Virgin America Plots American-Southwest Showdown in Texas

[Hatu]

Virgin America Inc., the discount carrier partly owned by U.K. billionaire Richard Branson, wants to step up competition with American (AAL) Airlines Group Inc. and Southwest (LUV) Airlines Co. on their home turf in Texas.

The plan pivots on acquiring two gates American is selling at Dallas Love Field, a Southwest bastion, Virgin America said today. The Burlingame, California-based airline would exit the regions major airport, Dallas/Fort Worth International, and fly from Love to American hubs in Chicago and Washington.

Virgin Americas gambit would create a competitor at an airport where Southwest commands about 97 percent of travelers and that is less than half as far from downtown Dallas as D/FW, Americans largest hub. American fought for years to retain Love Fields nonstop-flight limits before a 2006 accord to lift those curbs later this year.

http://www.bloomberg.com/news/2014-03-05/virgin-america-plots-american-southwest-showdown-in-texas.html?cmpid=yhoo

 

[jimntx]

Now, there's a classic case of understatement (or, proof that the Bloomberg reporter has never been to Dallas)...
 
Love Field "is less than half as far from downtown Dallas as D/FW." No kidding! Since Love Field is IN Dallas, it would, by definition, not be far from Dallas. If the reporter meant distance from downtown Dallas...well, considering that (according to Google Maps) it is 6 miles from DAL to downtown and 18 miles from DFW to downtown, saying that it is less than half is a safe statement. (Actually, I think it is further than 18 miles. I live 2 miles closer to DFW than the downtown address I used for the plot. According to my odometer it is over 20 miles just to the employee parking lot at DFW, and that is about two miles from the terminals.

Have a question for those who know...assuming that Virgin runs maximum number of flights possible out of those two gates every day, how many flights/day to ORD, LGA, or LAX (or wherever. The article says "to American hubs.") could they operate? I don't see that AA or WN should be quaking in their boots.

 

[swamt]

There was an article that compared the 3 airlines SWA, VX and DL.  By using the max flights each carrier has said they would fly, they did a total number of seats that each one would be offering.  Dl came in last with the fewest number of seats being offered.  VX came in second and SWA came in first with the most number of seats being offered.   Delta is out of the selection process, as the DOJ has already stated.  The selection between SWA and VX will be a tough one I think.  However, VX is not a true LCC, but is always considered an "Affordable luxury carrier" so even if VX does get the gates, pretty sure they will be charging more than SWA, plus, pretty sure there will be an all out fare war between the two.  Jim, I don't think it would of mattered if any carrier got those 2 gates.  No one will be able to do much with just 2 gates at LF, so yeah, no one will be quaking in their boots.

 

[eolesen]

http://aviationblog.dallasnews.com/2014/04/were-guessing-that-virgin-america-is-getting-the-two-american-airlines-gates-at-dallas-love-field.html/

Virgin America on Wednesday afternoon said it will have a big announcement at an aviation facility along Love Field’s Lemmon Avenue side Friday morning, with CEO David Cush and chairman Don Carty in attendance.

On No. 3, the purpose is “ to discuss the future of our Dallas operations.”

 

[WorldTraveler]

doesn't it just grate to see the name Don Carty alongside the name of an AA competitor?

 

[eolesen]

That's the best you can come up with?...

Imagine it was Ron Allen running things at VX instead of Don Carty.

It is almost as significant as it is to the average US employee that Dave Seigel is CEO at F9.


In case you haven't figured it out yet, it's pretty safe to say those three weren't exactly missed when they were forced out of their respective jobs.

Don is a smart guy, but being smart is mutually exclusive with being an effective leader. Don failed entirely at that. He didn't motivate people to do better, nor did he set any sort of example you'd want people to follow.

So grating?

Hardly. Maybe a little sympathy now and then.

 

[WorldTraveler]

he is still one of the number of former AA execs that are now leading other airlines.

We wouldn't expect you to acknowledge that any of them were good at what they did at AA but they still bring a lot of knowledge about AA to their new companies.

It also can't be missed that VX' primary competitive target has been and remains AA. Despite the predictions some had that VX would focus on DL, they not only haven't done that but they have strengthened their focus on AA's core markets.

 

[eolesen]

Are you living in Colorado or Washington now?... Apparently you missed the entire discussion from last month where I pointed out how AA has long been recognized as the Wharton School for the industry. More airline CEO's got their start at AA than any other company.

Carty was smart. But being smart and being effective are mutually exclusive.

He is also very aloof, and the poorest example of a leader I've personally encountered.

You don't show up to work (daily) with a chauffer at the same time you're asking all of your employees to take 15%+ paycuts, you don't change long standing travel policy just to accommodate your wife or toddler, and you certainly don't make SEC filings which cover your own ass without communicating them and/or fully understanding the ramifications of timing those to coincide with union votes on concessions...


If you're correct that VX is set on targeting AA, then they've taken an awfully odd approach in doing so. I suspect AA finds them as inconsequential as a few weeds along the back fence, and has little concern over their winning the bidding on the various assets they were able to monetize as a result of the DOT settlement.

 

[eolesen]

Virgin says they've come to terms with both the DOJ and American, now the City has to approve it...

Schedules published:

http://www.virginamerica.com/press-release/2014/virgin-america-lands-love-airline-brings-new-business-friendly-flights-to-dallas-love-field.html