Virgin America eyes NY, SF.....?

[a320drivr]

May 24, 2004--The new US airline that Richard Branson is planning must meet US regulations on foreign ownership for it to get off the ground.

According to a Reuters report, if Branson is the source of the capital used to establish the new airline, ownership requirements may not be met.

"Since we require US citizenship to own the majority interest in a US airline, if Mr. Branson were to use his capital to establish a Virgin Express in the United States... the test he's going to have to be able to meet is, is it a US citizen that controls the airline," said Norm Mineta, United States Transportation Secretary.

Branson has already recruited former Delta executive Fred Reid in to run the company. He is also in talks with Airbus to acquire new aircraft. (see “Delta president to run Virgin USA,” FLTops TODAY archives, March 12, 2004).

 

[General Lee]

Those $8 sandwiches are probably a lot better than those blue potato chips! And, we make money off of ours. But hey Dizel, try not to get too testy here---I was just throwing out a question about what might happen to Jetblue if Virgin st up a base at JFK also. There is a possibility that Jetblue might have some real competition---and not just to FLA and LAS from Song. That could be serious for you guys---and we can't over look that.....We have stiff competition from a lot of LCCs----and we just need to come up with a good plan now--which is being hammered out. I am sure Reid learned a lot from Song---and he knows also that it is doing better after the first year of service. Even you guys had a lean couple of years at first.....

And, I think Reid will get new airplanes with incentives (just like you guys)---and then they may have lower costs than you! Wouldn't that be a twist? But hey--they may choose SFO...

Bye Bye--General Lee

 

[G4G5]

What you need to keep in mind is that Branson is looking to connect his passengers beyond the confines of his current gate ways.

IMHO he is looking at his current situtation and asking the question, "How can I do better"? If he fill's X number of 744's with people who are just flying LHR-JFK. How many A380's seats (with 550-600 folks) could he sell if he offered connecting service beyond JFK?

He in turn is providing his own feed. If he can fill an A380 from LHR, Gatwick and Manchester. That all arrive at the same time into JFK. You are looking at 1500-1800 folks in just one wave. Hypotheticly 50% are O&D, the other 750-900 would be looking to connect onto one of his A320's. At approx 160 seats per A320, you are looking at filling 5 A320's. Now consider that he has to feed into those A380's to send them back over the pond. Then sell a few local tickets and it's easy to see where the 25 aircraft order comes from.

He can support his own Virgin USA, with his Virgin Atlantic. This is a tremendous advantage. Branson is for real.

 

[B6Busdriver]

There is a possibility that Jetblue might have some real competition---and not just to FLA and LAS from Song. That could be serious for you guys---and we can't over look that.....We have stiff competition from a lot of LCCs----and we just need to come up with a good plan now--which is being hammered out.

Bye Bye--General Lee

So Song isn't real competition then huh? Sorry, cheap shot but I couldn't help myself. The sooner we all learn we are along for the ride the easier life is (at least for me).
Who knows what might happen. Maybe Branson coming to JFK is the reason we keep hearing JetBlue is getting A330's. Personally, I think getting A330's would be a mistake...for now. Maybe JetBlue's hand will be forced to keep competitive then again maybe monkeys will fly out of my butt. All speculative crew room fodder for now but in the mean time I am enjoying the ride.... Woohooo....

 

[General Lee]

B6busdriver,

I think you know what I mean, but hey--it was a good shot. I meant competition from a lot of cities from JFK---Song only competes with you on 7 or 8 cities total......(Very well, I might add too...)(ask lowercur--he just flew Song and actually liked it)

You are right, we are along for the ride---but it is fun to look outside and watch....Take care.

Bye Bye--General Lee

 

[IB6 UB9]

Dear General;

I wish I had a dollar for every time I get on this board and read your junior highschool girlish posts, the ones where you try in vain to hide your obvious hopes for the demise of the LCC's, mainly ours. You have no facts, just an erect shun in your Delta pajamas as you conjure up more garbage. I am beginning to think you are a fanatic, and all that roams around in your head is a combination of headlines that you have read until you sort them the way you want so that they lead to our downfall. God help you.

 

[Dizel8]

No General, jetblue did not have a couple of lean years, as a matter of fact, we came out doing very well after less than a year and persist in posting amongst the best profit margins.

While my good friend in Florida gets along well with you, it appears that your skin is pretty thin and your glee in hoping that jetblue will suffer is beginning to shine through in a major fashion.

That "LCC" of yours has been giving away tickets to gain marketshare and yet, the LF at jetblue should tell you, that we are holding our own very well. Song is a trite copy of jetblue, heck, you couldn't even offer more TV channels. Minimun effort required seems to be the Song game plan and zero innovation.

We give the passengers nice service, at a great price in all markets, not just where we face competetion. Interesting how you can pay way more on DAL mainline, but get less than on Song. That must sit well with your customers, giving greater service to people paying way less on Song.

Sure Song is profitable, Selvaggio says so, yet for reasons unknown, DAL will not post the numbers and most analyst believe it to be smoke and mirrors. Of course the question is, what is Song "charged" for: The airplanes, the crews, the fuel, the insurance, the lease payments or maybe nothing at all?
Selvaggio is not about to say, Grinchstein is reevaluating everything, so who knows what will become of Song.

Sushi and sandwiches just won't cut it in the long run, heck, with all the new restaurants in terminal 6, with street pricing, means you get a nice freshly mixed salad with a soft drink for less than $8 or you could go get freshly made sushi.

Soon we will be coming to LGA offering NYC another choice to destinations they want to go to. Wonder if that will take away some passengers from Song?

But hey, take a look in your own backyard. Airtran has a load of 73's coming, with range that will allow them to further cut into the route structure of DAL. Airtran seem to be taking on DAL in a major fashion and growing increasingly strong with every day passing.

Sure, you got the international routes, but soon, at least one LCC will be going there, if not more than one, perhaps further cutting into DAL.

So you go on, with your hope that jetblue will face hard times, just remember, things in this business have a nasty tendency to go full circle.

 

[skykid]

I wish I had a dollar for every time I get on this board and read your junior highschool girlish posts...

Then quit reading them. The General's making more money than Forest Gump. We ought to be figuring out a way to all get back up there rather than ankle biting each other.

 

[General Lee]

IB6 UB9,

HAHAHAHAHHAAAA. You're funny. I guess I hit a nerve.....Talk about a girl. You probably love that movie---Mean Girls. I bet you have seen it "a bunch." Have fun with Virgin USA at your base. Enjoy!

Bye Bye--General Lee

 

[Dizel8]

Have fun with Airtran 737s at your Hub. Enjoy!