Dutchjet From Netherlands, joined Oct 2000, 7864 posts, RR: 57
Reply 4, posted (8 years 1 week 3 days 7 hours ago) and read 4628 times:
With no set start up date, VA must do something, having eight very expensive brand new airplanes sitting on the ground for the coming months is not the answer. It will be interesting to see what happens.....
The extra financing is going to raise even more issues......now everyone will want to know who would offer VA another $53 million? And we are all guessing the same answer. This case just got more difficult.
ADXMatt From United States of America, joined Jul 2006, 951 posts, RR: 2
Reply 6, posted (8 years 1 week 3 days 5 hours ago) and read 4466 times:
Quoting HikesWithEyes (Reply 3): The article doesn't mention whether they will be wet or dry leases.
I would be surprised if VA crew (if there is such an animal) actually
I would think that it would have to be a dry lease as they are not a certificated carrier. On a wet lease the a/c is flown under the owners certificate. (i.e. Air Mike B764 is flown under the CAL certificate, pilots, dispatchers etc.)
Worldsurfer From United States of America, joined Jun 2006, 128 posts, RR: 0
Reply 7, posted (8 years 1 week 3 days 5 hours ago) and read 4432 times:
I saw 4 Virgin America Aircraft parked in a remote area in YUL on friday , 2 of them had the full Livery and 2 had just red engines and red tails , but no words painted on them. I could not tell if they were A319's or A320's.
I'd imagine that they'd only be able to lease/sublease the actual airframes without being a certificated air carrier. All that throws a bit of a wrench into their potential startup plans if/when the DOT does issue them a certificate, since they'd obviously be bound by the terms of any leases they might sign for the aircraft. You can bet that Continental's lawyers are going to jump on the source of new financing; if it's not from a bona-fide U.S. source, I think you can stick a fork in Virgin America.
Eight Airbus narrowbodies are awfully expensive capital assets on which to have to be eating lease and/or financing costs for an extended period. I'd guess they're burning $1.5 to 2 million per month just on parked airplanes. Not to mention that if JetBlue's startup is any guide, they're also burning a similar amount each month on salaries and overhead. The longer Continental and other network carriers can delay Virgin America's start, the more susceptible the new carrier will be to a protracted fare war which is IMO inevitable.
The other interesting little tidbit -- Virgin America's code is going to be VX.