Welcome to Flightinfo.com

  • Register now and join the discussion
  • Friendliest aviation Ccmmunity on the web
  • Modern site for PC's, Phones, Tablets - no 3rd party apps required
  • Ask questions, help others, promote aviation
  • Share the passion for aviation
  • Invite everyone to Flightinfo.com and let's have fun

Virgin USA - New York and SFO

Welcome to Flightinfo.com

  • Register now and join the discussion
  • Modern secure site, no 3rd party apps required
  • Invite your friends
  • Share the passion of aviation
  • Friendliest aviation community on the web

storminpilot

Well-known member
Joined
Jul 6, 2003
Posts
282
http://biz.yahoo.com/prnews/040605/nysa020_1.html

Press ReleaseSource: Virgin-Branded U.S. Airline


New Virgin-Branded U.S. Airline Announces New York as Corporate Headquarters and San Francisco as Principle Base of Operations

Saturday June 5, 6:00 am ET New Airline Will Create up to 3,000 Jobs Over Five Years

NEW YORK, June 5 /PRNewswire/ -- Fred Reid, head of the new Virgin-branded U.S. airline start up, today officially announced New York as its corporate headquarters and San Francisco as its principle base of operations. As two of the country's largest travel markets, both cities and states offered remarkable incentives that will help the airline to design a new low-cost operation that will create as many as 3,000 new jobs over the next five years.

"We received a heart-warming welcome in both cities. After careful deliberation, we felt that pairing New York and San Francisco would provide the best foundation for a business model that allows us to deliver a better experience and better value for air travelers," said Reid. "Culturally, New York and San Francisco reflect the Virgin brand's fun, dynamic style, making them both ideal places for us to recruit creative, skilled employees who can deliver on our vision of outstanding customer service."

This dual approach is one way the company is already challenging industry norms. A significant presence on each coast will enable the airline to create operational efficiencies - the first of many innovative moves planned - to design a modern, efficient business structure that will help the airline deliver real value to air travelers. Initially, the New York headquarters is expected to employ more than 300 people. Also within the first two years of operation, the new company plans to hire more than 1,500 flight attendants, pilots, flight attendants, maintenance technicians, engineers, dispatching and other work functions in San Francisco. The overall number of employees, in both locations, is anticipated to grow to more than 3,000 over the next five years.

New York City, NY

This will be the only airline to call Manhattan home. It will centralize corporate functions for the company in New York, the country's largest travel market, at what it calls "Airline HQ," including marketing, human resources, and finance responsibilities. The airline anticipates more than 300 employees working at this facility initially.

"I would like to commend the airline on its decision to place their corporate headquarters in New York City," said New York Governor George E. Pataki. "They chose New York over several other major US cities, proving once again that we are the business capital of the world. It is through aggressive, pro-business policies that this State continues to win projects and jobs for the people of New York. Important investments such as this bring New York State closer to our goal of creating one million new jobs by the end of the decade."

The state and city offered the airline more than $11 million in hard and soft state and local grants and incentives, including tax and energy incentives plus funds for job training assistance, co-operative marketing and community development.

San Francisco, CA

This also will be the first and only airline with its principle operations based in California. In San Francisco, the country's third largest travel market, the airline will centralize all operations responsibilities, including flight attendants, pilots, flight attendants, maintenance technicians, engineers, dispatching and other work functions, at what it calls "Ops HQ." The airline anticipates more than 1,500 employees working at this facility.

"Today's announcement that the new Virgin-branded U.S. airline will base its operations center in the San Francisco Bay Area and bring more than 1500 new jobs to the state is fantastic news for California," said California Governor Arnold Schwarzenegger. "I'm thrilled the airline has decided to take advantage of California's many advantages - a vast market, qualified workforce, wonderful lifestyle, excellent operating climate and a government committed to making it easier for businesses to succeed. The new airline's decision to base its operations in our great state is yet another example that California is open for business."

The state and city offered the airline more than $15 million in hard and soft state and local grants and incentives, including employment training grants and co-operative marketing.

About the Virgin-Branded U.S. Airline

The new Virgin-branded U.S. airline will be the 21st century alternative, an innovator that challenges industry norms to deliver a better experience for domestic air travelers. The company will unite Virgin's world-renowned customer-focus, and distinctive style to create a low-fare airline that offers more - more options, more comfort, more entertainment, more value. The U.S. airline will be American-owned and operated - with a majority of American investors. Contacts: Stacy Geagan, Virgin-Branded U.S. Airline Spokesperson Office: 212-994-3076 Cell: 917-334-0425 [email protected] Xenophon Strategies [email protected]
 
Last edited:
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2004/06/05/MNG1K71GGL1.DTL

SFO lands new carrier Virgin USA -- 1,500 jobs
Airline sets sights on low-fare market; corporate center to be based in N.Y.

