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Virgin Territory

Mobility & Transport

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.)

Opportunities

With Australian sibling Virgin Blue performing well, and with Virgin products and services already popular in the US (from Virgin Mega Stores to Virgin Atlantic to Virgin Mobile phones), this initiative may fly quite high, especially when blessed with the signature flair and fun of the Virgin brand. Let’s see what United Airlines’ future low cost airline (code name ‘Starfish’), Delta’s in-the-works ‘Song’ and incumbents JetBlue and SouthWest Airlines have in store for the Brits. Whatever the outcome, the arrival of more low cost airlines represents plenty of opportunity for caterers, aviation suppliers, advertising agencies, real estate agents… the sky is the limit! And yes, with low cost carriers taking off around the world, we WILL soon bring you an overview of ALL related new business opportunities popping up in this arena. AND we’ll have more about Virgin’s retail approach to selling cars. But there’s only so much we can cram into one newsletter!

Website: prod.springwise.pro.pugpig.com/virgin_territory/

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