Matteo;Strategicaly Virgin has done well since its inception....

Matteo;

Strategicaly Virgin has done well since its inception. Staring out as a LCC when times where good and implementing gradual changes and service standards to cater for the full service sector.

Not all full service airlines do well during tough times, if their routes are for destinations where there has been a sharp economic downturn then this may see a reduction in business travellers or the need for the companies or corporate sector to downgrade the passengers travel mode from business to enonomy on the outbound leg. This is happening.

Moreover if that destination is a tourist area it may see a resuregence from the price inelastic end of the market and capacity can be increased to cater for it.

Airlines are currently rethinking their routes and reconfiguring their aircraft to maximise revenue.