[font=geneva,arial]- Harriet Chiang and David Armstrong, Chronicle Staff Writers
[/font][font=geneva,arial][size=-2]Saturday, June 5, 2004
[/size][/font]

Virgin USA, the fledgling discount airline backed by British entrepreneur Richard Branson, will make San Francisco its home base of operations, creating as many as 1,500 jobs in the Bay Area, the carrier confirmed Friday.

Virgin will base its operational headquarters in San Francisco and its corporate headquarters in New York, taking advantage of two of the country's largest travel markets.

The two cities were finalists in Virgin's process of deciding where to establish the home base for its U.S. airline, which is intended to compete with such low-fare carriers as Southwest and JetBlue. Virgin USA is scheduled to be up and running by next year.

"After careful deliberation, we felt that pairing New York and San Francisco would provide the best foundation for a business model that allows us to deliver a better experience and better value for air travelers,'' Fred Reid, head of Virgin USA, said in a statement scheduled to be released Monday.

In its first two years of operations, the company plans to hire more than 1,500 flight attendants, pilots, maintenance technicians and other employees to work in San Francisco.

Virgin said it will be the only airline with its principal operations based in California.

San Francisco Mayor Gavin Newsom said Virgin's decision is great news for the Bay Area.

"This is a tremendous deal for the city of San Francisco and the entire Bay Area,'' Newsom said. "The new Virgin-branded airline startup is a perfect match with San Francisco in so many ways. The Virgin brand is unique, and San Francisco is the world's most unique city.''

Gov. Arnold Schwarzenegger called the announcement "fantastic news.''

"I'm thrilled the airline has decided to take advantage of California's many advantages -- a vast market, qualified workforce, wonderful lifestyle, excellent operating climate and a government committed to making it easier for businesses to succeed,'' he said.

California and San Francisco offered Virgin more than $15 million in state and local employment training grants, cooperative marketing and other incentives.

The timing is good for the Bay Area, where the travel business is picking up at airports in San Francisco, Oakland and San Jose.

The Bay Area may have gotten an unexpected boost in April when Branson named Reid, a former Delta Airlines president, as chief executive of Virgin USA. Reid is a graduate of UC Berkeley with strong ties to the Bay Area.

In his statement, Reid said San Francisco and New York match up well with the airline and its founder, Branson, a maverick whose corporate empire includes record and entertainment operations and mobile phones and who has positioned his international carrier, Virgin Atlantic Airways, as a cheeky outsider.

Culturally, Reid said, "New York and San Francisco reflect the Virgin brand's fun, dynamic style, making them both ideal places for us to recruit creative, skilled employees who can deliver on our vision of outstanding customer service.''

Reid said the airline plans to hire more than 300 for its New York corporate headquarters.

The airline said it expects to hire more than 3,000 employees in both cities over the next five years.

New York Gov. George Pataki said Virgin's decision to base its corporate operations in his state shows that "we are the business capital of the world.''

In its courtship of Virgin, San Francisco offered many advantages, including extensive maintenance facilities at San Francisco International Airport and a vast pool of airline employees who have been laid off during the economic downturn that began in 2000.

But New York was seen as having an edge because Virgin Atlantic, which is 51 percent owned by Branson, already has a major presence in New York, which serves as a gateway to the Atlantic and the European market.

If the airline takes off next year as planned, Branson, as a British citizen, cannot own more than 49 percent of the carrier. He has said he envisions Virgin USA as a domestic low-cost carrier, similar to JetBlue and Southwest, flying primarily in the United States.

The Associated Press contributed to this report.E-mail the writers at [email protected] and [email protected].
 
Last edited:
Congratulations on basing the offices and the operations in the 2 most expensive citises in the US.

Won't be a low cost carrier then?

Whatever happened to the old rule about foreigners could not own an airline in the US?
Has Branson hired some puppet in New York to "Own" the ailine for him or has the law changed?

Did a proper market study and business plan indicate that there is indeed room for yet another domestic airline
in this country....? Are more supply than demand going to force ticket prices further down, more cost slashings
and bankruptcies etc.
The survivors will work for free and give tickets away for free, all with a big smile so as to keep market share.
Time to go sailing
 
Special tax breaks?

Well, it doesn't surprise me that Frank Reid makes another bonehead decision - unless something special was negotiated. The highest cost of Virgin America could be its rent and health care costs - both of which are highly avoidable (certain states have more favorable rents and healthcare costs). I am betting that VA got some sort of special tax break from both states to fund this.... Not such great news for pilots who might have to live in the Bay Area - LCC wage in a super-expensive area.... Commuting would probably be necessary unless your spouse makes a lot of dough.

Next thing you know Fred Reid will announce that VA will be ordering 300 CRJs because regional jets are the wave of the future..... Good luck to all involved. I am sure the people at Alaska Airlines aren't too happy about this given that startup out of SFO will create a lot more pressure on margins.
 
Last edited:
Not ENOUGH tax breaks....

Heavy,

Looks like VA was offered $15 million from California. However, I doubt that will be enough given:

1. Super-high California health care costs like you said
2. High rent in both SFO and NYC (why ultra-expensive Manhattan?)

