http://www.flightglobal.com/article...gin-america-signs-mou-for-up-to-60-a320s.html
FARNBOROUGH: Virgin America signs MoU for up to 60 A320s
By David Kaminski-Morrow
Virgin America has signed a memorandum of understanding for up to 60 Airbus A320s.
Its agreement, disclosed at the Farnborough Air Show, covers 40 firm and 20 optioned jets.
The aircraft would be delivered from 2013, says the carrier.
No engine selection has been given.
http://www.flightglobal.com/articles/2010/06/24/343674/virgin-america-shrinks-1q-losses.html
Virgin America shrinks 1Q losses
San Francisco-based Virgin America narrowed its losses year-over-year for the first quarter, posting a $35.5 million loss versus a $40.3 million loss for the year prior.
The carrier's operating loss for the first quarter of 2010 was $21.6 million, an improvement from the $31.6 million posted a year ago. In a statement outlining its first quarter financial performance Virgin America claims if fuel prices remained constant year-over-year, it would have generated an operating profit during the first quarter.
The average cost per gallon of fuel for Virgin America in the first quarter grew 72% year-over-year as it consumption increased 27%.
During the first three months of 2010 Virgin America hedged 70% of its fuel consumption, and for the remainder of the year has hedged 85% of its projected consumption at an average crude call strike of $85 per barrel.
The carrier posted a 46% rise in revenues during the first quarter to $146 million as unit revenues grew by 21% to 8.29 cents.
Virgin America's overall expenses increased 28% year-over-year driven largely by fuel costs. Its unit cost excluding fuel fell 11% to 6.43 cents.
While its operating margin remains negative, Virgin America did improve that line item by 16 points to negative 15%.
The carrier's traffic grew 31% during the quarter on 27% growth in scheduled capacity, which led to a 4 percentage point rise in load factor to 76%.
Carrier CEO David Cush says despite the rise in Virgin America's fuel costs, "our top line progress continues to exceed our expectations and we remain on track for full year operating profit in 2010".
Virgin America ended the first quarter with $28 million in restricted cash and total liquidity of $102 million.
http://www.flightglobal.com/article...n-america-seeks-approval-to-serve-mexico.html
Virgin America seeks approval to serve Mexico
By Dan Webb
Virgin America announced on 29 June it will file with the US Department of Transportation (DOT) for authority to begin flying to Mexico later this year from its Los Angeles and San Francisco focus cities.
The San Francisco-based carrier intends to fly to Cancun from Los Angeles and San Francisco, and also hopes to receive the authority to fly to San Jose Del Cabo from San Francisco.
"The nice thing about Mexico is that it helps balance out our network. There is strong traffic to these beaches in the first quarter which is our weakest quarter," Virgin America CEO David Cush told ATI today on a flight celebrating the launch of its new Toronto service.
Schedules in the Innovata database show that United currently flies to Cancun from San Francisco, and Delta, United, and Mexicana fly there from Los Angeles. Alaska Airlines recently ceased service on 6 June.
"I think that's more of a network strategy that Alaska has than any comment on the market," says Cush. "We've looked at the numbers, we think it will be successful." He notes that he thinks Alaska has been focusing on "redirecting their network to Hawaii".
The airline will face competition from Alaska Airlines and United Airlines on the San Francisco - Cabo route.
Cush explains that all of the routes have open route authorities and that "we're quite optimistic that we'll get approval for these and get them quickly".
The current bilateral agreement between the USA and Mexico only allows three American carriers to have authority for a route. There are currently three US Airlines - United, American, and Alaska - that are flying from Los Angeles to Cabo, for example.
According to a regulatory filing submitted to the DOT, Virgin America's proposed service from Los Angeles to Cancun and from San Francisco to Cabo will operate five times weekly. Flights from San Francisco to Cancun will run three times weekly.
FARNBOROUGH: Virgin America signs MoU for up to 60 A320s
By David Kaminski-Morrow
Virgin America has signed a memorandum of understanding for up to 60 Airbus A320s.
Its agreement, disclosed at the Farnborough Air Show, covers 40 firm and 20 optioned jets.
The aircraft would be delivered from 2013, says the carrier.
No engine selection has been given.
http://www.flightglobal.com/articles/2010/06/24/343674/virgin-america-shrinks-1q-losses.html
Virgin America shrinks 1Q losses
San Francisco-based Virgin America narrowed its losses year-over-year for the first quarter, posting a $35.5 million loss versus a $40.3 million loss for the year prior.
The carrier's operating loss for the first quarter of 2010 was $21.6 million, an improvement from the $31.6 million posted a year ago. In a statement outlining its first quarter financial performance Virgin America claims if fuel prices remained constant year-over-year, it would have generated an operating profit during the first quarter.
The average cost per gallon of fuel for Virgin America in the first quarter grew 72% year-over-year as it consumption increased 27%.
During the first three months of 2010 Virgin America hedged 70% of its fuel consumption, and for the remainder of the year has hedged 85% of its projected consumption at an average crude call strike of $85 per barrel.
The carrier posted a 46% rise in revenues during the first quarter to $146 million as unit revenues grew by 21% to 8.29 cents.
Virgin America's overall expenses increased 28% year-over-year driven largely by fuel costs. Its unit cost excluding fuel fell 11% to 6.43 cents.
While its operating margin remains negative, Virgin America did improve that line item by 16 points to negative 15%.
The carrier's traffic grew 31% during the quarter on 27% growth in scheduled capacity, which led to a 4 percentage point rise in load factor to 76%.
Carrier CEO David Cush says despite the rise in Virgin America's fuel costs, "our top line progress continues to exceed our expectations and we remain on track for full year operating profit in 2010".
Virgin America ended the first quarter with $28 million in restricted cash and total liquidity of $102 million.
http://www.flightglobal.com/article...n-america-seeks-approval-to-serve-mexico.html
Virgin America seeks approval to serve Mexico
By Dan Webb
Virgin America announced on 29 June it will file with the US Department of Transportation (DOT) for authority to begin flying to Mexico later this year from its Los Angeles and San Francisco focus cities.
The San Francisco-based carrier intends to fly to Cancun from Los Angeles and San Francisco, and also hopes to receive the authority to fly to San Jose Del Cabo from San Francisco.
"The nice thing about Mexico is that it helps balance out our network. There is strong traffic to these beaches in the first quarter which is our weakest quarter," Virgin America CEO David Cush told ATI today on a flight celebrating the launch of its new Toronto service.
Schedules in the Innovata database show that United currently flies to Cancun from San Francisco, and Delta, United, and Mexicana fly there from Los Angeles. Alaska Airlines recently ceased service on 6 June.
"I think that's more of a network strategy that Alaska has than any comment on the market," says Cush. "We've looked at the numbers, we think it will be successful." He notes that he thinks Alaska has been focusing on "redirecting their network to Hawaii".
The airline will face competition from Alaska Airlines and United Airlines on the San Francisco - Cabo route.
Cush explains that all of the routes have open route authorities and that "we're quite optimistic that we'll get approval for these and get them quickly".
The current bilateral agreement between the USA and Mexico only allows three American carriers to have authority for a route. There are currently three US Airlines - United, American, and Alaska - that are flying from Los Angeles to Cabo, for example.
According to a regulatory filing submitted to the DOT, Virgin America's proposed service from Los Angeles to Cancun and from San Francisco to Cabo will operate five times weekly. Flights from San Francisco to Cancun will run three times weekly.
