**London**: Shai Weiss returns from the Necker Summit, where Virgin Atlantic’s future was discussed amid financial recovery after the pandemic. Weiss reflects on the company’s challenges, including staff layoffs, partnerships, and his personal cancer journey, emphasising resilience and ongoing transformation in a competitive market.
Shai Weiss, the chief executive of Virgin Atlantic, recently returned from the annual Necker Summit, held at Richard Branson’s private island in the Caribbean. This gathering, attended by senior executives from Delta Air Lines—Virgin Atlantic’s majority owner—serves as both a strategic retreat and a platform for shareholders to discuss the airline’s future direction.
In an interview with the Financial Times, Weiss commented on the nature of the summit, stating, “There are formal presentations, and yes there is pressure. But forging, cementing and strengthening our partnership is not just done in a meeting room. It is also done playing [the dice game] Perudo after dinner.” Weiss noted that while Branson often emerges victorious in these games, there are occasional surprises.
The timing of this year’s summit was particularly significant, occurring shortly after a power outage caused a day-long closure at Heathrow Airport, Virgin Atlantic’s primary hub. This incident raised concerns over the airport’s electrical systems, prompting discussions about substantial investments potentially amounting to £1 billion to bolster its resilience.
Despite these challenges, Virgin Atlantic emerged from the summit in a stronger financial position, reporting its first profit since 2016—a modest £20 million before exceptional items. This financial turnaround comes in the wake of a tumultuous period where the airline faced near bankruptcy during the COVID-19 pandemic, compounded by the UK government’s decision to refrain from providing support that was extended to other airlines. Weiss also personally endured significant health challenges, having been diagnosed with cancer in 2022; he is currently in remission and describes the overall journey of both the airline and himself as one “from crisis to triumph.”
Born in Israel, Weiss has adopted a charismatic style, often seen in a suit paired with trainers. He rose through the ranks within the Virgin Group, beginning his tenure there in 2012 and assuming the role of chief executive in 2019. Weiss employed traditional corporate strategies to restore Virgin Atlantic’s profitability, focusing on cost-cutting measures that he claims resulted in £300 million in permanent annual savings.
However, the company has faced scrutiny over its handling of staff layoffs, with over 4,000 positions cut, equating to a 45% reduction in workforce. While Weiss acknowledges that this was a difficult decision, he maintains that “the people are the red thread running through the business.” In a legal context, hundreds of cabin crew members pursued claims of unfair dismissal, focusing on age and gender discrimination. Though the tribunal ruled against their claims, it sided with them on related procedural issues, prompting Virgin Atlantic to appeal.
In an effort to adapt and thrive in a competitive landscape, Weiss has initiated partnerships, including joining the SkyTeam airline alliance, thereby increasing passenger traffic for Virgin Atlantic’s long-haul services significantly. He characterises this transformation as more enduring than a mere turnaround, stating, “A transformation is more enduring. It’s a fundamental change.”
As airlines worldwide experience a resurgence in passenger demand, some critics suggest that if Virgin Atlantic cannot achieve profitability under current conditions, it may struggle in the future. Weiss acknowledges this perspective, suggesting there is more to be done and emphasising the necessity for ongoing cost discipline. He highlighted a potential slowdown in transatlantic travel demand as a concern, noting, “We need to be lean and agile and quick to make decisions.”
In terms of competition, Weiss refrains from naming British Airways directly, though he acknowledges that the rivalry has shaped Virgin Atlantic’s approach. He remarked, “We make them better, and they absolutely make us better. Competition is something we thrive on. You know, we are the challenger, we are the underdog.”
Branson retains an active role in Virgin Atlantic, with Weiss describing him as a diligent contributor during their strategic meetings. Weiss detailed his day-to-day routine, which includes various leadership forums, engagement with employees, and personal interests outside of work.
Weiss’s battle with cancer has coloured his approach to leadership, as he openly communicated his diagnosis to his team and delegated responsibilities during his treatment. He emphasises that while there is no correct way to manage such a situation, for him, maintaining a connection to work provided a sense of purpose during challenging times.
Source: Noah Wire Services
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