Search
Notices
Major Legacy, National, and LCC

Virgin Luv

Thread Tools
 
Search this Thread
 
Old 03-05-2014, 05:04 AM
  #1  
Gets Weekends Off
Thread Starter
 
Joined APC: Jun 2006
Posts: 1,423
Default Virgin Luv

So...... United and American didn't do too well defending their territories, let's see how the mighty SWA does.


Virgin America Plans Dallas Expansion: Airline Wants To Bring More Business-Friendly, Low-Fare Flight Competition To Dallas With New Flights From Love Field
Award-winning Airline Plans to Expand in the Big D with a Move to Love Field (DAL) and New Daily Nonstop Flights from DAL to LaGuardia (LGA), Washington National (DCA), Los Angeles (LAX), San Francisco (SFO) and Chicago O'Hare (ORD)
PR Newswire Virgin America
2 hours ago
SAN FRANCISCO, March 5, 2014 /PRNewswire/ -- Virgin America today announces plans to significantly expand its Dallas presence by operating new daily nonstop flights from Dallas' Love Field (DAL) to New York's LaGuardia Airport (LGA), Ronald Reagan Washington National Airport (DCA), Los Angeles International Airport (LAX), San Francisco International Airport (SFO) and Chicago O'Hare International Airport (ORD). In addition to adding new service from Love Field to major business destinations such as New York, Washington D.C. and Chicago, the airline plans to increase flights to current destinations (San Francisco and Los Angeles) from Dallas. Virgin America is seeking to secure two Love Field gates in order to expand flight options for Dallas travelers, as the airport's centralized location makes it a more convenient choice for Dallas-based and Dallas-destined business travelers. If successful, the airline would move its current operations from Dallas-Fort Worth International Airport (DFW) to Love Field in October 2014. Virgin America would be the only carrier at Love Field to offer guests three classes of service, WiFi, in-seat power outlets and touch-screen seatback entertainment (including live TV) on every flight. In addition, the airline operates a new fleet of Airbus A320-Family aircraft, which are significantly quieter than the commercial aircraft currently in use at Love Field[1].

Virgin America's ability to offer these new flights to Dallas travelers is contingent on obtaining two Love Field gates that are being divested by American Airlines as part of the U.S. Department of Justice (DOJ) settlement agreement resolving American Airline's merger with US Airways. As part of the merger settlement, DOJ required the divestiture of gates at several domestic airports to facilitate entry and expansion by low-cost airlines, where consumer competition could be negatively impacted by the unprecedented consolidation this latest merger represents. Virgin America's new flights from Dallas would provide vigorous competition in a market where at present one carrier controls 80 percent of the gates at Love Field (16 of 20 gates). Earlier this year, Virgin America invested in divestiture assets being sold as part of the merger settlement, including 12 airport slots at LGA (six slot pairs) and eight slots at DCA (four slot pairs), both airports where legacy carriers have historically dominated operations and where consumers have suffered from lack of service competition and higher fares as a consequence. With the planned divestiture of Love Field gates, Virgin America would be able to offer Dallas customers a competing network of flights to large business markets from Love Field.

"As the last major airline launched in the U.S., we've seen firsthand what happens when new entrant airlines have a chance to come into markets where a few big airlines dominate – service improves and fares drop. In response to the creation of now four 'mega-airlines,' the Justice Department has taken important steps to allow some new entrant competition at key airports in New York, Washington and Dallas," said Virgin America President and CEO David Cush. "The opening of access to these slot-constrained and gate-constrained airports is an infrequent occurrence at best, and we hope to have the opportunity to expand our network and continue doing what we do best: deliver the best product in the domestic skies, and inject sorely needed fare competition in business markets where it is currently lacking."

Launched in August 2007, Virgin America is a case study for how new entrant airline competition can directly improve fares and service for consumers. When Virgin America entered the SFO-Chicago O'Hare (ORD) market in 2011 and the SFO-Dallas market in 2010, fares dropped in each market at the time by more than 30 percent. In 2013, after years of trying to secure access at the slot-controlled Newark Liberty International Airport (EWR), the carrier launched flights from SFO and LAX to EWR. Before the airline entered the EWR market in April 2013, those routes had some of the highest fares in the nation, and one route – SFO-EWR – was monopoly controlled by a single airline. After Virgin America entered EWR, fares dropped by more than one-third, and travelers headed to California from one of the biggest business-travel airports in the nation had access for the first time to guaranteed WiFi, power outlets and live TV on every flight.

