Virgin America

[wood pecker]

Does this mean we will lose our future $20 million dollar new concourse at C complete with talking trash cans? I still get giddy about our new soap dispensers in the bathrooms with the foaming suds. To bad we had to freeze our pay for 10 years in order to get them.

 

[Weasil]

Branson started Virgin Blue in Australia 3 years ago and it was a huge success. I imagine if this goes ahead he has a very good business plan in mind. Perhaps he is just looking to purchase an operating certificate, instead of starting from scratch which takes years these days.

 

[Dave Benjamin]

Branson can only have a limited financial role due to US airline ownership restrictions. Given the spate of recent press releases on the subject it's apparent that rounding up financing is slowing things down for the new airline. There are plenty of airlines willing to bid on feed when the time comes. Absolutely no reason for Virgin to buy a regional, especially one that is a viable operating entity. It would be much cheaper to buy a failed or failing carrier if all he wanted was a 121 cert. No I think this is yet another rumor invented for the sole purpose of entertainment.

And in that respect it is succeeding.

 

[~~~^~~~]

IF VA did buy ASA who is going to get Delta's work.

Probably a "Portfolio of Carriers" not too different than what exists now.

Branson hated the American Airways / British Airways partnership. I could see a Delta / Virgin partnership to explore route synergies. Not that these things ever do generate the cash management promises, but since the DOJ always looks the other way when airlines engage in anti-competitive activity, I am sure Delta and Branson could share resources without stepping on eachother's toes.

Consider that American Eagle feeds Delta in LA and Delta, Northwest and Continental all share code.

 

[Weasil]

We were told by our management at PSA that Virgin had made an offer to buy us several months back. So if that is true then Branson has tried to purchase at least one regional. And as you say, if this is all smoke, then at least it is entertaining.

 

[General Lee]

Branson started Virgin Blue in Australia 3 years ago and it was a huge success. I imagine if this goes ahead he has a very good business plan in mind. Perhaps he is just looking to purchase an operating certificate, instead of starting from scratch which takes years these days.

Weasil,

Did you know that Virgin Blue was created after the #2 airline Ansett, fell apart? There was only one Major airline left, Qantas, and Virgin Blue just exploded with growth, being the only LCC in Australia at the time. That same picture is not the same here in the States, with multiple LCCs and many Majors. Virgin Express, Branson's LCC in Europe, is NOT doing well, since there is so much competition. Expect the same type of competition from everyone here.

Bye Bye--General Lee

 

[777_Jackpot]

I don't know much about the whole Virgin America thing and I can't find anything on the website about how Branson would get around the whole cabotage thing. Anybody care to explain or direct me to a website. Appreciate it.

 

[Draginass]

A "Virgin America" airline would have to be majority American owned. Even if Branson owned 49% of the airline, the law limits him to 25% of voting shares (control). There wouldn't be a cabotage issue since it would be a U.S. owned and controlled airline.

 

[777_Jackpot]

Never mind....found it

 

[777_Jackpot]

Yeah, I just ran onto that exact answer on another thread. Appreciate it though.