juventus
Posts: 2017
Joined: Tue Dec 07, 2004 11:12 pm

Virgin America Sparks Fare War On NY-California

Tue Jul 24, 2007 11:00 pm

source-Bizjournals.com

The fare wars have begun.

JetBlue Airways Corp. said it will match fares on routes where it competes with Virgin America Inc., the startup airline owned in part by U.K. billionaire Richard Branson.


JetBlue (NASDAQ: JBLU) is offering round trip tickets for $278 between New York City and Los Angeles and New York City and San Francisco.

Dallas-based Southwest Airlines Co. (NYSE: LUV) said it matched fares on one route and that its fares were lower than Burlingame-based Virgin America's on others, according to a Bloomberg story.

http://airlinepilotcentral.com/frame/news.html
 
BigGSFO
Posts: 2219
Joined: Sun Jun 12, 2005 5:27 am

RE: Virgin America Sparks Fare War On NY-California

Tue Jul 24, 2007 11:08 pm

VX is also offering $389/OW F class to both JFK and IAD. I might just try them out - massage chair and all.
 
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LAXintl
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Joined: Wed May 24, 2000 12:12 pm

RE: Virgin America Sparks Fare War On NY-California

Wed Jul 25, 2007 12:12 am

I would not say the economy fares are a big deal especially headed into the fall. I've regularly seen CA-NY economy fares down to ~$220 during skirmishes between Jetblue, AA and Song.

A bigger deal in my opinion however as BigGSFO mentions is the cheapness of first class. AA interestingly over the weekend matched with its own $800 R/T business class fare, which over a 50% drop from normal. United has not matched, however as a regular transcon flyer I'd say $800 for Virgin's first class or AA's business class is quite a bargain.
From the desert to the sea, to all of Southern California
 
juventus
Posts: 2017
Joined: Tue Dec 07, 2004 11:12 pm

RE: Virgin America Sparks Fare War On NY-California

Wed Jul 25, 2007 12:52 am

Quoting Laxintl (Reply 2):
United has not matched, however as a regular transcon flyer I'd say $800 for Virgin's first class or AA's business class is quite a bargain.

The legacies have not matched, (UA, AA, CO and DL). I wonder if they are waiting for one to jump in first, then the others will follow. Or perhaps they will leave this "fare war" to the LCCs.

Personally, I believe that as soon as one a legacy matches, the others will follow.....
 
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LAXintl
Posts: 20505
Joined: Wed May 24, 2000 12:12 pm

RE: Virgin America Sparks Fare War On NY-California

Wed Jul 25, 2007 1:11 am

Quoting Juventus (Reply 3):
The legacies have not matched,

Yes they have.

AA(biz) and NW(first) both have $800 premium fares.

For economy, AA & DL are both selling <$300 fares matching those of Jetblue.
From the desert to the sea, to all of Southern California
 
FriendlySkies
Posts: 3540
Joined: Fri Aug 13, 2004 3:57 pm

RE: Virgin America Sparks Fare War On NY-California

Wed Jul 25, 2007 1:54 am

Quoting Laxintl (Reply 2):
United has not matched

I don't think they will...perhaps in economy, but with the p.s. service UA is going after a crowd that, IMO anyway, probably wouldn't fly VA no matter how cheap it was. As long as UA can fill their premium seats there's no point in matching fares. And I don't think VA is going after p.s. in any way, especially not with their F class offering.
 
aajfksjubklyn
Posts: 458
Joined: Wed Jul 25, 2007 10:46 pm

RE: Virgin America Sparks Fare War On NY-California

Sat Jul 28, 2007 10:55 am

Just got back from JFK after dropping off the man for his 2 hour delayed flight to SJU, saw a Virgin America plane hiding in a corner just as you enter airport from Nassau Expressway and get on JFK expressway...looked like it was tucked away hiding from Jet Blue..  Smile
 
Bicoastal
Posts: 2446
Joined: Wed Oct 06, 1999 5:56 am

RE: Virgin America Sparks Fare War On NY-California

Sat Jul 28, 2007 11:41 am

Quoting FriendlySkies (Reply 5):
I don't think they will...perhaps in economy, but with the p.s. service UA is going after a crowd that, IMO anyway, probably wouldn't fly VA no matter how cheap it was. As long as UA can fill their premium seats there's no point in matching fares. And I don't think VA is going after p.s. in any way, especially not with their F class offering.

I agree. I hope UA sits back and lets WN, Virgin and JetBlue fight it out. UA has a nice hub going at SFO with tons of international flights and a better domestic network. UA should focus on its loyal Mileage Plus and premium following. No need to race to the bottom at SFO as it is at DEN where no airline is making money.
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