"Dallas is a major economic center, and as such, it deserves more business-friendly flight competition from the airport closest to the Central Business District," added Cush. "The opportunity to expand our low-fare, upscale service in Dallas, allows us to not only spur fare competition for local consumers, but also provide business travelers with more choice and consistent flight options, so they can stay connected, comfortable and productive on these longer-haul flights."

The Love Field plans would significantly expand Virgin America's presence in Texas, which now consists of three daily nonstop flights from both LAX and SFO to DFW as well as its popular SFO-Austin flights. In addition, the new routes would expand the airline's presence in both Washington D.C. and the New York area. The carrier will be only the second low-cost airline to serve all three major New York-area airports. Virgin America has built a loyal following of bi-coastal flyers with its nonstop flights from LAX and SFO to New York's John F. Kennedy International Airport (JFK) and EWR.

Virgin America's service to and from DAL would begin from October 2014, after the expiration of the Wright Amendment, which has restricted flights at Love Field since 1979. The airline would plan to operate daily nonstop flights from October 2014 and would announce full schedules for the following routes should the Love Field gates be approved:

DAL to LGA (four roundtrip flights a day).
DAL to DCA (four roundtrip flights a day).
DAL to LAX (three roundtrip flights a day, expanding to four in 2015).
DAL to SFO (three roundtrip flights a day, expanding to four in 2015).
In addition, the airline would add two roundtrip flights a day from DAL to Chicago O'Hare in early 2015.

Virgin America reported profitable financial results and industry-leading margin growth in the second and third quarters of 2013. The airline is slated to take delivery of 10 new Airbus A320-Family aircraft in 2015 and 2016. As the only airline headquartered in California, Virgin America serves nine of the top 10 business markets from SFO and eight of the top 10 business markets from LAX.

Virgin America is the U.S. domestic airline known for its inventive service and three beautifully designed classes of service – including an international-grade First Class cabin. The airline has swept the major travel awards since its 2007 launch, including being named "Best Domestic Airline" in both Conde Nast Traveler's Readers' Choice Awards and Travel + Leisure's World's Best Awards for the past six years. Virgin America's Red™ in-flight entertainment platform offers guests their own seatback touch-screen TV, with 25 films, live TV, Google Maps, videogames, a 4,000 song library and an on-demand menu, which allows flyers to order a cocktail or snack from their seatback any time during a flight. In addition to a Main Cabin that offers custom-designed leather seating with a deeper, more comfortable pitch, the airline's First Class offers plush white leather seating with 55 inches of pitch, 165 degrees of recline and lumbar massagers. The carrier's Main Cabin Select option offers 38-inches of pitch, free food and cocktails, an all-access pass to media content, dedicated overhead bins and priority check-in/boarding.

Photos of Virgin America's unique aircraft can be seen here.

Broadcast quality video b-roll can also be downloaded here.
putzin is offline  
Old 03-05-2014, 05:49 AM
  #2  
Gets Weekends Off
 
gvinflight's Avatar
 
Joined APC: Sep 2011
Position: V1. No turning back now.
Posts: 442
Default

This oughta be fun to watch...
gvinflight is offline  
Old 03-05-2014, 06:32 AM
  #3  
Gets Weekends Off
 
MaxPowers's Avatar
 
Joined APC: Oct 2010
Posts: 127
Default

Yep. Of course, Legend tried something similar at DFW against AMR. Offering a more luxurious product. It didn't work for them competing against a Legacy with other classes of service available, but it may work better competing against SWA for high-fare travelers willing to pay more to get away from SWA's cattle-car interior.

SWA obviously had a chance to look over AAI's numbers, and decided to stay with one-class service. Whether or not that was the best decision will remain to be seen . . . Looks like VA sees an opportunity to exploit that decision out of DAL. . . . If it works, they may cherry-pick other SWA strongholds, as well.
MaxPowers is offline  
Old 03-05-2014, 07:19 AM
  #4  
Gets Weekends Off
 
Joined APC: Nov 2013
Position: Jet
Posts: 214
Default

Originally Posted by MaxPowers View Post
Yep. Of course, Legend tried something similar at DFW against AMR. Offering a more luxurious product. It didn't work for them competing against a Legacy with other classes of service available, but it may work better competing against SWA for high-fare travelers willing to pay more to get away from SWA's cattle-car interior.

