Virgin Atlantic Airways Announces First Canadian Flights; Toronto to London

FOR IMMEDIATE RELEASE      
CONTACT: SHARON POMERANTZ
(203) 750-2570

VIRGIN TO LAUNCH TORONTO - LONDON SERVICE

Norwalk, CT (December 1, 2000) - Sir Richard Branson, chairman of Virgin Atlantic Airways, announced today that the airline will launch non-stop scheduled services between Toronto and London beginning summer 2001.

Speaking in Toronto, Sir Richard said, Its long been my ambition to fly from Toronto, and I am thrilled to be able to announce our plans to launch a daily service between Toronto and London, Gatwick beginning next summer.

Toronto – London is an immensely popular route and completes Virgins presence on all top ten long haul routes from London. We estimate that the Virgin Atlantic service will provide an annual economic benefit to Toronto of more than Canadian $200 million in increased jobs, trade and tourism.

I look forward to announcing some competitive fares in the New Year, but the biggest difference passengers on this route will notice is the superior quality of our product. All our passengers will enjoy their own seat back TV screen with a choice of up to 41 channels of films, drama, sports and games. Business passengers will enjoy a range of innovations including complimentary limousines at both ends of each journey, stand up bars and inflight manicures and massages in the Upper Class cabin!"

Last year 1.3 million passengers traveled between Toronto and London (262,000 of whom traveled to or from Gatwick), making Toronto the fourth largest long haul route from London.

A celebratory launch fare will be available beginning January 2001. Daily flights will operate between Torontos Lester B. Pearson International Airport and Gatwick utilizing a Boeing 747 aircraft. This will be configured with 28 Upper Class seats, 36 Premium Economy and 358 in Economy.

There is a large market for leisure passengers on the route and Virgin Atlantics sister company, Virgin Atlantic Vacations, will offer Canadian travelers a full array of vacation packages from Toronto to London and other European destinations.

Sir Richard also commented on the Canadian aviation market, saying Since its take over of Canadian, Air Canada now holds a hugely dominant position in the Canadian aviation market – with around 80 percent of domestic flights and the majority of scheduled services between Toronto and London. We are relying on the regulators to protect the interests of consumers by keeping a close watch on Air Canadas behavior, particularly in setting the rates for connecting fares onward from Toronto."

Finally, Sir Richard highlighted the potential Canada holds for other Virgin developments. Virgin Atlantic is often the platform for other Virgin companies, and I hope that todays announcement is the first of many from the Virgin Group. We have a successful Megastore in Vancouver and are looking to open more in Canada in the near future. Were also actively considering the potential for other new ventures in areas such as mobile telephones.
Virgin Rail in the U.K. has already developed a fantastic relationship with leading Canadian conglomerate Bombardier, having awarded the company its biggest European train contract with a 1billion (Canadian $2 billion) deal for the construction of 78 high speed trains and their maintenance until 2012. With this happy precedent Im sure our experience in operating this very important route will be a rewarding one."

Virgin Atlantic is one of the one of the worlds most acclaimed carriers. For the third consecutive year, the airline was voted Best Transatlantic Airline" by Conde Nast Travelers readers and also received top honors in 2000 as Best of the Best" airlines by the Robb Report.

Virgin Atlantic Airways serves London from 10 U.S. gateways: New York (JFK), Newark, Los Angeles, Orlando, Chicago, San Francisco, Washington (Dulles), Miami, Boston and Las Vegas. From London, the carrier serves South Africa, Greece, Japan, Hong Kong, the Caribbean, China, India and Canada, effective summer 2001. For reservations and inquiries, please call your travel agent or Virgin toll-free at 800-862-8621, or visit the Virgin Atlantic web site at www.virgin.com.
For Canadian employment opportunities, check www.virgin-atlantic.com.

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