Virgin America adds Florida routes

Virgin America Inc., the low-fare airline partly owned by U.K. billionaire Richard Branson, is studying whether to fly to Atlanta, Dallas and Austin, Texas, as it adds Florida routes, Chief Executive Officer David Cush said. “Atlanta is certainly on the list. It’s a big corporate headquarters city,” Cush, 49, said in a telephone interview. “We have analyzed Dallas and Austin, places with big corporate and technology bases that certainly would have some synergies with San Francisco and Los Angeles.”

Serving Atlanta and Dallas would put Virgin America into the hometown airports of Delta Air Lines Inc., the world’s biggest carrier, and No. 2 American Airlines. Chicago, where rivals have so far refused to cede gates, remains at the top of Virgin America’s expansion choices, Cush said.

“Virgin would be going into the heart of these big hubs, and neither competitor would back off,” said Michael Derchin, an analyst at FTN Equity Capital Markets Corp. in New York. “They’ll be met with some fierce resistance. If they could make those flights break even, they could probably make it work.”

Virgin America, which began flying in August 2007, unveiled Fort Lauderdale, Florida, as its 10th U.S. market today. Flights start Nov. 18 from San Francisco and Los Angeles, Bloomberg reports.

Source: Transportweekly