SWA obviously had a chance to look over AAI's numbers, and decided to stay with one-class service. Whether or not that was the best decision will remain to be seen . . . Looks like VA sees an opportunity to exploit that decision out of DAL. . . . If it works, they may cherry-pick other SWA strongholds, as well.
This is 100% a business decision for VA....not a snipe at SWA. Everything aligns for this move by VA in that they had to come up with a plan for the distance restricted slots from DCA and LGA. Consolidating the current SFO and LAX flights from DFW to Love Field along with the LGA, DCA, and ORD flights is a great move for them and makes sense. Now they have to get the gates.
Bugaboo is offline  
Old 03-05-2014, 07:23 AM
  #5  
ULTP-Ultra Low Tier Pilot
 
The Juice's Avatar
 
Joined APC: Dec 2007
Posts: 3,228
Default

Originally Posted by MaxPowers View Post
Yep. Of course, Legend tried something similar at DFW against AMR. Offering a more luxurious product. It didn't work for them competing against a Legacy with other classes of service available, but it may work better competing against SWA for high-fare travelers willing to pay more to get away from SWA's cattle-car interior.

SWA obviously had a chance to look over AAI's numbers, and decided to stay with one-class service. Whether or not that was the best decision will remain to be seen . . . Looks like VA sees an opportunity to exploit that decision out of DAL. . . . If it works, they may cherry-pick other SWA strongholds, as well.
Legend and Virgin are not fair comparisons in this example.

Legend was forced to try and make money flying DC9s with a seating capacity of ERJ 145. They were selling a luxury product to passengers, and it just didnt work. Virgin is an airline that can now operate out of Love without the Wright Amendment as an obstacle.

If anything, I would say that LUV will be the thorn in American's side. American Airlines has had a free pass in DFW for 30 years because of the INSANE Wright Amendment. Thank God that it is finally done
The Juice is offline  
Old 03-05-2014, 07:34 AM
  #6  
Gets Weekends Off
 
Joined APC: Sep 2006
Position: SWA F/O
Posts: 145
Default

Originally Posted by The Juice View Post
Legend and Virgin are not fair comparisons in this example.

Legend was forced to try and make money flying DC9s with a seating capacity of ERJ 145. They were selling a luxury product to passengers, and it just didnt work. Virgin is an airline that can now operate out of Love without the Wright Amendment as an obstacle.

If anything, I would say that LUV will be the thorn in American's side. American Airlines has had a free pass in DFW for 30 years because of the INSANE Wright Amendment. Thank God that it is finally done.
Good post - agree that Legend and Virgin are worlds apart.
MWright is offline  
Old 03-05-2014, 07:48 AM
  #7  
Gets Weekends Off
 
Joined APC: Jun 2007
Position: CA
Posts: 1,207
Default

Originally Posted by Bugaboo View Post
Now they have to get the gates.
That is the big question isn't it. The DOJ has said that only LCC's will be allowed to bid for those gates specifically mentioning SWA, Virgin, Spirit, JetBlue and Frontier as LCC's. If SWA is allowed to participate in the auction it sure seems that they have a lot more at stake than any of the others and that will probably directly influence what they are willing to bid in order to secure 18 of the 20 gates at Love.

I think any of the above mentioned airlines could begin profitable service out of Love, the question is will they be willing to outbid SWA considering the fact that SWA wants to grow DAL post Wright Amendment and it seems that keeping competition out will be a goal as well. It will be interesting to watch for sure.
shoelu is offline  
Old 03-05-2014, 08:09 AM
  #8  
veut gagner à la loterie
 
forgot to bid's Avatar
 
Joined APC: Apr 2008
Position: Light Chop
Posts: 23,286
Default

SWA will fry VA like a box of kittens.
forgot to bid is offline  
Old 03-05-2014, 08:16 AM
  #9  
Gets Weekends Off
 
Joined APC: Jan 2008
Position: erb
Posts: 646
Default dammmitt.

Originally Posted by forgot to bid View Post
SWA will fry VA like a box of kittens.
Beer all over my screen...again. Cheers H
Herman is offline  
Old 03-05-2014, 08:25 AM
  #10  
Gets Weekends Off
 
CanoePilot's Avatar
 
Joined APC: Jun 2012
Posts: 1,166
Default

Not that many hipsters in Dallas that can fill all those flights.

If anything, I would say that LUV will be the thorn in American's side. American Airlines has had a free pass in DFW for 30 years because of the INSANE Wright Amendment. Thank God that it is finally done
How is it insane? "Luv" could have moved their herb turds to DFW and flown outside of texas like every other airline, they did it to themselves.
CanoePilot is offline  
Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
Two-percent
Major
73
12-19-2012 05:35 PM
OAKLAND
Major
100
10-04-2012 07:00 AM
4andCounting
Major
0
05-25-2011 12:42 PM
Moose
Major
67
04-07-2009 08:32 AM
NGINEWHOISWHAT
Major
4
02-22-2007 11:04 PM

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



Your Privacy Choices