tcook052
Mar 19, 10, 7:54 am
http://www.financialpost.com/story.html?id=2700469
Virgin America, the U.S. affiliate of Sir Richard Branson's U.K.-based carrier, said it plans to begin daily flights to Toronto from Los Angeles and San Francisco as early as June 23, subject to regulatory approval. The carrier plans a splashy launch with Sir Richard in tow when it begins flying the routes, which are now served by only Air Canada, United Airlines and American Airlines Inc.
WestJet Airlines Ltd. serves the L.A. and San Francisco markets, but only from Vancouver and its base in Calgary.
David Cush, Virgin America's chief executive, said the flights to Toronto will mark only an initial foray into Canada. He said the airline will likely fly to Vancouver in a year, and a partnership with WestJet is also a possible if the carriers can agree to mutually beneficial terms.
"We think it's a market that can use a little more capacity," Mr. Cush said. "We're being conservative with only one flight a day going in from each place." The result of the low-cost carrier's expansion into other destinations has been to drive down fares, he said.
Not only does Virgin offer slightly lower fares, it offers them on one-way tickets.
It also doesn't raise prices until one week before departure, while most airlines do so two weeks out.
"In general, when we go in with a one-way fare structure, our competitors match," he added.
Mr. Cush said he would also consider striking a code-share agreement with WestJet now that the Calgary-based airline has its new reservation system in place. He and WestJet's incoming chief executive, Gregg Saretsky, worked closely on a similar arrangement when Mr. Cush worked at American and Mr. Saretsky worked at Alaska Airlines.
The deal would essentially allow WestJet to seamlessly move its passengers onto Virgin's planes, and vice versa, using only one ticket.
Mr. Cush said any such arrangement would be a few years down the road and cautioned that no discussions had taken place yet.
WestJet is always open to such discussions, but does not disclose names for competitive reasons, Mr. Saretsky said in an email yesterday.
Virgin America, the U.S. affiliate of Sir Richard Branson's U.K.-based carrier, said it plans to begin daily flights to Toronto from Los Angeles and San Francisco as early as June 23, subject to regulatory approval. The carrier plans a splashy launch with Sir Richard in tow when it begins flying the routes, which are now served by only Air Canada, United Airlines and American Airlines Inc.
WestJet Airlines Ltd. serves the L.A. and San Francisco markets, but only from Vancouver and its base in Calgary.
David Cush, Virgin America's chief executive, said the flights to Toronto will mark only an initial foray into Canada. He said the airline will likely fly to Vancouver in a year, and a partnership with WestJet is also a possible if the carriers can agree to mutually beneficial terms.
"We think it's a market that can use a little more capacity," Mr. Cush said. "We're being conservative with only one flight a day going in from each place." The result of the low-cost carrier's expansion into other destinations has been to drive down fares, he said.
Not only does Virgin offer slightly lower fares, it offers them on one-way tickets.
It also doesn't raise prices until one week before departure, while most airlines do so two weeks out.
"In general, when we go in with a one-way fare structure, our competitors match," he added.
Mr. Cush said he would also consider striking a code-share agreement with WestJet now that the Calgary-based airline has its new reservation system in place. He and WestJet's incoming chief executive, Gregg Saretsky, worked closely on a similar arrangement when Mr. Cush worked at American and Mr. Saretsky worked at Alaska Airlines.
The deal would essentially allow WestJet to seamlessly move its passengers onto Virgin's planes, and vice versa, using only one ticket.
Mr. Cush said any such arrangement would be a few years down the road and cautioned that no discussions had taken place yet.
WestJet is always open to such discussions, but does not disclose names for competitive reasons, Mr. Saretsky said in an email yesterday.