Financial News

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Sir Richard Branson's airline Virgin Atlantic is to cut back on some services this winter with the possibility of 600 jobs being lost.

Virgin said it was not operating its Heathrow-Chicago daily service for the winter 2009/10 season and suspending one of its two daily services between Heathrow and Hong Kong.

It added there would be additional frequency reductions on some other routes throughout the winter, with the total capacity reduction being 7% compared with winter 2008/09.

Virgin said that as a result of lower demand, it would need to reduce staff numbers and would shortly start consultations with staff "about the possibility of up to 600 redundancies across the business".

The airline said: "We are keeping our staff fully informed and will be working closely with staff and union representatives in order to find ways to protect as many jobs as possible and avoid compulsory redundancies."

Virgin Atlantic chief executive Steve Ridgway said: "The outlook for the industry is as bleak as ever and all airlines are having to shrink their businesses.

"The fittest will survive and be in a stronger position when the economy grows.

"We will look to minimise the number of compulsory redundancies and ensure we treat our staff as fairly as possible."

Earlier, British Airways also announced changes to its winter 2009/10 programme.

BA's Gatwick to Rome services are being reduced from two a day to one, while reductions from Heathrow include Brussels from seven to six flights a day; Paris (Charles de Gaulle) from 10 to nine, Nice and Berlin from six to five and Edinburgh from 11 to 10.

But Heathrow-Warsaw and Heathrow-Istanbul frequencies will increase from two a day to three, while Heathrow-Rome rises from five a day to six.