Virgin Atlantic says Brexit to demote London; may move jets

Virgin Atlantic Airways will suffer a slump in demand if Britain exits the EU as international businesses desert London for major cities still inside the 28-nation bloc, according to Craig Kreeger, the carrier’s American CEO. A longer-term dip in sales might mean evaluating the case for exiting some markets and targeting entirely new ones, Kreeger said. Trans-Atlantic flights, which account for 70% of Virgin’s total capacity, could see bookings slide as US companies favour locations such as Paris and Frankfurt, which it doesn’t serve, the CEO said. “Most travel-intensive businesses -- consulting, banking, technology -- can make a pretty good argument that London right now is the center of Europe,” he said. “If Brexit has a risk that’s easy to understand, it’s the possibility that that center would move east to the larger European open market.” A victory for the “Leave” campaign in a referendum on June 23 would also prompt a further weakening of the pound, increasing costs for UK airlines that pay in dollars for fuel accounting for 40% of total expenses, Kreeger said Wednesday. “The long-term impact is whether the economy weakens in a way that makes it just too hard for more Brits to travel, particularly on long-haul vacations to the United States, which is kind of a big part of our business,” he said.<br/>