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selecta · Member Joined: 24 Dec 2006 Posts: 813 Location: ORD

Virgin Atlantic's Ridgway Balances Profit,
Innovation And Keeps the Planes on Time

By DANIEL MICHAELS
July 30, 2007; Page B1

Sir Richard Branson is the founder, chairman and brash public face of British carrier Virgin Atlantic Airways Ltd. But Chief Executive Steve Ridgway is the one who quietly keeps the airline running.

From Virgin's founding in 1984 with a promise to be a different kind of airline, it has grown into one of the world's most unusual carriers. It flies only long routes and offers more amenities than most rivals. Its "Upper Class" premium cabin -- a blend of first- and business-class -- grabs attention with innovations like inflight manicures and complimentary limo rides to and from airports.

The family of brands in Sir Richard's Virgin Group -- from music stores to cola to cellphones -- all are presented with an air of hipness and iconoclasm. Mr. Ridgway, once a designer of ocean-racing yachts and a championship racer, must deliver that image to passengers aboard Virgin Atlantic.

In the me-too airline industry, balancing originality and profitability is tough. Carriers need to squeeze as many people as possible onto a plane, and charge the highest fare possible. Countless airlines have failed trying to boost service while cutting prices.

On Aug. 8, Virgin Atlantic gets a new sibling, Virgin America, which will connect San Francisco, Los Angeles and Las Vegas with New York and Washington, D.C. The two carriers are separate companies but will cooperate carrying connecting passengers. Like Virgin Atlantic, Virgin America promises innovations that it says will offer superior service for low fares.

With the prospect of rising competition across the Atlantic next year, thanks to partial deregulation of the market, Mr. Ridgway talked with The Wall Street Journal about airline branding and management. Excerpts:

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