Originally Posted by
Flyby1206
Ok, VX isnt trying to run anyone out of business and they do have a nice onboard product. So why arent they making any money?
And dont try to argue that UAL is beating up VX so badly that they cant survive. Look at NK and their success, despite all the legacy competition.
NK is an entirely different business model with 178 seats in a A320 and 145 in an A319. Lot more seats than their competition on the same plane allows them to sell more seats at a very low ticket price, filling up almost every seat. Plus, I'm sure you're aware of their industry leading onboard and bag charges. 33% of NK revenue is from ancillary fees.
UA has beefed up the competition more this year than any years prior with VA. Also not helping is the fuel cost. Flying a significant amount of transcontinental flying means less room to recover from high gas prices that you could from shorter hops.
VA has continuously expanded year over year with lots of aircraft and markets. Now, for the first time, VA sill slow its growth. They get just 1 airplane in the next 12 months, and are focusing on getting the most out of our destinations and letting markets mature. The upcoming quarters should be better year over year.