Virgin America Adds Capacity To Airline Industry

by Darren

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Virgin America is coming to the skies near you, adding capacity to the airline industry, which has been trying to cut back on its’ size due to expenses. Of course, the additional capacity will likely cause pressure on pricing for the industry at large.

irgin America’s inaugural flights will link its San Francisco hub with New York’s John F. Kennedy International Airport and Los Angeles. The airline, a brainchild of billionaire Richard Branson, plans to add direct New York to Los Angeles flights beginning Aug. 29 and more routes later this year, including service between Washington’s Dulles International Airport and the West Coast. It will also fly into Las Vegas.

Virgin America is offering round trip fares of $278 between New York and the West Coast. First-class round trips start at $778. Some airlines, including JetBlue Airways Corp., have already been forced to match Virgin America’s economy fares, while other airlines are offering even cheaper fares.

The company most at risk from Virgin America encroachment is Het Blue, which has routes in the same city, and is a smaller carrier to boot.

The competition shouldn’t be that intense for major carriers, as Virgin America will be running 19 daily flights, hardly enough to put a dent in most carrier’s numbers. JetBlue has already lowered prices in California in response to the new company’s operations.

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