Branson Eyes U-s Airways......

[JFK777]

Wherever "Virgin America" does about its basing, LGA, DCA & BOS is something I don't see because they would be limiting themselves to the east coast. No LGA - California service. I see Virgin America doing longer flying. Virgin could fly DCA & LGA to Florida but that's saturated with JB and Song.

USAIR and PHL is another enigma, US has to fly where SW doesn't. They has to turn PHL into more of an international hub. US needs to fly to unique destinations SW would never go, Sao Paulo, Tokyo, Buenos Aires, Tel Aviv, and any city in Europe with more then one million people they don't fly to. Why US never flew from PHL to Tokyo has always bothered me. US has to offer something SW doesn't because they are not going to compete on price. US also to to protect its longer haul routes to the west from PHL & its traffic to LGA, DCA and BOS.

SW is going strong to Providence, but traffic going to Boston via PRO is price sensitive, traffic via BOS will pay more for the convenience, will the price have a large enough premuim? I don't know US needs more A330 or A340 adn find soen new parts of the world, Tokyo here we come.

 

[mweiss]

Serving those airports doesn't preclude serving the west coast. You're thinking like a hubbed airline. With point-to-point, they can fly to the west coast from BOS and (perhaps) PIT. WN doesn't have much trouble being "based" in DAL despite the Wright Amendment...

 

[aerosmith]

The Virgin Group will invest between $50 million and $250 million in the carrier and will own 49 percent.

As a forigner he's not allowed by law to own more than 25%. Your "source" seems to be a little optimistic with this one.

Didn't British own 49% w/ a smaller controlling interest of U afew years ago?

 

[CLT-Douglas]

It will be interesting to see the outcome of the CLT hub. It all depends if the city remains virtually untouched by LCC at the time another legacy carrier might be interested in the hub. If that's the case, then there is a good chance Continental, Northwest, or United will try and jump at it.

1. Continental- It's congested and delay prone EWR could be reconfigured to be a more of a point to point hub and an international gateway. Unlike EWR, the CLT hub leaves an enormous amount of room for expansion in the future, and is able to handle large banks of flights with little delays and low airport costs.

2. Northwest- Move it's MEM hub to CLT. MEM is a dump compared to CLT. Instead of being near the east coast, it puts them on the east coast to be more competitive.

3. United- See Continental above and replace EWR with IAD. Take advantage of the higher O & D stats by flying more point to point from IAD and use CLT as an alternative to Delta in ATL.

Now if the LCC invade CLT before a legacy carrier can do anything with it, then I can see CLT being a focus city for an express carrier much the way American Eagle is doing in RDU.

4? What about Virgin USA if they can strike a good deal with CLT? Have a flight from London to CLT on Virgin Atlantic, plus start a web of flights with DCA, BOS, LGA, PHL, in the north, and FLL or MIA, ATL, MCO in the south, and begin moving west?

 

[deltawatch]

Branson continued: "For the past year, Branson has been quietly talking to American venture capital providers who will provide the other 51% of the investment. The launch budget is pencilled in at $200m."

"Branson's theory is that the US administration is finally ready to let one or more members of the established but creaking American airline industry - American, United, Delta and USAirways - go bust."

http://www.guardian.co.uk/mobile/article/0...1135059,00.html

 

[USA320Pilot]

Dear Fellow Employee:

"Branson's theory is that the US administration is finally ready to let one or more members of the established but creaking American airline industry - American, United, Delta and USAirways - go bust."

USA320Pilot comments: Let it be American, United, or Delta that "go bust", not US Airways.

Regards,

USA320Pilot

 

[deltawatch]

MORE: U.S. Plans, ``We shouldn't have any problems in now getting the airline launched,'' Branson said. The Virgin Group will own 49 percent of the carrier will invest at least $50 million. This would rise to about $250 million under a plan to take over about a third of US Airways slots, Branson said.

US Airways has ``an obligation to pursue strategic discussions which might benefit the company and its shareholders,'' US Airways spokesman David Castelveter said in a statement. ``We are not in any discussions with Virgin USA or any other Virgin representatives.''


http://quote.bloomberg.com/apps/news?pid=1...hGwzSU&refer=uk

 

[tadjr]

This would rise to about $250 million under a plan to take over about a third of US Airways slots, Branson said.

Wondering if anyone else was thinking this is how it might work out. Since the E70 is able to use commuter slots (DCA, is LGA the same?) and the Shuttle hasnt been performing as it has in the past, what about selling the "Shuttle" slots currently being used to Virgin then replacing the "Shuttle" with the E70s. We wouldnt lose the Shuttle, the big jets on the Shuttle could be sent out of the NE to new places and we get the money for the slots, keep the Shuttle product and Virgin gets their slots to offer service wherever they want to go. Add in a code share arrangement with them out of LGA/DCA/BOS where we dont go and its a win for all right?
I wonder if the Virgin product would be used to high business markets like DCA/LGA/BOS- ATL/DFW/ORD/IAH, etc where US doesnt have any nonstops from these cities? This would actually put a hurting on the competition as well since it would syphon off (possibly) some of their nonstop traffic on Virgin while mitigating the loss of traffic on US as long as they dont start service to PIT/CLT/Florida.
Thoughts?

 

[18yrsandstillonnights]

There was an article a couple days ago that Virgin plans to hire 1,400 people in the near future.