The launch of Virgin America -- until yesterday known as Virgin USA -- has slipped well into next year as the carrier works to raise capital and has not yet filed for certification with the U.S. Dept. of Transportation (DOT), but the airline got a little boost yesterday when it officially branded itself and ordered more than 100 new Airbus narrowbodies.

The order was expected for more than a month (DAILY, May 3), but the head of the startup airline, Fred Reid, yesterday provided details on the order in a speech to the International Aviation Club of Washington. The carrier placed a firm order for 18 Airbus aircraft, including 11 A319s and seven A320s. In addition, the airline will lease 15 new A320 family planes from GE Capital Aviation Services, with first deliveries planed for early 2005.

Virgin America also signed a deal for options on 72 more planes, a sign that it has aggressive growth plans in the works after its launch. Reid said yesterday that the airline did get a bid from Boeing and that both manufacturers offered "attractive terms." However, he called the A320 family the "most technologically advanced narrowbody aircraft available" and citied the plane's "wider bodies" and "modern design" as reasons for going with Airbus.

Reid said the airline now aims to start "somewhere around the middle of 2005," much later than Virgin Chairman Richard Branson envisioned a year ago. Reid told the audience he has not yet set a timeline to file with DOT and said only that Virgin America will "file as soon as we're ready." He is making frequent trips to Washington, however, and met with authorities after his lunch speech yesterday.

Last July, Branson said he hoped to have Virgin America off the ground by this summer (DAILY, July 17), but the startup has slipped significantly as the launch plan changed over the past year. He said in January it would start in September; in March, the company said it wouldn't start until early 2005, and yesterday Reid said it would be next summer before Virgin America takes to the skies.

The airline last week said its corporate headquarters would be in New York City and operational headquarters in San Francisco. Reid yesterday made clear that SFO would not be a hub for the airline, and the decision "sheds no light" on the planned route structure. He added that the airline might not even have a traditional hub.

While Reid did not provide much detail on how he will differentiate Virgin America from other domestic, low-fare carriers because they are still formulating their plans, he said he will take full advantage of the Virgin brand name and focus on customer service. "Customer service should not be an afterthought or reaction to government pressure," he said. "It is the core of an airline and the core of the venture we plan to create."

He said every company has a personality, and he described Virgin America's as "honest, open, utterly professional, flexible, compassionate, tolerant and maybe a tad irreverent and self-deprecating every now and then." Reid added that the airline will be consumer-driven and market-responsive. The most unique attribute for the airline will be "brand value," noting that Virgin is recognized across many industries throughout the world.

Even though it carries the Virgin brand, the company will be U.S.-owned and -run, Reid said. "It all conforms quite smartly with the core philosophy of U.S. aviation policy, not to mention the letter of the law." Reid said Branson gives all of the companies with the Virgin name "extraordinary autonomy," which will let Virgin America be an "independent and fully compliant U.S. domestic carrier."

Virgin America also unveiled its leadership team, which includes many industry veterans. The airline chief information officer is Don Applegarth, who was a VP at Navitaire and VP and CIO at Western Pacific Airlines. Bob Dana is the new CFO and joins the carrier after serving as an investment banker with U.S. Bancorp Piper Jaffray and Credit Suisse First Boston.

Joe Houghton is the chief pilot and joins Virgin America from US Airways, where he was the assistant chief pilot. Terry Rendleman, senior VP-technical operations, held a similar position at United and Northwest. Bob Weatherly, senior VP-flight operations, previously worked at Atlas and Canadian Airlines.