Virgin America Outlook
#32
Gets Weekends Off
Joined: Aug 2011
Posts: 171
Likes: 0
I think going to VX is a risk. Because its a start up, there is a big risk that it might not make it. But on the flipside, if it does make it, you are sitting pretty with some nice seniority.
I personally think VX will make it. They provide a superior product, and all my friends that have flown on them (as paying passengers) loved the experience. Maybe my views are skewed because my background is in hotels, and guests will pay a premium for better amenities, whereas airline passengers just want to the cheapest ticket.
to the OP, with the very little information you put out there, I would highly recommend you going to VX as opposed to sitting in the right seat of a regional. Even if it is, in the E190. At the very least, you will have time in a larger aircraft, and possibly a type on an A320. So if VX does go under, at least you will be more marketable. Besides, is a regional airline any more stable the VX??
Good luck. I would also take into account where you live. Commuting is for the birds.
I personally think VX will make it. They provide a superior product, and all my friends that have flown on them (as paying passengers) loved the experience. Maybe my views are skewed because my background is in hotels, and guests will pay a premium for better amenities, whereas airline passengers just want to the cheapest ticket.
to the OP, with the very little information you put out there, I would highly recommend you going to VX as opposed to sitting in the right seat of a regional. Even if it is, in the E190. At the very least, you will have time in a larger aircraft, and possibly a type on an A320. So if VX does go under, at least you will be more marketable. Besides, is a regional airline any more stable the VX??
Good luck. I would also take into account where you live. Commuting is for the birds.
#34
Beech,
I have been at VX for about a year and a half. I would say my personnel experience here has been very positive. In three months I was off reserve, my hard lines since have never had less than 17-18 days off unless I wanted to pick something up, I received three weeks of vacation year two, I stay at good hotels and the flying is relaxed. Except for the obvious pay/benefit issues that we are fighting with, I really love my job. I couldn't recommend it enough.
From a long term business standpoint it's a bit foggy, but I will give you the best info I have right now. We currently have 46 aircraft and by about June of this year we will have 52. There, we will be pausing for just over a year before our new order of aircraft start to arrive. When that order of (60) sharklet equipped and then neo airbus start to arrive we will be receiving about one a month until we have about 113 total aircraft. That number might swing a little if we order more at some point or decide we don't need the 319's anymore. (neo solves the range issue of the regular a320) It has been stated many times that our business plan calls for 100-150 narrow body jets. So don't expect us to ever grow to the size of a legacy carrier.
As to profitability. It has been stated by our CEO and Branson that all routes that are over 12-13 months old are operationally profitable. It has also been told to us that 50 aircraft was the size we needed to be in order to sustain profits. (I assume through economy of scale) We just received in late Dec 2011 a large capital infusion that has made us very liquid. More than we ever have been. With this new $150m infusion our CEO says we are positioning ourselves for a public offering. I believe that current target is in 2013. Our top line revenue remains strong despite our lack of being able to achieve free and clear profits. But when you look at what it costs to turn an a320 into a virgin America a320 it's easy to see how growth for us is really expensive. I have heard the CEO state that the he believes we are on track for a 70m operating profit for 2012. That is a pretty dramatic number and I have no idea what that will net us in terms of a real black number. So take it for what it's worth. In the short term we have been told that another raise has been approved for this year beyond longevity raises. I have no idea how much it will be. But they usually announce them in jan so hopefully we will hear soon. I'm sure that someone will post them to apc soon after they are made public. We are also in the process of working with the company on a major work rules rewrite. I have heard the conversation has been very positive. Hopefully that produces positive movement for our compensation package and qol as well. Right now I believe they plan to hire around 40 guys between now and June. That may be inaccurate though it's my own number based on deliveries and how many I know we have in training.
What does this mean for you? Or anyone else considering coming here?
I have no idea man. In this industry we could be out of business tomorrow. You gotta do what's right for you. I have been happy here and although some guys are looking for greener pastures. (mostly FedEx from what I hear) a lot of us are really happy here and are proud of what we do. So make the choice on as much info as you can gather. I hope it works out for the best for you. Thank you for your service!
Regards,
4
I have been at VX for about a year and a half. I would say my personnel experience here has been very positive. In three months I was off reserve, my hard lines since have never had less than 17-18 days off unless I wanted to pick something up, I received three weeks of vacation year two, I stay at good hotels and the flying is relaxed. Except for the obvious pay/benefit issues that we are fighting with, I really love my job. I couldn't recommend it enough.
From a long term business standpoint it's a bit foggy, but I will give you the best info I have right now. We currently have 46 aircraft and by about June of this year we will have 52. There, we will be pausing for just over a year before our new order of aircraft start to arrive. When that order of (60) sharklet equipped and then neo airbus start to arrive we will be receiving about one a month until we have about 113 total aircraft. That number might swing a little if we order more at some point or decide we don't need the 319's anymore. (neo solves the range issue of the regular a320) It has been stated many times that our business plan calls for 100-150 narrow body jets. So don't expect us to ever grow to the size of a legacy carrier.
