Austin airport among Virgin America options
Austin Business Journal - March 3, 2006
by Jonathan Selden
Austin Business Journal Staff
British billionaire Richard Branson's startup airline
Virgin America Inc. might be coming in for a landing at
Austin-Bergstrom International Airport.
Virgin America's application to provide service in the United States -- filed in December with the U.S. Department of Transportation -- lists ABIA among nearly 40 airports the carrier "would potentially be interested in serving."
Although it's far from certain that Virgin America planes will touch down in Austin, being listed on the application might foreshadow a major development.
"I don't think they'd name a market they don't intend to serve," says David Beckerman, an airline analyst at Back Aviation Solutions in Atlanta.
Virgin America, which has been in the works for more than two years, announced in January that it would put its corporate headquarters in suburban San Francisco. The carrier wants to begin flying its Airbus aircraft domestically this year, but first must get approval from the U.S. government.
The approval process, which takes about 18 months, includes a financial analysis from the DOT and a look at the carrier's operational plan by the Federal Aviation Administration.
DOT spokesman Bill Mosley says he doesn't know how long it will take to decide on Virgin America's application, which has faced opposition from U.S.-based carriers such as Houston's Continental Airlines Inc.
Although he's aware of the Virgin application's mention of Austin, Jim Smith, executive director of the Austin Department of Aviation, says he hasn't heard from the airline.
The DOT filing is "just a formality to show that they're trying to go into business," he says. "We have had not contact with them."
But as with low-fare carrier Jet Blue Airways Corp., "we welcome any airline who wants to fly out of here," Smith says.
Jet Blue, which started flying daily nonstops from Austin to New York and Boston in January and might end up competing with Virgin in Austin, won't be concerned until the startup actually takes to the air, says Todd Burke, Jet Blue's vice president of corporate communications.