Virgin Usa Doings

BoeingBoy

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Nov 9, 2003
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Aviation Daily

Virgin USA To Order Aircraft, Name Base, But Launch Slips
By Steve Lott
05/03/2004 10:33:39 AM

Virgin USA plans to unveil an order this week for roughly 30 new aircraft and reveal the base of operations for the low-fare carrier, but the launch date continues to slip from the timeline executives have previously discussed.

A Virgin USA executive told The DAILY Friday that the airline planned an announcement "very early next week" but couldn't discuss details. Several sources, however, confirmed that Airbus is the frontrunner in the narrowbody campaign. Chairman Richard Branson earlier this year said he wanted to start with 10-15 planes, but sources said management now wants a larger order for growth (DAILY, Jan. 9).

Virgin also is expected to unveil the city where it will base its operations. In January, Branson said the list was narrowed to Boston, San Francisco and Washington. Dulles Airport, however, is now a distant third, largely due to Atlantic Coast's accelerated timeline to launch Independence Air. By August, Independence Air is expected to operate 300 daily flights and will be in a battle with United.

Last July, Branson said he hoped to have Virgin USA off the ground by this summer (DAILY, July 17), but the start-up has slipped significantly. He said in January that it would start in September; in March the company said it won't start until early 2005. It wasn't until March that Branson named former Delta President Fred Reid to "lead the formation" of the carrier (DAILY, March 15). The airline has yet to apply to the U.S. Transportation Dept. for certification.
 
I think that V-USA will get off the ground, but as their start date slips farther into the future, their chances of surviving get smaller. All of the LCC's are adding planes and the Legacy carriers are seeing their LF's improve as well. Since V-USA has even started their application yet, once the hub city is announced, I think you will see an increase in flying by the dominant carrier(s) there. Just my 2 cents.....
 

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