FlyerTalk Forums - View Single Post - Why i$ B6 Getting $o Expen$ive?
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Old Jul 17, 2008 | 11:12 am
  #129  
Mimi Imferst
 
Join Date: Nov 2007
Programs: TrueBlue, HHonors
Posts: 339
Originally Posted by BlissWorld
It won't when Virgin America expands...
...its leg room, for one. As far as it relates to his question, being taller than average and liking the Jetblue product Virgin in its current form can compete on some of B6's amenities but comfort is not one of them. Their Y cabin is cramped. I'm also taller than average.

Beyond that, expanding costs money and by the fact that VX had to secure additional financing to fund the modest expansion it's already undertook begs the question of how long the money will keep flowing. If/when it stops they will be forced to try to make money for themselves. Hard to be a new, expanding airline in an economic climate where zero growth and negative growth are deemed to be prudent business decisions.

Also, don't confuse the fares we see now as any guarantee of future fares. VX is playing the bottom of the market to try and gain a following. Their product is superior in many ways to many airlines and that puts them in a unique position in the future, much like where Jetblue is now, to be a able to charge a premium for it. Their current fare levels seem to be completely unprofitable and so will not sustain the airline in the long run. As capacity comes down in some markets, VX's fares will rise just like every other airline's. IMO, enjoy the run of cheap(er) fares while it lasts.
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