Virgin is to move into the domestic market for routes in and out of Heathrow - and that could spark a price war with British Airways.
Crawley based Virgin Atlantic has announced losses of £80 million for the last financial year.
A thousand new jobs will be created at Gatwick this summer as airlines launch a number of new routes from the Sussex airport
Virgin Atlantic's new boss Craig Kreeger says he has ordered a total review of the company and aims to turn the latest £93 million loss into a profit in the next two years.
ITV News Meridian spoke exclusively to Mr Kreeger about how he is looking to turn the company's losses around.
The new Chief Executive of Virgin Atlantic from Kent says he has made 'difficult decisions' as he tries to turn around the company's losses.
The new boss says the Government must act to reduce air tax and he backs a new runway at Heathrow over a new hub in the Thames Estuary.
A full review of the company is underway and action has been taken to reduce fuel costs and take a fresh look at all contracts.
The new Chief Executive of Virgin Atlantic, who lives near Ashford, Kent, has said he will have to freeze staff pay in order to control losses.
Craig Kreeger has previously spent 27 years with rival American Airlines and will replace Steve Ridgway who retired earlier this year.
The 9,000 staff at Virgin are mostly based at Heathrow and Gatwick will face a pay freeze because of rising fuel costs.
Mr Kreeger has praised worker for their dedication to the company at a difficult time and says high quality services is still a top priority.
Delta Air Lines and Virgin Atlantic Airways have reached an agreement for a new joint venture that will create an expanded trans-Atlantic network. The companies say it will enhance competition between the UK and North America, offering greater benefits for customers.
Delta will invest $360 million in Virgin Atlantic, acquiring a 49 per cent stake currently held by Singapore Airlines. Virgin Group and Sir Richard Branson will retain the majority 51 per cent stake and Virgin Atlantic Airways will retain its brand and operating certificate.
Sir Richard Branson is demanding more runways are built at Heathrow. He says it is the best option to solve the aviation crisis in the south east.
He says building a new airport in the Thames Estuary would lead to the closure of Heathrow and the loss of thousands of jobs in the Thames Valley.
He also has mixed views about the news HS2 rail scheme through Oxfordshire and Buckinghamshire.
He spoke to our Transport Correspondent Mike Pearse at the launch of a new route from Gatwick to Cancun in Mexico.
Virgin boss Sir Richard Branson claims plans for a new airport in the Thames Estuary would lead to the closure of Heathrow with devastating consequences.
The boss of the Crawley-based airline says he believes that would be wrong and that the Government must seriously consider expanding Heathrow.
The Government has ruled out a third runway at Heathrow and is about to publish a long awaited consultation on future aviation policy in the region.
He did it. At 61, Sir Richard Branson has become the oldest person to kitesurf across the English Channel. See our report here.