I'm out of my league on the specifics of this Virgin LCC discussion, but I will say this: never underestimate your competition. I to doubt that Virgin will be able to just come in and blow away the existing carriers, but I'm certainly not yet willing to count Virgin out.
The original post mentioned that Virgin likes three year employement contracts, and adds that that would keep ALPA away. Not to be argumentative with tictak, but ALPA is not on property at any of the big LCCs either. SWA and Airtran pilots have their own union, and JetBlue is non-union. If Branson is thinking that he will be able to get cheap pilots, he would be correct, until the next upswing. He would need to time every expansion/contraction cycle perfectly in order to hire in a employers market and have their contract keep the pilots employed in a pilots market. If he is indeed that astute, he will succeed. However, I believe that the overall environment is way too volatile to allow such a contractual employement system to succeed in the long term. Timing the business cycle may be doable, but how can one predict such things as September 11, 2001?
regards,
enigma