On top of the high up-front costs, VA will need to compete with TED (in desparate fare-cutting mode), SWA and JetBlue on the other side of the Bay, and Alaska. I thought SWA left SFO due to the constant operational problems experienced out of the airport - delays due to fog, etc.

I can't wait to see what their "innovations" will be. Let me guess, "RJ" Reid will likely introduce high-frequency RJ service to Las Vegas and Reno. Meanwhile, any transcon service from the Bay area will be packed by carriers like SWA (to BWI from OAK), Jet Blue, Indy Air to IAD, AirTran to ATL, AWA to JFK from SFO, and all of the legacy carriers discounting like MAD to maintain some dropping market share.

Does anyone know whether Airbus has been "officially" chosen for the fleet or if that is still up in the air (I though Boeing was invited back to bid - not sure)?
 
storminpilot said:
If the airline takes off next year as planned, Branson, as a British citizen, cannot own more than 49 percent of the carrier.

CSY Mon, I think this is what you were looking for...
Andy

P.S. how the heck do you get the "icons" to show up on your post?
 
xanderman said:
CSY Mon, I think this is what you were looking for...
Andy

P.S. how the heck do you get the "icons" to show up on your post?
I believe 49% foreign ownership of voting stock was kicked around at the EU open skies meeting without an agreement, but the current limit is still 25%
 
80drvr said:
I believe 49% foreign ownership of voting stock was kicked around at the EU open skies meeting without an agreement, but the current limit is still 25%
So does that mean he'll own no more than 25%? Wonder if Branson is a control freak or not?
Andy
 
49?

Zanderman,...fellow Twin Otter driver...

As per icons...Not sure, mostly luck, or lack off.

The law says that any airline needs 51% ownership in this country.
Meh thinks.

Branson have been running around the planet starting up flight operations.
Virgin Australia or Virgin Blue or whatever he calls the airline of the day is one of the latest offsprings.
And Virgin this or that.

Wonder what the motivation is?
Grow big and lean and operate on a shoestring?
Or present a quality product for a lesser price..:rolleyes:
Yup, he is kicking some BA ass for sure, pax are mostly happy, but some of the pilots have been bitching about the working and pay conditons from time to time,
On the other hand, we all bitch..Have not met many happy pilots on the average, except perhaps the jetBlue dudes and dudinnes, never heard any complains in that camp..

How can the Branson guy compete against SouthWest...The masters of lean and happy, or JetBlue and/or ValueTran and all them guys that are flying on a pretty lean, but profitable budget?

Lower fares, more cool-aid and more promises of a great future to the employees, except a good retirement plan, a good union contract with good wages and good insurance....?..:cool:

Screw it all...This cowboy have 19 flying jobs on the resume, from C-120s to B-747...Time to go sailing:
Leaving the dock Monday at 10:00 for the Exuma chain in the Bahamas...Boat is full of beer, rum, good food, water and diesel...Let Branson start his low cost ops and let the hungry guys build time..Live and let live...
And let die.

Peoples Express, Midway, Tower Air and many more...

Going sailing.
 
The highest cost of Virgin America could be its rent and health care costs - both of which are highly avoidable (certain states have more favorable rents and healthcare costs).
Guess that depends on how much of the healthcare costs you push off on your employees, huh?
 
Welcome to the Bay Area Mr Branson,

Later,

PS: Remember to kick your quarter to OAK, if you drop it in SFO....:D
(It is a joke)....
 
storminpilot said:
This also will be the first and only airline with its principle operations based in California.
Didn't Continental have their principle operations in Los Angeles before Lorenzo took over and moved HQ to Houston?
 
This also will be the first and only airline with its principle operations based in California. In San Francisco, the country's third largest travel market, the airline will centralize all operations responsibilities, including flight attendants, pilots, flight attendants, maintenance technicians, engineers, dispatching and other work functions, at what it calls "Ops HQ." The airline anticipates more than 1,500 employees working at this facility.
What's the difference between the flight attendants that precede the pilots, and the flight attendants that follow? :confused:
 
I wonder if the tax incentives and financial grants include about $200,000 for each employee so they can afford a down payment on a two bedroom apartment in their city of employment.

The guys and gals at VB in Oz work pretty hard for relatively low pay but Branson did buy them an island to party on. I wonder if Alcatraz is available.

TP
 
CSY Mon said:
Time to go sailing:
Leaving the dock Monday at 10:00 for the Exuma chain in the Bahamas...Boat is full of beer, rum, good food, water and diesel...Let Branson start his low cost ops and let the hungry guys build time..Live and let live...
And let die.

Going sailing.
Well, with your "Live and Let Die" quote and your itinerary through the Exumas, make sure to stop off in Staniel Cay for a few days . . . part of "Thunderball" was filmed there. Make sure to snorkel through Thunderball Grotto. What a great place.

Have a blast. If you make it down to Peace and Plenty in Georgetown, tell 'em I said "Hi".
 

Latest resources

Back
Top