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Virgin to launch India flights in new challenge to British Airways

Virgin Atlantic Airways Limited is set to fly into India next month with a twice-weekly service, setting the stage for a battle royal over the subcontinent's skies with arch rival British Airways plc.

"The first Virgin flight to India will be on July 6, operating between London-Delhi-London. Our fares will be competitive. We are planning to offer an introductory fare," Mackenzie Grant, Virgin Atlantic's general manager for India said.

He said the initial fare was still being worked out and it would be difficult to give a comparison with competing airlines.

Virgin plans to launch a third weekly flight to Delhi around October. "We would like to have the opportunity of operating six flights a week to India," Grant said.

Virgin Atlantic will initially make use of Air India's unutilised route entitlements between India and Britain as part of a pact signed earlier this year which allows the British carrier to fly up to three times a week to the country.

Air India is entitled to fly 16 flights per week between India and Britain under a deal between the two countries, but the airline has not been using its full rights.

On the other hand, British Airways has been operating all 16 flights given to British carriers under the agreement, leaving no room for Virgin.

Virgin has overcome that hurdle with its code share pact with Air India, a toehold to carry on its David versus Goliath battle in the skies, according to industry insiders.

They said Virgin was likely to give British Airways some stiff competition, not only in terms of fares, but also with its array of services such as sleeper seats, massage services and lounge facilities.

"Virgin's entry will certainly be a boost to services between India and Europe. The airline has a high quality product," said Kiran Rao, president of Airbus Industries' India office.

Industry officials said a severe shortage of air capacity currently between India and major European cities might mean passenger demand was enough to fill the capacities offered by both the airlines.

However, the Indian government has after a period of several years started the process of negotiating new aviation deals with other countries, significantly expanding capacity in the market.

If a new aviation deal is signed between India and Britain, competition between the two airlines is likely to escalate dramatically.

British Airways has for a long time been seeking to increase its India flights to 22 because of heavy passenger demand.

A British Airways spokeswoman calmly greeted the news of Virgin's scheduled entry. "We welcome it," she insisted.

Virgin's Grant said the airline would seek to expand the market by targeting both business and leisure travellers.

Airline representatives expect the fireworks to start immediately the first Virgin flight touches down in India with boss Richard Branson on board.

Virgin's India general sales agent Subhash Goel said the British billionaire would be accompanied by British tour operators and media representatives.

The last time he was in India, Branson rode an elephant called "Virgin Jumbo" to a news conference to announce the airline's entry to India.