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Start up airlines struggle to survive
In the airline industry, the fittest do not always survive. But that has not stopped start-up carriers like Virgin America from trying. (www.nytimes.com) Mais...
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Virgin could start with rational pricing. I have wanted to sample their transcon First Class, but it is priced north of $2000, which is roughly 30% higher than anyone else. In this economy, they must be brain dead.
VA pricing for the product is fair. First Class on VA is a lot more that FA on a legacy carrier.
And the author hinting that VA, JetBlue and SWA may not make it, sounds like someone has been drinking the legacy Kool-aid. To be in the associated with SWA is a good thing, they usually make money,
and provide great service.
And the author hinting that VA, JetBlue and SWA may not make it, sounds like someone has been drinking the legacy Kool-aid. To be in the associated with SWA is a good thing, they usually make money,
and provide great service.
I agree on JetBlue and SWA. As for VA pricing in the front cabin, it is still irrational,and I assume the real purpose of those 2 rows is to provide rewards for good customers.
VX (VA is V Australia) does not have an "Elite" level nor any upgrade programs for select passengers. They do offer a day of departure upgrade program for un-sold Main Cabin Select and First seats. These upgrades are available to anyone.
There is a small niche market on the trans-cons for people who are consistently willing to pay a premium for a better travel experience. Thus UA's "PS" and others.
I suspect that VX's small 8 seat First cabin is "right sized" and priced for that niche market.
For the rest of us, they do have a decent coach product at a fair price. I've heard that on certain days, the opportunity to "upgrade" is very low to nil, indicating they are selling the product at the price you feel is irrational.
VX's problem comes in operating the same fleet on their shorter routes where there aren't as many willing to pay a premium fare. That's where the day of departure upgrade program comes into play.
There is a small niche market on the trans-cons for people who are consistently willing to pay a premium for a better travel experience. Thus UA's "PS" and others.
I suspect that VX's small 8 seat First cabin is "right sized" and priced for that niche market.
For the rest of us, they do have a decent coach product at a fair price. I've heard that on certain days, the opportunity to "upgrade" is very low to nil, indicating they are selling the product at the price you feel is irrational.
VX's problem comes in operating the same fleet on their shorter routes where there aren't as many willing to pay a premium fare. That's where the day of departure upgrade program comes into play.
