Virgin spins off vacation package division

NORWALK, Conn. -- Virgin Atlantic Airways spun off its vacation packaging division into a separate subsidiary owned by the airline's parent Virgin Ltd.

The name will revert to Virgin Vacations, as the division was called at its inception in 1994. It was later changed to Virgin Atlantic Vacations to associate it more closely with the airline.

The company will add the option of purchasing air-only tickets. It is in negotiations with other airlines to expand into routes not covered by Virgin. It also will expand into domestic U.S. packages using supplier relationships of the U.K.-based sister company Virgin Holidays, which sells U.S. packages to U.K. customers.

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