Virgin America chooses empty seats over US$41 Dallas-NYC fares
Virgin America, caught up in a Dallas fare war, said it will fly out of the city with empty seats rather than sell tickets at rates so deeply discounted it can’t make money. The pricing battle began in 2014 when Southwest Airlines and Virgin added flights after restrictions at Dallas Love Field were lifted and ultra-discounter Spirit Airlines increased service from nearby Dallas-Fort Worth International, American Airlines’ biggest hub. Carriers trimmed fares to fill seats that flooded the market. While that’s no longer the case, the “very toxic fare environment” has continued, said Virgin America CE David Cush. “We are not going to fly passengers at rates that will not make money,” he said Thursday. “We are going to make sure we get an average ticket value up to where its sustainable and we can earn a return, and we’ll take the hit on load factor.” <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-02-19/unaligned/virgin-america-chooses-empty-seats-over-us-41-dallas-nyc-fares
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Virgin America chooses empty seats over US$41 Dallas-NYC fares
Virgin America, caught up in a Dallas fare war, said it will fly out of the city with empty seats rather than sell tickets at rates so deeply discounted it can’t make money. The pricing battle began in 2014 when Southwest Airlines and Virgin added flights after restrictions at Dallas Love Field were lifted and ultra-discounter Spirit Airlines increased service from nearby Dallas-Fort Worth International, American Airlines’ biggest hub. Carriers trimmed fares to fill seats that flooded the market. While that’s no longer the case, the “very toxic fare environment” has continued, said Virgin America CE David Cush. “We are not going to fly passengers at rates that will not make money,” he said Thursday. “We are going to make sure we get an average ticket value up to where its sustainable and we can earn a return, and we’ll take the hit on load factor.” <br/>