Virgin Territory

Virgin's Richard Branson has announced he is planning to launch 'Virgin America', a low-cost carrier targeted at the turbulent US domestic market.

Virgin’s Richard Branson has announced he is planning to launch ‘Virgin America’, a low-cost carrier targeted at the turbulent US domestic market. Springwise normally limits itself to proven new business ideas, but when big companies announce spanking new services, we figure we’d better pay attention. Especially if those companies include cult-brand Virgin. Not content with already owning carriers Virgin Atlantic, Virgin Express (in Europe) and Virgin Blue (Down Under), founder Richard Branson has announced he will, possibly before the end of this year, launch ‘Virgin America’, a low-cost carrier targeted at the turbulent US domestic market. A Virgin spokesperson told the Sunday Times that the US airline would cost around USD 15 million to launch, with a fleet of six to eight aircraft operating domestic routes based on the low-cost model pioneered by Southwest Airlines. The group expects to grow the airline organically for two to three years before taking it to market. (Source: Travelbiz.com.au.)

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