After decades flying high, Branson hits turbulence

As crew plan first ever walk-out, Simon Calder on what the dispute means for the airline

Twenty-seven years to the day after Virgin Atlantic's maiden flight, Sir Richard Branson's airline yesterday looked to be on the verge of its first-ever strike.

The British Airline Pilots' Association (Balpa) met to decide its next course of action after an overwhelming vote by flight crew in favour of a stoppage over pay. They agreed to postpone any announcement of industrial action.

No news, for most of the people affected by the Virgin Atlantic pilots' pay dispute, is bad news.

For passengers booked to fly with Virgin next month, it represents more uncertainty. Only those who will complete their journeys by 30 June – the first date that a strike could begin – can be confident their flight will operate.

Families booked to fly to Florida or beyond in July must wait to see how the dispute unfolds; until an agreement is reached or a stoppage is announced, they are unable to make alternative plans.

Balpa's position is entrenched: that Virgin's offer of a 4 per cent rise this year and 3 per cent in 2012 and 2013 is unfair.

"With inflation running at 5 per cent and likely to remain high, VA pilots would, if they accepted these increases, be in effect voting themselves years of wage cuts," it said.

Likewise, the airline has not moved from its statement that "the company has made a fair, affordable and sustainable offer that is in line with the rest of the industry and we continue to be open to dialogue".

Given the gulf between the two sides, the next move is likely to be the announcement of strike dates.

Balpa was careful not to say when it might reveal plans for industrial action. The union appears intent on giving Virgin the legal minimum of one week's notice of a strike, thereby limiting its ability to deploy contingency measures.

An announcement could come as early as today.

But Douglas McNeill, equity analyst for Charles Stanley Securities, said: "A strike isn't a foregone conclusion. Balpa is using the ballot to strengthen its hand in negotiations, knowing that if it comes to a strike it will have shot its bolt. But both management and unions will now find their options narrowing quite quickly."

The financial fortunes of Virgin Atlantic are sustaining extra damage with every day that uncertainty prevails. The airline's most profitable passengers are business travellers who tend to book late and pay the highest fares. Travel agents are understandably keen to steer their clients away from potential problems, and are already booking travellers on other carriers for journeys next month.

As an airline that has endured heavy losses from the financial crash, volcanic ash and snow at Heathrow, Virgin Atlantic can ill-afford to lose its premium passengers.

The main beneficiary of Balpa's decision to postpone is British Airways – which, coincidentally, yesterday reached a final settlement of its long-running cabin crew dispute.

What began two years ago as a row over changes to rosters, has dragged on through several ballots and two bouts of strikes, which have cost BA more than £150m.

Cabin crew belonging to the Unite union voted to accept a deal that will see staff travel privileges restored.

A British Airways spokesman said: "The skills and professionalism of BA cabin crew are second to none, and we are delighted this dispute is behind us."

During the course of the trouble, the airline pushed through many of the measures it sought, including a reduction of staffing on flights to and from Heathrow and the establishment of a "new fleet" of cabin crew on inferior terms and conditions.

Unite's general secretary, Len McCluskey, said: "We have reached an honourable agreement with BA. The overwhelming acceptance of this deal by cabin crew means that both parties can now move forward together on securing a bright future for the airline."

Virgin Atlantic said: "In the event that we are forced to amend our flight schedules we would be looking to secure alternative equipment and crews from aircraft leasing suppliers."

However, sourcing replacement long-haul planes in the peak month of July looks problematic. During the cabin crew strikes, BA chartered in only short-haul jets.

Virgin Atlantic has avoided strikes throughout its history. Early in 2008, two 48-hour stoppages were called by cabin crew, but the dispute was settled before any action took place.

The airline has endured a lean decade, effectively treading water with an ageing fleet.

Sir Richard Branson, the president of Virgin Atlantic, has made it clear that the airline is up for sale, but so far there is no evidence of a deal taking shape.

Q&A: what you need to know about the strike

When could a strike start?

Trade union legislation requires Balpa to give Virgin Atlantic a week's notice of any industrial action. If a stoppage were announced today, it could not begin until 30 June. The law also stipulates that any strike must begin within four weeks of the ballot result, that is, by 19 July.



How long might it last?

A prolonged strike seems unlikely. Airline operations are, as air-traffic shutdowns and snow at Heathrow have shown, susceptible to anything that interrupts normal operation. Even a two-day strike would cause widespread disruption, not least because planes and pilots would not necessarily be in the right places when it ends. A sequence of 48-hour strikes on different days of the week could severely damage the network, particularly on routes with only one or two services a week.



If I am booked to fly on a strike date, what will happen to my flight?

That depends on the airline's contingency plans, which it has not yet revealed. The impact will depend at least partly on your destination. Virgin Atlantic has three broad types of routes: prestige business services, such as New York, Hong Kong and Tokyo; high-end leisure routes, to California and the Caribbean; and mass-market flights to Florida. Non-striking pilots (about one in seven of the airline's 750 flight crew) are likely to be deployed to the highest-earning services. Destinations such as Los Angeles, with multiple daily flights, could have two departures combined. And the airline is likely to charter-in capacity to cover its Florida routes. But some passengers are likely to be offered only to postpone their trip or get a full refund.



Can I switch to another airline?

