SInGAPORE_AIR
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Virgin Group To Launch Virgin America

Mon Mar 24, 2003 1:14 am

Virgin Group is apparently to launch Virgin America (formely known to us and insiders as Virgin Red).

More soon...
Anyone can fly, only the best Soar.
 
UN_B732
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RE: Virgin Group To Launch Virgin America

Mon Mar 24, 2003 1:16 am

ANOTHER Startup! Geez. At least this one has C A P I T A L.
-Transaero Boeing 737-200
What now?
 
exusair
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RE: Virgin Group To Launch Virgin America

Mon Mar 24, 2003 1:19 am

I thought that there was a statute on foreign ownership of domestic U.S. carriers that limited it to about 40% of proprietorship.

How does Virgin intend to circumvent this law?
 
SInGAPORE_AIR
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RE: Virgin Group To Launch Virgin America

Mon Mar 24, 2003 1:20 am

Just while I trace the article, try trying

http://www.virginamerica.com
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teahan
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RE: Virgin Group To Launch Virgin America

Mon Mar 24, 2003 1:23 am

Well this has been talked about for months (years?) so I'll believe it when it is officially announced.

Jeremiah
Goodbye SR-LX MD-11 / 6th of March 1991 to the 31st of October 2004
 
SInGAPORE_AIR
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RE: Virgin Group To Launch Virgin America

Mon Mar 24, 2003 1:25 am

Can't find the source article but it's very very summarised here:

"The newspaper reports that Virgin is in discussions with US-based investors and has decided to launch a new venture rather than buy into a struggling existing airline with a high cost base"

This Is London .com
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SInGAPORE_AIR
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RE: Virgin Group To Launch Virgin America

Mon Mar 24, 2003 1:39 am

Stupid link above. That article told me the wrong paper. FOR SHAME.

Anyway...

----
Virgin Group is to launch a low cost airline in the U.S.A. initially named Virgin America with a bunch of U.S. investors. They decided to launch a new airline rather than buy into an existing airline with high costs.

Under U.S. law, Virgin Group must be a minority shareholder and if it owns 50%, it can only have 25% of voting rights. "We started the process at the beginning of the year and we are talking to institutional investors. There is a lot of interest."

Estimates from the Group are that it will cost US$15 000 000 to launch the airline with 6 - 8 planes. "We will grow it organically for two to three years then take it to the market," he added.

More information at the Daily Telegraph website

Information was gathered from the above hyperlinked webpage. Full information can be viewed by clicking the above hyperlinked webpage. nformation was rephrased and not copied and pasted unlike others with the exception of quotes.
Anyone can fly, only the best Soar.
 
bmi330
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RE: Virgin Group To Launch Virgin America

Mon Mar 24, 2003 3:21 am

Take it the plan will be wait to one a the U.S. majors goes belly up and plug part of the hole left. Also dose Branson maybe no something that everyone else doesn't about USA-UK open skies ? Can't see Branson let someone else control his business interests.
 
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STT757
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RE: Virgin Group To Launch Virgin America

Mon Mar 24, 2003 3:35 am

I think the US could allow 100% ownership rights for foreign investors to a US airline if certain restrictions are put in place.

They could allow an investor like Sir Richard Branson 100% ownership of a US airline provided that the airline...

1.) Provides only domestic service.

2.) Does not operate out of slot restricted Domestic Airports such as LGA, DCA, ORD.

3.) Provides some form of vital air service for under served areas of the US.

4.) I know the EU would have a hissy fit, but some sort of "Gentleman's" agreement to buy only Boeing would be a nice gesture.

5.) Guarantees job security and extended health benefits for airline employees who serve in the Reserves or National Guard, provide them with health insurance and guranteed job protection should they be called up for active duty. Anyone from Pilots to ticket agents.
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HlywdCatft
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RE: Virgin Group To Launch Virgin America

Mon Mar 24, 2003 4:16 am

Will it be like a Virgin Connector sort of like North American is for El Al?
 
Ikarus
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RE: Virgin Group To Launch Virgin America

Mon Mar 24, 2003 7:03 am

HlywdCatft:

Presumably not - more like Virgin Blue, a separate business sharing the brand name, but not much else.

Personally, I can't help but think it optimistic to start an airline with $15 million, in the USA, anytime soon.

Besides, the American market is much more served than the Australian one. Southwest, AirTran, JetBlue, Frontier.... there seem to be more low-cost airlines, and the holes in their networks aren't that great, are they?

OK, so waiting until UA liquidates and trying to scavenge some routes and slots may be a decent idea, but you can bet there's a long line of airlines waiting to do just that... can't see a partially British owned startup grabbing all the goodies...

Regards

Ikarus
 
MSYtristar
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RE: Virgin Group To Launch Virgin America

Mon Mar 24, 2003 7:05 am

Branson has said numerous times that he'd send Virgin Atlantic to New Orleans if he could get the extra slot...maybe Virgin America will make an appearance here. Perhaps a ticket counter inside the Virgin Megastore downtown? That would be sweet.  Smile


Stephen in New Orleans
 
HlywdCatft
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RE: Virgin Group To Launch Virgin America

Mon Mar 24, 2003 8:01 am

Arent there some kind of US Laws that prevent international carriers from setting up domestic services in the U.S.?
 
bmi330
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RE: Virgin Group To Launch Virgin America

Mon Mar 24, 2003 8:14 am

This might be a little cynical but could the USA in return for British support in the current world climate see the Americans settling Bermuda 2 where UK ownership say XX% is aloud and they are aloud to operate dometic US routes and in turn open sakes at LHR. It would also help stop monopolizing certain US markets if more than one major goes belly up. Bit far fretched but you never no it would also antagonize other European counters such as France if it continues to get petty.
 
N863DA
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RE: Virgin Group To Launch Virgin America

Mon Mar 24, 2003 9:18 am

As I said in the other thread, jetBlue is REALLY going to hate this, since it is with Branson's help and that of many of his Virgin cronies that B6 was set up.

Call B6 (1-800-JETBLUE) and ask them why a large portion of their executives, pilots and other employees are all British...

Of course, nothing could ever be written down because then it would have been quite the scandal.

N 8 6 3 D A
 
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STT757
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RE: Virgin Group To Launch Virgin America

Mon Mar 24, 2003 9:57 am

Most folks (especially in the Government) would have no quarals with allowing British ,Australian or even Canadian companies to own and operate US Domestic Airlines, however they would not be warm to the idea of anyone else (especially the French or the Chinese).

So if it could be done they might do it, it depends on how much bs they are willing to tollerate from the French EU etc.

Right now they don't care what the French say, or the EU.

So maybe..
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ConcordeBoy
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RE: Virgin Group To Launch Virgin America

Mon Mar 24, 2003 10:52 am

Branson has said numerous times that he'd send Virgin Atlantic to New Orleans if he could get the extra slot

Actually, it's not a slot problem which is preventing him from coming here; it's the fact that MSY is no longer among the 29 LON gateways permitted by Bermuda 2.  Sad



maybe Virgin America will make an appearance here

Not unless BOS, JFK, EWR, BWI, IAD, PIT, PHL, RDU, CLT, ATL, MCO, TPA, MIA, DTW, CVG, CLE, ORD, STL, IAH, DFW, MSP, DEN, PHX, LAS, SAN, LAX, SFO, or SEA gives up its rights.... fat chance  Sad
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