Virgin America’s CEO Wants to Avoid ‘Garbage Fares’
Photo Credit: Virgin America and Southwest Airlines planes taxiing in Los Angeles. Flickr / Paris Buttfield-Addison
Skift Take
The reality is that carriers like Virgin America are going to have cut prices even lower to compete with ultra low-cost carriers. Like it or not, "garbage fares" are here to stay.
Virgin America's focus on perks like in-flight video streaming from Netflix have helped its visibility in the U.S. air market, but it faces stern competition from the expanding ranks of low-cost carriers fighting for bookings from cost-conscious consumers.
On the company's most recent earnings call Virgin America president and CEO David Cush said the company will try to avoid undercutting the competition to keep its flights full.
One analyst on the call said
