dominant player or a monopoly player, you tend to

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<v Speaker 2>be complacent. And I would think that it was free

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<v Speaker 2>competition at he Throw, or more sense of competition at Heathrow,

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<v Speaker 2>the service that consumers would get would be far improved

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<v Speaker 2>and airlines could do a better job.

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<v Speaker 1>You don't think the Thames water example is that actually

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<v Speaker 1>competition doesn't work.

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<v Speaker 2>No, I think what I actually think is that just

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<v Speaker 2>burdening stuff with that, not thinking about, not thinking about

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<v Speaker 2>the consumers. That at the end of the of the game,

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<v Speaker 2>that's where things start to fail. And I think there's

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<v Speaker 2>different models. Of course water is not exactly airports, but

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<v Speaker 2>the pillars are clear and the comment is fair.

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<v Speaker 1>Talk about you talk about Heathrow. Gatwick used to be there.

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<v Speaker 1>We used to be there, and I hear that you'd

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<v Speaker 1>be welcome back.

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<v Speaker 2>That's what I hear, and we always like to be

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<v Speaker 2>welcome back. It's forty years for the first flight from

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<v Speaker 2>from Gatwick and my answer is a very clear one.

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<v Speaker 2>Never say never. You know, there is the historic home

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<v Speaker 2>of Virgin Atlantic. There are constraints that Heathrow in terms

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<v Speaker 2>of the ability to grow. Never say never to.

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<v Speaker 1>Think a Trump presidency would make a transatlantic airlines life

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<v Speaker 1>more difficult.

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<v Speaker 2>The good news is I don't have to vote, and

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<v Speaker 2>neither is anybody in the UK. But we do know that.

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<v Speaker 2>Of course, there is a special relationship between the UK

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<v Speaker 2>and the US, so whoever wins the elections, I'm sure

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<v Speaker 2>will recognize the need to establish it.

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<v Speaker 1>It feels like we're heading into a more fragmented world

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<v Speaker 1>and the less fragmented world has suited big international airllies.

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<v Speaker 1>A more fragmented, fragmented world, in theory, would be the

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<v Speaker 1>exact opposite. Is that a fair conclusion.

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<v Speaker 2>Well, you know, a unified I think in a global

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<v Speaker 2>world is better for airlines, of course, because airlines are

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<v Speaker 2>necessary in that type of an environment. There are more

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<v Speaker 2>isolationist world is not where we play in it. There

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<v Speaker 2>are one point four billion people voting this year. Of course,

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<v Speaker 2>we're just about to finish the Indian elections, US, the

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<v Speaker 2>UK and elsewhere. We're just see Mexico. So I would

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<v Speaker 2>like to think that the people understand, the people who

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<v Speaker 2>are voting understand that stability is good, that cooperation is good.

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<v Speaker 2>It does feel a bit more fragmented, but you know,

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<v Speaker 2>airlines don't run things for one year or two. That

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<v Speaker 2>we run things into a very long future. Looking ahead,

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<v Speaker 2>I'm pretty confident that the US will lead the way

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<v Speaker 2>in creating an environment.

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<v Speaker 1>That is inclusive. Congratulations on the forty yes credit see

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<v Speaker 1>thank you, thanks so much. Still about to say