Thursday, February 2, 2012

Virgin America takes off - San Francisco Business Times:

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U.K. billionaire Richard Branson, the airline'w part owner and founder, was aboard Virgin America's inauguralp flight to San Francisco's airport from New York That flight was expected to arrive in the Bay Area at1 p.m. Notableds such as San Francisco Mayod Gavin Newsom were part of festivitiesat SFO, which will be the main operationsx hub for the new carrier. Virgin America's first day of business marked a successfor Branson. The maverick Brit long had his eye on launching an Americajn carrier after starting other airlines likeand Australia's . Yet it was Branson'sa involvement in Virgin America that proved the biggest hurdlew for theupstart airline.
Rivao airlines successfully challengedVirgin America's operatinfg license for more than a year, claiming that Branson'sw involvement violated U.S. laws prohibiting foreigners from controllinhdomestic carriers. In response, Virgin Americz altered its corporate structure, distancing itself from foreign influence and agreed to replace its chiefexecutive officer, Fred Reid, an airline industry veteran who was hirede by Branson. Virgin America intends to competewith low-fare domestic carrieres like (NYSE: LUV) and (Nasdaq: JBLU). Along with competing on Virgin America will try to lure travelers with snazzy amenities likemood high-tech entertainment and plush seating. The U.S.
airline industry has undergone many changes in the time it took Virgimn America to reachits debut. Low-cost carriersa like Southwest and JetBlue, once the darlings of the are throttling back growth planes amidcost pressures. Southwest said it is offering buyoutx to 25 percent of its employees to helpcut

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