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Everyone Loves Virgin America, Except the Investors Who’ve Lost $675 Million

Excerpt from New York Times

Sep 07, 2013 2:18 pm

Skift Take

Virgin will need to look beyond the cool cities and focus on the routes where it can make the most money, as well as use its position as a flyer favorite to extract more creative fees.

— Jason Clampet

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Reuters

The first Virgin America flight lands in San Francisco. Reuters


Virgin works hard to convey an easy vibe — a flirty package of self-awareness and charisma bathed in purplish mood lighting that has earned glowing consumer reviews and challenged the idea that an airline can’t wow its passengers.

But if the airline has worked for consumers, it hasn’t worked for its investors…

Virgin’s combination of consumer popularity and lack of profitability raises a question: Can it make money and still be beloved? A few — like JetBlue and Southwest — have managed that. But the tried-and-true method of most United States carriers has been to cut back on customer service.

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