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John Osborne started his aviation career with British Caledonian as general manager commercial planning. After setting up Transair, Osborne's next move was to GB Airways, which now operates under a British Airways' (BAB) franchise, where he was managing director for six and a half years. He took up his post as Virgin Express managing director in October 1999. John Osborne spoke to C/R News European editor Jane Archer.
Q. Virgin Express was started in April 1996 but it is struggling to make money. Why?
A. We made money up to the last quarter of 1999, but we have been hit by the price of fuel, which has more than doubled, and by the fall in the value of the euro. At the beginning of the year one euro was worth US$1.15. Now it is worth US$0.91. We have 21 aircraft on lease in dollars, our fuel is paid for in dollars and so is some of our maintenance. If the exchange rate was the same as last year we would be making money.
Q. What were your latest results? When do you expect the airline to make a profit?
A. We lost US$20 million in the last quarter of 1999, which helped us to a year-end loss of US$13 million. This year will be worse, although the second quarter loss was smaller than the first three months. I have been tasked with turning the business around in two years from joining in October 1999.
Q. The high cost of operating from Brussels has been singled out as a key problem for the airline. Do you agree? Do you have any plans...