Virgin Awarded Love Field Gates

[DCMartin]

Looks like Virgin should get them:

http://www.wfaa.com/news/business/C...in-Americas-move-to-Love-Field-258562971.html

DALLAS -? Two sources from City Hall told News 8 that Dallas City Manager A.C. Gonzalez will approve Virgin America?s lease of two gates at Love Field.

Attorneys for the airline and the city are still working through fine print of the deal, sources said, but it will likely be announced on Friday.

Virgin America is sub-leasing the gates from American Airlines through 2028. American agreed to give up its Love Field gates in a settlement with the U.S. Department of Justice so it could merge with US Airways.

The Justice Department rejected offers from Southwest Airlines and Delta Airlines to take over the gates.

Last month, in a highly-publicized event, Virgin announced it would move its operations from D/FW Airport to Dallas Love Field though it didn?t yet have a signed agreement with American Airlines or the city of Dallas.

Virgin reached an agreement with American on Monday, according to Sir Richard Branson, founder of The Virgin Group.

Though the city manager made the decision, Gonzalez had the council briefed on the situation.

Dallas-based Southwest Airlines is still lobbying the city for the gates, though it does not have a deal under consideration.

Virgin pledged to add New York, Washington D.C., and eventually Chicago to the Los Angeles and San Francisco flights it already has at D/FW.

Branson even came to Dallas this week in a lobbying effort to help finalize the deal.

 

[redflyer65]

And why is American involved at all again?

Something doesn't sound right.

 

[DCMartin]

And why is American involved at all again?

Something doesn't sound right.

My guess is if AA released the gates they would go back to the city as common use as pointed out earlier. I'm thinking by sub-leasing them the lawyers aren't considering AA as technically releasing them. Just a guess though.

 

[FlyinGuy]

If you peek behind the curtain, you will see the AA puppet master is laughing as he controls this whole thing. Dallas politics never changes!

 

[scarlet]

How long will they last running a loss everyday?

49.00 fares to SFO/LAX/ORD//MDW/DCA/New York? From AA, United, SWA, Spirit?

Where is Legend?

 

[scoreboardII]

Anyone catch Sir Richards commercial where he calls VA "HIS" airline. Anyone see any problem with that? Hint hint.....

 

[Tomct]

Actually Scarlet, those prices are just the beginning! First Class is selling out like hotcakes (at high ticket prices) and the prices will be healthy for both airlines. Of course, SWA won't be able to compete with our level of service, but its all good.

Competition is good for all, right?

 

[Flyer1015]

How long will they last running a loss everyday?

49.00 fares to SFO/LAX/ORD//MDW/DCA/New York? From AA, United, SWA, Spirit?

Where is Legend?

You just went on the Virgin website and saw the $49 fare on the front page and assumed it was for DAL? No, that was a special fare for LAX-LAS. The cheapest DAL started at was $79 and those sold out. Try searching the prices now for Oct-Dec out of DAL.

 

[Flyer1015]

And why is American involved at all again?

Something doesn't sound right.

Because AA has long-term leases on those two gates from the city of Dallas, and the DOJ says that to meet the terms of divesture, AA can sublease the two gates out to VX. Contractually speaking, there isn't much the city of Dallas can do to stop a sublease because that's already a contractual provision they signed with AA's lease agreement. The initial denial was because AA tried to just transfer the lease agreement in its entirety. But now that the DOJ has stated AA can sublease to VX and still be in compliance with the DOJ divesture requirements, the city doesn't really have much legal grounds to deny it.

 

[redflyer65]

And that's not a true divesture is it?

AA picking who they sub-lease to? Give me a break. AA should be completely gone at Love, but in one last 'stick it to SW', they get together with a former AA executive to help each other out. See the idiocy?

I'm not worried about VA at Love because in the end, I don't think they will do very well. SW will undercut their price on every departure to every city, every day. One thing is for sure, it will be interesting to watch.

 

[Flyer1015]

And that's not a true divesture is it?

AA picking who they sub-lease to? Give me a break. AA should be completely gone at Love, but in one last 'stick it to SW', they get together with a former AA executive to help each other out. See the idiocy?

I'm not worried about VA at Love because in the end, I don't think they will do very well. SW will undercut their price on every departure to every city, every day. One thing is for sure, it will be interesting to watch.

The sublease to VX for the two gate is through 2028. According to the DOJ this sublease satisfies their goals of divestures and opening competition to the LCCs. Sorry, but SWA is not a LCC anymore.

 

[BuckMurdock1]

And that's not a true divesture is it?

AA picking who they sub-lease to? Give me a break. AA should be completely gone at Love, but in one last 'stick it to SW', they get together with a former AA executive to help each other out. See the idiocy?

I'm not worried about VA at Love because in the end, I don't think they will do very well. SW will undercut their price on every departure to every city, every day. One thing is for sure, it will be interesting to watch.

Will be a bit of a shock to your financial system, considering SWA's average fares out of DAL have risen 37% in the last 6 yrs.

 

[scoreboardII]

Actually Scarlet, those prices are just the beginning! First Class is selling out like hotcakes (at high ticket prices) and the prices will be healthy for both airlines. Of course, SWA won't be able to compete with our level of service, but its all good.

Competition is good for all, right?

Yes, competition is good. So when will your airline turn a profit without the need for cash inflows from brother Richard?

 

[redflyer65]

Like I said, it won't be a big deal for SW.

Buck,

You might want to do a little more homework. SW is already lower than VA prices out of DFW. For SW to lower it even more will create an even more stark contrast. Throw in some extra FF miles on those legs and you get the picture.

Up 37% in 6 years? You mean like the price of oil?

 

[Flyer1015]

Like I said, it won't be a big deal for SW.

Buck,

You might want to do a little more homework. SW is already lower than VA prices out of DFW. For SW to lower it even more will create an even more stark contrast. Throw in some extra FF miles on those legs and you get the picture.

Up 37% in 6 years? You mean like the price of oil?

That's when you throw in the two checked bags and the change ticket fee? Pretty unfair comparison. Just because those things are free at SWA doesn't mean everyone checks in two bags and changes their tickets every time.


Why doesn't SWA have any schedules published for Love Field to DCA/LGA? It would be nice to see exactly what they are proposing. In fact SWA doesn't even have their flight schedules available for booking beyond Oct 31st. Is this common? Most airlines can go out 10-11 months in advance.