As to profitability. It has been stated by our CEO and Branson that all routes that are over 12-13 months old are operationally profitable. It has also been told to us that 50 aircraft was the size we needed to be in order to sustain profits. (I assume through economy of scale) We just received in late Dec 2011 a large capital infusion that has made us very liquid. More than we ever have been. With this new $150m infusion our CEO says we are positioning ourselves for a public offering. I believe that current target is in 2013. Our top line revenue remains strong despite our lack of being able to achieve free and clear profits. But when you look at what it costs to turn an a320 into a virgin America a320 it's easy to see how growth for us is really expensive. I have heard the CEO state that the he believes we are on track for a 70m operating profit for 2012. That is a pretty dramatic number and I have no idea what that will net us in terms of a real black number. So take it for what it's worth. In the short term we have been told that another raise has been approved for this year beyond longevity raises. I have no idea how much it will be. But they usually announce them in jan so hopefully we will hear soon. I'm sure that someone will post them to apc soon after they are made public. We are also in the process of working with the company on a major work rules rewrite. I have heard the conversation has been very positive. Hopefully that produces positive movement for our compensation package and qol as well. Right now I believe they plan to hire around 40 guys between now and June. That may be inaccurate though it's my own number based on deliveries and how many I know we have in training.
What does this mean for you? Or anyone else considering coming here?
I have no idea man. In this industry we could be out of business tomorrow. You gotta do what's right for you. I have been happy here and although some guys are looking for greener pastures. (mostly FedEx from what I hear) a lot of us are really happy here and are proud of what we do. So make the choice on as much info as you can gather. I hope it works out for the best for you. Thank you for your service!
Regards,
4
Thanks so much for that! Great info! Yeah I wish I had a crystal ball that actually worked! From what I've seen and read, VX has a great product no doubt. There's still a few things I need to wait and see where I'm at, to see how it turns out. In any case, I think it has a decent chance of making it contingent upon the economy.., whet else is new right? Thanks again, take care.
#35
I think going to VX is a risk. Because its a start up, there is a big risk that it might not make it. But on the flipside, if it does make it, you are sitting pretty with some nice seniority.
I personally think VX will make it. They provide a superior product, and all my friends that have flown on them (as paying passengers) loved the experience. Maybe my views are skewed because my background is in hotels, and guests will pay a premium for better amenities, whereas airline passengers just want to the cheapest ticket.
to the OP, with the very little information you put out there, I would highly recommend you going to VX as opposed to sitting in the right seat of a regional. Even if it is, in the E190. At the very least, you will have time in a larger aircraft, and possibly a type on an A320. So if VX does go under, at least you will be more marketable. Besides, is a regional airline any more stable the VX??
Good luck. I would also take into account where you live. Commuting is for the birds.
I personally think VX will make it. They provide a superior product, and all my friends that have flown on them (as paying passengers) loved the experience. Maybe my views are skewed because my background is in hotels, and guests will pay a premium for better amenities, whereas airline passengers just want to the cheapest ticket.
to the OP, with the very little information you put out there, I would highly recommend you going to VX as opposed to sitting in the right seat of a regional. Even if it is, in the E190. At the very least, you will have time in a larger aircraft, and possibly a type on an A320. So if VX does go under, at least you will be more marketable. Besides, is a regional airline any more stable the VX??
Good luck. I would also take into account where you live. Commuting is for the birds.
Quality of life where I'm at currently is not given an ounce of consideration what so ever lol. It is what it is, someday maybe.
#36
On Reserve
Joined: Jan 2008
Posts: 115
Likes: 1
Given the choice of riding on VX or any other airline (domestic service), I would choose VX if the price was the same. However, me and most other Americans are unwilling to pay much of a premium for domestic service. IMHO, VX's only hope for a stable future is if they ultimately become part of an alliance which offers international connecting service.
#37
Gets Weekends Off
Joined: Nov 2009
Posts: 236
Likes: 0
From: A320
I think that is exactly what you will see. Just like JetBlue. Especially now that we are on the sabre system. Expect code share with international carriers relatively soon. I know that was one of the big talking points by the company. Now is that going to be the thing that pushes us into the black? Meh? I think it will be part of the total solution. Other parts will be the slowing of growth for a bit to allow routes to mature. A public offering to reduce debt liability. Generally speaking, junior workforce. Probably a few more things that don't come to mind as well. Will it be enough? I hope so. But really who knows. If fuel remains where it has for the last couple months I think it will be a pretty good year.
#38
Given the choice of riding on VX or any other airline (domestic service), I would choose VX if the price was the same. However, me and most other Americans are unwilling to pay much of a premium for domestic service. IMHO, VX's only hope for a stable future is if they ultimately become part of an alliance which offers international connecting service.
Pea
#39
Banned
Joined: Jan 2012
Posts: 623
Likes: 0
From: DAL
Thread
Thread Starter
Forum
Replies
Last Post



