How does Virgin make a profit on $39 fare???

[Tail Gunner Joe]

Source: http://www.virginamerica.com/va/search.do?method=thisIsHowToFly

San Francisco - Las Vegas$39
San Francisco - Los Angeles$39
San Francisco - Orange County$39
San Francisco - San Diego$39
San Francisco - Seattle$49
Los Angeles - Seattle$59
Los Angeles - Boston$99
San Francisco - Boston$99
San Francisco - Washington, D.C. (Dulles)$99
Los Angeles - Washington, D.C. (Dulles)$99
Los Angeles - Fort Lauderdale$99
San Francisco - Fort Lauderdale$99
San Francisco - New York (JFK)$99
Los Angeles - New York (JFK)$99

 

[GuppyWN]

They make up for it in VOLUME, baby!

Gup

 

[labbats]

If the FAA and congress really did want to fix this industry they would outlaw pricing below cost (including industry average pay for all work groups).

 

[My name is EARL]

They just have Branson give them more cash. Its that easy.

 

[BoilerUP]

http://en.wikipedia.org/wiki/Loss_leader

 

[ACL65PILOT]

He can buy all of the seats and just not fill em. There is no low that states he cannot do that

 

[Ben Franklin]

RASM - CASM = PROFIT or (LOSS)?

It's not rocket surgery, folks.

Sincerely,

B. Franklin

 

[samballs]

8 of us went from cle to las last year for 78.00 each way

 

[pilotyip]

Watch out for unintented consequences

If the FAA and congress really did want to fix this industry they would outlaw pricing below cost (including industry average pay for all work groups).

Unintented consequences, the industry would shrink without the cheap seats, There are people who only buy cheap seats. Fewer seat, fewer flts, fewer pilots.

 

[EMBpilot]

Free airplanes for 5 years.
Free maintenance on free airplanes for 3 years.
Young employees who work for early on the scale and substandard pay.

David Neeleman said "running the airline where you have to pay for leases can really break you".

LCC is really a temporary thing - sooner or later the costs climb high enough and it is time to sell the business or become one of those blood sucking majors.