Not until strike dates are announced. Virgin Atlantic emphasises that its operations are continuing normally at present. Part of its contingency plans will involve switching passengers to other carriers, but that is most likely on links with plenty of capacity, such as Dubai and Nairobi. Were, say, the once-a-week 747 departure from Tobago to Gatwick to be grounded, BA could not possibly carry more than a fraction of the Virgin passengers.



My trip is booked with Virgin Holidays, not direct with the airline. Does this make any difference?

Yes. Indeed, any traveller who has a Virgin flight as part of a package – whether from Virgin Holidays or another operator – is in a strong position. The holiday firm has a duty to seek alternative transportation, or offer a full refund of the holiday cost. Travellers who have booked flights and accommodation separately, and who are unable to travel because of a strike, may not be able to recover the cost of their stay.

Have you tried new the Independent Digital Edition apps?
Voices
A recent rise in net migration has been considered bad news for the Government
voicesYet when we talk about it, the national media goes into a frenzy, says Nigel Farage
Life and Style
Miracle muffin: chemicals can keep a muffin looking good at least a month after it was bought
food + drinkThe alarming truth behind the chocolate muffin that won't decay
Arts and Entertainment
TV
Sport
Jonny Evans and Papiss Cisse come together
football
News
Approved Food sell products past their sell-by dates at discounted prices
i100
News
people
Travel
ebookHow to enjoy the perfect short break in 20 great cities
Independent Travel Videos
Independent Travel Videos
Simon Calder in Amsterdam
Independent Travel Videos
Simon Calder in Giverny
Independent Travel Videos
Simon Calder in St John's
Independent Travel Videos
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Travel

    Recruitment Genius: Product Advisor - Automotive

    £17000 - £23000 per annum: Recruitment Genius: Due to the consistent growth of...

    Recruitment Genius: Sales Administrator - Automotive

    £18000 - £25000 per annum: Recruitment Genius: An opportunity exists for an ex...

    Recruitment Genius: Renewals Sales Executive - Automotive

    £20000 - £30000 per annum: Recruitment Genius: An opportunity exists for an ou...

    Recruitment Genius: Membership Sales Advisor

    £18000 - £26000 per annum: Recruitment Genius: The fastest growing fitness cha...

    Day In a Page

    Homeless Veterans campaign: Donations hit record-breaking £1m target after £300,000 gift from Lloyds Bank

    Homeless Veterans campaign

    Donations hit record-breaking £1m target after huge gift from Lloyds Bank
    Flight MH370 a year on: Lost without a trace – but the search goes on

    Lost without a trace

    But, a year on, the search continues for Flight MH370
    Germany's spymasters left red-faced after thieves break into brand new secret service HQ and steal taps

    Germany's spy HQ springs a leak

    Thieves break into new €1.5bn complex... to steal taps
    International Women's Day 2015: Celebrating the whirlwind wit of Simone de Beauvoir

    Whirlwind wit of Simone de Beauvoir

    Simone de Beauvoir's seminal feminist polemic, 'The Second Sex', has been published in short-form for International Women's Day
    Confessions of a planespotter: With three Britons under arrest in the UAE, the perils have never been more apparent

    Confessions of a planespotter

    With three Britons under arrest in the UAE, the perils have never been more apparent. Sam Masters explains the appeal
    Mark Zuckerberg’s hiring policy might suit him – but it wouldn’t work for me

    Mark Zuckerberg’s hiring policy might suit him – but it wouldn’t work for me

    Why would I want to employ someone I’d be happy to have as my boss, asks Simon Kelner
    Russia's gulag museum 'makes no mention' of Stalin's atrocities

    Russia's gulag museum

    Ministry of Culture-run site 'makes no mention' of Stalin's atrocities
    The big fresh food con: Alarming truth behind the chocolate muffin that won't decay

    The big fresh food con

    Joanna Blythman reveals the alarming truth behind the chocolate muffin that won't decay
    Virginia Ironside was my landlady: What is it like to live with an agony aunt on call 24/7?

    Virginia Ironside was my landlady

    Tim Willis reveals what it's like to live with an agony aunt on call 24/7
    8 best workout DVDs

    8 best workout DVDs

    If your 'New Year new you' regime hasn’t lasted beyond February, why not try working out from home?
    War with Isis: Iraq's government fights to win back Tikrit from militants - but then what?

    Baghdad fights to win back Tikrit from Isis – but then what?

    Patrick Cockburn reports from Kirkuk on a conflict which sectarianism has made intractable
    Living with Alzheimer's: What is it really like to be diagnosed with early-onset dementia?

    What is it like to live with Alzheimer's?

    Depicting early-onset Alzheimer's, the film 'Still Alice' had a profound effect on Joy Watson, who lives with the illness. She tells Kate Hilpern how she's coped with the diagnosis
    The Internet of Things: Meet the British salesman who gave real-world items a virtual life

    Setting in motion the Internet of Things

    British salesman Kevin Ashton gave real-world items a virtual life
    Election 2015: Latest polling reveals Tories and Labour on course to win the same number of seats - with the SNP holding the balance of power

    Election 2015: A dead heat between Mr Bean and Dick Dastardly!

    Lord Ashcroft reveals latest polling – and which character voters associate with each leader
    Audiences queue up for 'true stories told live' as cult competition The Moth goes global

    Cult competition The Moth goes global

    The non-profit 'slam storytelling' competition was founded in 1997 by the novelist George Dawes Green and has seen Malcolm Gladwell, Salman Rushdie and Molly Ringwald all take their turn at the mic