UK Airways to sell airline cabin services for $300m
A new report from the Aviation News, an aviation publication, claims UK Airways has signed an agreement with Virgin America to sell the cabin service that is a key part of the airline’s business.
It is a deal that will allow the airline to reduce its costs, the report said.
The deal, which will be announced at a conference on Monday, is valued at $300 million.
Virgin America, which was bought by Delta in July, has been selling cabin services to airlines in the US and Canada since 2007.
Airlines have been increasingly focusing on cheaper, less-restrictive cabin services that allow them to use their aircraft more cheaply and provide better amenities to passengers.
However, a recent report from analysts at consultancy Ovum found that cabin services had fallen in demand for two reasons.
First, passengers are paying more for flights that allow for more frequent cabin changes.
Second, cabin services were becoming increasingly fragmented into multiple services that cost airlines more money.
Virgin’s move to sell cabin services, however, will give it more flexibility and give it a broader portfolio of service offerings to choose from.