Richard Branson’s flight plan
“We’re going to shake up the market,” billionaire Richard Branson tells Time Magazine. He expects Virgin America to be profitable within two years. Both his British and Australian airlines opened to wide skepticism, and both are now profitable billion-dollar businesses. He is now laying out a flight plan for the next great American airline. Can an economy ticket from Los Angeles to New York cost less than $300. Branson seems to think so. Branson points out several ways in which Virgin America differs from traditional U.S. airlines:
- the planes are new, fuel-efficient Airbus A320s, with comfortable leather seats and electrical outlets at every seat
- passengers can order food from a touchscreen at their seats, and pay by credit card
- the airline flies only popular and profitable routes
- the airline eschews the hub-and-spoke system that can contribute to delays and cancellations
- associations with Virgin Atlantic, Virgin Blue and V Australia allow for marketing opportunities on international routes
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