Cape Town Decision Completes Historic Year; From Partnership with Singapore Airlines to New Routes -- Las Vegas, Chicago, Shanghai, Dehli, Cape Town --.

Business & Travel Editors

NORWALK, Conn.--(BUSINESS WIRE)--Dec. 27, 1999

Richard Branson, chairman of Virgin Atlantic Airways, welcomed the airline's award of a second weekly frequency between London and Cape Town by the Civil Aviation Authority. He said:

"It is exactly a year to the day since the CAA made its landmark decision to grant Virgin Atlantic the right to launch the first-ever scheduled British service between London and Shanghai. In the twelve months since then, we launched services to Shanghai on May 22, Chicago on November 1 and Cape Town on December 3.

"In the last two weeks alone, we've secured a breakthrough agreement with Air India, which allows Virgin Atlantic to start flights to Delhi next summer. And, last Monday the U.S. government gave its approval to start the first-ever direct scheduled service between Las Vegas and London, while on the same day we secured Virgin's strategic and financial future with our historic partnership with Singapore Airlines.

"Just when I thought it couldn't get any better the CAA has awarded us an additional frequency between London and Cape Town. Cape Town is an important route for Virgin Atlantic with a huge tourist market and an increasingly significant business community. Gaining an extra flight means Virgin can compete more effectively on this route, and in turn provide passengers with the benefits of increased competition. Ultimately, we are aiming for a daily service to Cape Town."

Virgin Atlantic started weekly flights from Heathrow to Cape Town using a 747-400 on December 3rd. With the new flight introduction on January 28, both Cape Town services will be operated by an Airbus A340.

The additional flights to Cape Town will depart at 5:00pm on Sundays and will depart Cape Town at 9:20am on Mondays. The existing service also departs London at 5:00pm on Fridays and departs Cape Town at 9:20am on Saturdays.

With this additional Cape Town service, Virgin Atlantic will increase its Johannesburg route capacity on Sundays and Mondays via a Boeing 747-400 and will utilize an Airbus A340 for the remainder of the week.

Virgin Atlantic is one of the world's most-acclaimed carriers. Virgin was named "Best Transatlantic Airline" by Travel Weekly for the 11th consecutive year, from 1988 to 1999. OAG/Executive Travel also selected Virgin as "Best Transatlantic Airline" in 1999. In 1998, the airline won the Freddie Award for "Best International Frequent Traveler Program" by InsideFlyer, and Upper Class was voted "Best Transatlantic Business Class" by the readers of Conde Nast Traveler. Upper Class has also been recognized by OAG magazine for ten years as the "Best Business Class," receiving this award again in 1999. And in 1999, OAG also named Virgin's economy service as "Best Long Haul Economy Class." Virgin received similar honors as "Best Transatlantic Coach Class" from 1996 to 1998 by Entrepreneur magazine and by the esteemed Egon Ronay critics in 1998.

Virgin Atlantic services London from nine U.S. gateways: three times daily from New York (JFK); twice daily from Newark, Los Angeles and Orlando; and daily from Chicago, San Francisco, Washington (Dulles), Miami and Boston; and twice weekly from Las Vegas starting June 8, 2000. From London, the carrier serves South Africa, Greece, Japan, Hong Kong, the Caribbean, Shanghai and India, starting summer 2000. For reservations and inquiries, please call Virgin toll-free at [phone], or visit the Virgin Atlantic website at www.virgin.com.