Virgin Pays 9 million to AA for Love

[bri5150]

Pilots on fi.com know a lot more than the guy that got Alaska back on it's feet and made Westjet the Southwest of Canada I guess.

 

[HRDiva]

Again, slowly...

If all they had to do was put up a Letter of Credit for $4MM, then they just had to pay a fee to the bank issuing the LC.

 

[BuckMurdock1]

I would not want to be the VX employee having to park my car with a big red Virgin bumper sticker in that lot, just saying.

Somehow I don't think many of us have those on our cars (pilots, at least).

 

[begsby]

That is good news for the industry. VA has a better product than SW and they will compete nicely.

 

[scoreboardII]

Better product, judged by whom? The folks are proving they flock to Spirit and Allegiant, both rake in the cash, VX not so much. They love cattle car calls or they wouldn't put up with them at SWA. I think the VX product is fine, but better? That's like saying a BMW is better than a mustang. Yet, the Mustang can kick it's tail all around Laguna Seca.

 

[redflyer65]

That is good news for the industry. VA has a better product than SW and they will compete nicely.

I'd say it depends solely on how Southwest handles the competition. Lower fares with free FF points could make it less than 'nicely'. Matched fares would probably keep both airlines full regardless.

 

[SpauldingSmails]

That is good news for the industry. VA has a better product than SW and they will compete nicely.

Beta was superior to VHS as well - look what happened.

Now we don't use either.

 

[Tomct]

VX is going to be just fine flying out of LUV. Case in point, look at what United tried to do to us in EWR with their 17 flts a day, double points and low ticket prices.....UAL lost their Ass and VX has one of its best cities it has ever opened. Tickets are high priced and all is good.

Does this mean all SWA flyers will come to VX....NO! Will we take some of their business travelers...YES! Our product is far superior to ANY airline in the US and we will cut out our niche just like we have done in JFK, SFO, LAX, EWR, FLL, ORD, SEA and on and on and on.

 

[HowardBorden]

Our product is far superior to ANY airline in the US and we will cut out our niche just like we have done in JFK, SFO, LAX, EWR, FLL, ORD, SEA and on and on and on.

I can fully agree you have a good product, I have flown on your airline and have been impressed.

The statement you have made is simply incorrect however. Until the flying public starts choosing your product for a period of time that allows for consistent periods of profitability, they are spending their dollars elsewhere, nullifying your argument. The far superior product is the one that is consistently chosen by the consumer. Awards go a long way but if they aren't backed up with customers spending their hard earned dollars, they are worthless.

 

[jonjuan]

I can fully agree you have a good product, I have flown on your airline and have been impressed.

The statement you have made is simply incorrect however. Until the flying public starts choosing your product for a period of time that allows for consistent periods of profitability, they are spending their dollars elsewhere, nullifying your argument. The far superior product is the one that is consistently chosen by the consumer. Awards go a long way but if they aren't backed up with customers spending their hard earned dollars, they are worthless.

The first intelligent thing you have said in a while, Howard. VX is a niche product and will be under pressure for a long time. JetBlue redo, they ain't.