Virgin America adds three new routes
By Tim Simmers
San Mateo County Times
Article Created: 05/01/2008 06:36:38 PM PDT
By Tim Simmers
BUSINESS WRITER
BURLINGAME "†Discount carrier Virgin America is continuing its aggressive expansion despite industry woes involving soaring fuel prices and airline closures.
The eight-month-old, Burlingame-based airline announced additional flights this week between San Francisco International Airport and New York, Seattle and Washington, D.C.
The airline's investors also will soon inject $100 million of capital into the company despite record-high fuel prices and a slumping economy. The expansion proceeds in the face of airline closures last month by ATA, Aloha, Skybus and Eos airlines.
On the Peninsula, Virgin America's employee base has grown to 1,300. The carrier said it will continue with its original business plan to add 1,000 workers in each of its first three years of operation.
"It's all about timing, and they launched the airline in a cyclical industry downturn," said Gerald Bernstein, principal at Stanford Transportation Group. "As long as they have investors who are confident in them, they can continue with their business plan."
Investors in the airline, which is partly owned by U.K. billionaire Sir Richard Branson, include Branson as well as U.S. investors Cyrus Capital Partners, a New York-based hedge fund, and Black Canyon Air Partners LLC.
Virgin America is one of the best-financed U.S. airlines in history, having raised more than $300 million in addition to the new infusion of cash.
"We're seeing an overwhelming response to our new airline from the traveling public, so we're adding service to meet demand in time for the busy summer travel season," Virgin America President and CEO David Cush said.
The airline is projected to become profitable in 2010, company officials said.
Starting May 18, it will offer a new daily flight from SFO to Washington's Dulles International Airport that departs at 7:45 a.m. and arrives at 3:55 p.m. EST. A new return flight to SFO departs Dulles at 5:15 p.m. and arrives at 7:55 p.m. Pacific time.
On June 10, the airline will add a new flight from SFO to New York's John F. Kennedy Airport, departing SFO at 3:20 p.m. and arriving in New York at 11:55 p.m. Eastern time. The return flight leaves New York at 10:55 a.m. and arrives at SFO at 2:05 p.m. PST.
Starting June 25, additional flights from SFO to Seattle will depart at 6:45 a.m. and 1:35 p.m. and arrive at 8:40 a.m. and 3:30 p.m., respectively. The new Seattle-to-SFO flights will leave at 9:25 a.m. and 4:15 p.m., reaching SFO at 11:30 a.m. and 6:20 p.m., respectively.
From San Francisco, Virgin America also serves Los Angeles, San Diego and Las Vegas.
By Tim Simmers
San Mateo County Times
Article Created: 05/01/2008 06:36:38 PM PDT
By Tim Simmers
BUSINESS WRITER
BURLINGAME "†Discount carrier Virgin America is continuing its aggressive expansion despite industry woes involving soaring fuel prices and airline closures.
The eight-month-old, Burlingame-based airline announced additional flights this week between San Francisco International Airport and New York, Seattle and Washington, D.C.
The airline's investors also will soon inject $100 million of capital into the company despite record-high fuel prices and a slumping economy. The expansion proceeds in the face of airline closures last month by ATA, Aloha, Skybus and Eos airlines.
On the Peninsula, Virgin America's employee base has grown to 1,300. The carrier said it will continue with its original business plan to add 1,000 workers in each of its first three years of operation.
"It's all about timing, and they launched the airline in a cyclical industry downturn," said Gerald Bernstein, principal at Stanford Transportation Group. "As long as they have investors who are confident in them, they can continue with their business plan."
Investors in the airline, which is partly owned by U.K. billionaire Sir Richard Branson, include Branson as well as U.S. investors Cyrus Capital Partners, a New York-based hedge fund, and Black Canyon Air Partners LLC.
Virgin America is one of the best-financed U.S. airlines in history, having raised more than $300 million in addition to the new infusion of cash.
"We're seeing an overwhelming response to our new airline from the traveling public, so we're adding service to meet demand in time for the busy summer travel season," Virgin America President and CEO David Cush said.
The airline is projected to become profitable in 2010, company officials said.
Starting May 18, it will offer a new daily flight from SFO to Washington's Dulles International Airport that departs at 7:45 a.m. and arrives at 3:55 p.m. EST. A new return flight to SFO departs Dulles at 5:15 p.m. and arrives at 7:55 p.m. Pacific time.
On June 10, the airline will add a new flight from SFO to New York's John F. Kennedy Airport, departing SFO at 3:20 p.m. and arriving in New York at 11:55 p.m. Eastern time. The return flight leaves New York at 10:55 a.m. and arrives at SFO at 2:05 p.m. PST.
Starting June 25, additional flights from SFO to Seattle will depart at 6:45 a.m. and 1:35 p.m. and arrive at 8:40 a.m. and 3:30 p.m., respectively. The new Seattle-to-SFO flights will leave at 9:25 a.m. and 4:15 p.m., reaching SFO at 11:30 a.m. and 6:20 p.m., respectively.
From San Francisco, Virgin America also serves Los Angeles, San Diego and Las Vegas.
