Dear Teammates:
As you have no doubt heard, our industry has had a very challenging week. Three scheduled carriers, ATA, Aloha, and Skybus, have filed for Chapter 11 bankruptcy protection and have ceased operations. The primary culprits in each, we believe, is high fuel prices and the lack of liquidity. Airlines are cash intensive companies and when the cash runs dry, there are not a lot of options.
Fortunately, at Virgin America, we have adequate liquidity to see us through these difficult times for our industry. However, like every other airline, we remain exposed to consistently high fuel prices. The best way of combating high fuel prices is to make sure that you have enough revenue coming in the door to pay the bill and that is where you come in. Our airline has distinguished itself by offering a great product and a pleasant flying experience. Cool airplanes and a great IFE are part of it but, ultimately, it comes down to the people who are delivering the service. By staying focused on delivering the best guest service that we possibly can, you are doing your part to make our company successful and to ensure that we come out of this turmoil on top.
We have an aggressive growth plan at Virgin America and we are not wavering from it. We will double the number of aircraft in service by the end of the year and hopefully add 20 more next year. We have a great company, a great product and a bright future.
Thanks
David