Virgin America sees potential in mid-continent destinations as well several more transcontinental services under an expansion plan that will rely on greater utilization of the carrier’s current fleet of Airbus narrowbodies.
President and CEO David Cush, speaking to The DAILY after the first test flight of the carrier’s Gogo inflight broadband service (DAILY, Nov. 21), said the company is now employing a fleet plan that retains the current inventory of 28 aircraft for up to two years. This plan defers about four deliveries scheduled during this period.
The San Francisco-based airline has also returned to the investment market to bolster its initial capitalization of $312 million. The airline has now raised more than $400 million, according to Cush.
“Our utilization is about 11.5 hours for each plane, and once things pick up, I expect this to increase by two or more hours,” said the airline’s top executive. “I am happy with the way things are going.”
That increased utilization will be used to add cities, noted Cush. Apart from well-publicized problems obtaining gate access at Chicago O’Hare — something the carrier remains confident will be resolved in the coming weeks — other transcontinental services from both Los Angeles and San Francisco are being considered to Boston and Miami.
“We could also see more from New York [Kennedy] although it is tough without enough slots,” said Cush. One possible addition to Virgin America’s New York scheduled could be a third frequency to Las Vegas, he added.
But transcontinental expansion is only one facet of the airline’s future. “Austin [Texas] is a nice fit for us… and we will eventually be in Atlanta,” said Cush.
Expansion into Atlanta would be initiated from Los Angeles, noted the president and CEO. “We are California’s airline; Los Angeles is as important to us as San Francisco.”
Virgin America currently serves six cities from its home city: Kennedy, Las Vegas, Los Angeles, San Diego, Seattle, and Washington Dulles. Dulles, Kennedy and Seattle are also offered from Los Angeles, while the carrier’s only New York service is its nonstop to Las Vegas.
Photo: Virgin America
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