Originally Posted by
Dised101
VIRGIN AMERICA LAUNCHES 2010 GROWTH PLANS; SUMMER EXPANSION TO ORLANDO, TORONTO
Airline Grows Fleet; Announces New Service to Orlando and Intent to Serve Toronto This Summer
San Francisco – March 18, 2010 – Virgin America today announces network expansion plans that position the new airline for strong growth in 2010 and beyond. Today, Virgin America announces it will serve Orlando International Airport (MCO) with daily nonstop flights from both Los Angeles International Airport (LAX) and San Francisco International Airport (SFO) beginning August 19, 2010. Additionally, the airline announces its intent to serve Toronto Pearson International Airport (YYZ) with daily flights from both LAX and SFO as early as June 2010. Coming on the heels of the Company’s new Department of Transportation-approved ownership structure, Virgin America is poised for major growth in 2010 – with six additional aircraft entering its fleet this year and three additional aircraft scheduled for the first quarter of 2011. By this time next year, the airline’s fleet will have grown by almost one-third.
In just a couple of years, VA has grown larger than Spirit, and is poised to move into our domestic network. Also...VA is planning on 12 new aircraft a year for the next few years.
Southwest Airlines has already publically stated that they want to move into the Carribean.
AirTran is already moving forward on thier growth plans.
Even Sun Country is expanding to London!
It seems like all of our competition is planning growth.....and what is the response from Spirit.....one new route.
Spirit may be in trouble if they do not respond. Makes you really wonder what is going through the minds of our management.
This is exactly why I believe Indigo/Oaktree is eventually plotting for a possible sale of the airline
IF an IPO is not possible. Everything NK is doing is about adding VALUE to the carrier. The Colombia routes are a huge deal because other carriers may want that authority. Keeping one frequency to Peru (Lima) is important also.
There are other carriers that may want some of what Spirit already has (A320 leases, international gate access in FLL, international routes, etc.) Nothing at this place shows me that they intend to grow the airline LONG term.
If you were gonna sell the airline, wouldn't it be in your interests to keep other airlines from acquiring some of the things you already have (like Colombian routes, etc). If those other carriers get the things you have, you lose your bargaining power to ask for a PREMIUM sale price. IOW, your airline no longer has something that is VALUABLE to others.
It is in Indigo/Oaktree's vested interests to keep VALUE in our carrier's operation. That's why you see them adding the 4 A320 aircraft this year. They can't afford a meltdown with the busy summer season and hurricane season if they have plans to either IPO or sell the company. Its about protecting their investment. It's NOT about growing the airline.