Virgin America Elevate - New (or Old) Investors?

Sounds like original VX investors 'Cyrus' want another bite of the pie:

Virgin America, the carrier founded by Sir Richard Branson, is seeking US approval for a new slate of domestic investors it expects will end a rival’s bid to challenge the company’s ownership structure.

... the airline would receive new capital from a group of investors that includes Cyrus Capital Partners ... Cyrus, a New York hedge fund, was one of Virgin America’s original shareholders.

http://www.ft.com/cms/s/0/6c947c28-6cc2-11de-af56-00144feabdc0.html

New round of venture capital, eh? So much for profits in '10. :p

Realistically, though, I think they have to do this. They're mostly out of planes to go to places like ORD that they need as part of their network, and that means buying more planes.

New round of venture capital, eh? So much for profits in '10. :p

Realistically, though, I think they have to do this. They're mostly out of planes to go to places like ORD that they need as part of their network, and that means buying more planes.

As I read the article, this is not new capital. This is just replacing the withdrawn investment that is the cause of the domestic ownership issue at DOT.

Besides, the last thing that any airline needs right now is more planes.

Besides, the last thing that any airline needs right now is more planes.

Go look at VX's fleet size and destinations. Simply put, even with the plane back from DirectAir, they're going to need to expand the fleet at SOME point if they want to keep expanding service, especially if they want to go to mid-con destinations like ORD, or add more transcon like SFO-MIA...

Go look at VX's fleet size and destinations. Simply put, even with the plane back from DirectAir, they're going to need to expand the fleet at SOME point if they want to keep expanding service, especially if they want to go to mid-con destinations like ORD, or add more transcon like SFO-MIA...

At some point, yes. But now, I don't think so.

They are not making any money flying their current routes. It seems unlikely that they would make any flying new routes. It doesn't make sense to invest in more planes until they are at or close to break even. That may take a while.

At some point, yes. But now, I don't think so.

They are not making any money flying their current routes. It seems unlikely that they would make any flying new routes. It doesn't make sense to invest in more planes until they are at or close to break even. That may take a while.

IMHO - new routes would help strengthen their existing routes (domestic connections).

Carefully selected destinations would further increase loads via the VA codeshare - VA has to use NW and AS for many US destination. The right destinations would also make a VS codeshare more appealing - leading to even more ppl on VX planes.

I think VS pax (like VA pax) would prefer to fly "Virgin" all the way, rather than change brands part way through their journey.

As techboy mentioned, the investment is so vx doesn't get shut down by FAA for not having enough american ownership.