Virgin USA - think it will work???

[noflow]

I've sent the folks at Virgin USA a resume but I don't know much about Virgin. I know Branson has a low cost airline in Oz. What do you think about his chances in the US? I'd actually be happy with a SFO base since I've got family nearby.

[chimbu warrior]

I think it will be a winner, partly because the industry in the US led the world up until about 10 years ago, and then for some reason stopped innovating and developing. Too much of the US airline industry (Southwest, Jetblue - and to a degree America West - excepted) is living in the past.

Virgin USA (or whatever it ends up being called) will bring fresh ideas, but from a potential employee's point of view you will need to adjust your thinking too. It won't be like working for one of the legacy carriers...........10 days a month and 200 grand is a thing of the past. It will be a fun place to work, and you will have the added benefit of knowing your company will be one of the "survivors".

[druglord]

I think the last thing the US needs is another LCC, Indy air just started up this week, all the majors are trying their hand at it, US Airways is trying to be one before they go out of business, and you've got all the newish airtrans/Jetblue. Brokers steer clear of airlines because the industry is inundated with competition right now. Having said that, branson IS the man with the midas touch.

[TIMMEEEE]

Chimbu Warrior.

I think you just might be wrong about Jet Blue in this case.

Just saw a program on CNBC Asia about airlines and the ability to be innovative.
Jet Blue makes the others - particularly Virgin look like rank amateurs.
Everything from work practices at Jet Blue (booking staff can work from home with a really good system of phone/computer hook ups) to the fact that the CEO knows most of the staff on a first name basis and actively performs menial duties such as cleaning aircraft so he gets a first hand idea of whats going on.

Their ticketing conditions are very basic and simplicity seems to be the order of the day rather than complex systems which are time consuming - especially with load control etc.
Their pilot rostering principles Chimbu are applauded by most of their pilots (apparently very happy) unlike most Virgin pilots I know of.

I would defy Richard Branson to be half as innovative or get his hands dirty!!
The CEO and owner works at running the company with a family type atmosphere and gets the best out of his staff without having to resort to the shenanigans of Richard Branson.

They also had a no-sacking policy when things got bad a few years back and the staff seem to give their all so to speak.

We dont hear about certain Virgin operations which have been shut down over the years in Europe (Virgin Sun) or when things arent so sweet - such is the ability of the Branson 'spin machine'.
Not to mention the fact that Virgin Atlantic came that close to pulling the pin altogether after 9/11.
If it wasnt for Singapore Airlines having a large share this company would have been either history or reduced by more than half in size.

Lets see how well they do in Australia with real competition and not having everything handed to them on a platter (especially airlines such as Ansett falling over) etc.
Jetstar will hurt certain portions of their operation.
They already have problems with engineering and not to mention the fact that they are having difficulty in meeting the forecast projections as outlined in their prospectus.
Their rostering principles are constantly coming under fire from the pilot group with no seeming end in sight.

Having a share price hammered way below its initial issue is not only worrysome to those at VB but indicative of a lack of faith by institutional investors.

Virgin USA may do ok but they have alot of competition already.
Calling them 'survivors' is a luxury I wouldnt afford any start up lower cost carrier Chimbu.

Your experience in working for them must give you an insight I fail to share.

[chimbu warrior]

Timmeeee......you may just want to read my post again (slowly this time), as I think you will see that we are in agreement on most things - I DO believe that Jetblue are innovative, and refreshingly so.

It is just the sort of things you refer to that make a successful business and a pleasant workplace.

With regard to the VB shareprice, sure it is below par, but then again was QF not in the same situation in about '98? Incidentally I am not a shareholder, and not interested in becoming one.

I am also not a Branson fan (nor employee); the point I was trying to make is that too many of the "legacy" carriers in the US are stuck in the last century when it comes to confronting the challenges before them, and in particular their LCC spinoffs are a woeful attempt to address the changing market.

[druglord]

Yes unfortunately "stuck in the past" also means the pay scales that airline pilots once enjoyed are gone forever. US Air just put out a new pay scale for their furloughed captains to take 58k for flying the new E170 with their spin off carrier Mid Atlantic. The cost of innovation eventually hits the pilots back pocket.