VX cut capacity, cut A320 order and delay deliveries.

VX is far from healthy, I genuinely fear for them! http://www.bloomberg.com/news/2012-11-16/virgin-america-trims-flights-labor-cost-on-slower-winter.html

I agree. They appear to be struggling to eastablish an operation that will survive long term.

Seems like a smart move, even though it is in many ways a raging success, the airline has all of its launch and growth costs on the books at the same time, so that affects margins and this looks like a smart and steady move.

I'm not disputing it needs to be done. However, soon they're going to face huge increases in maintenance costs if they're not already. It's not a healthy airline, its 'raging' success is only short lived as they've found that people fly them, love them, but still go back to the legacy carriers.

I'm not disputing it needs to be done. However, soon they're going to face huge increases in maintenance costs if they're not already. It's not a healthy airline, its 'raging' success is only short lived as they've found that people fly them, love them, but still go back to the legacy carriers.

Why the downer on VX? Their Q3 turned a profit and forecast for Q4 is profitable too, perhaps they are taking the right decisions ...

Why the downer on VX? Their Q3 turned a profit and forecast for Q4 is profitable too, perhaps they are taking the right decisions ...

I'm not a downer on VX, in fact I'd argue I'm one of their biggest advocates having converted one of UA's biggest flyers to them amongst many others, however, I'm pointing to the reality of their situation.

I could well be wrong, but I read that their Q3 results had been written down to a loss and I'd be pleasantly surprised if Q4 is any different.

It's a fact that VX are scratching their heads when it comes to PAX. What I described above is accurate, people fly with them, love them, rave about them and then switch back to the legacy carriers.

VX are almost solely relying on a great flying experience, and you'd think it would be enough, but it isn't. VX are trying to do the JetBlue model but on the West Coast and their not even remotely successful in that respect. Why? Because unlike all other major carriers they don't have a monopoly on any single route that they operate, all the others have that monopoly on at least 25% of their network.

As I said before, VX's expenses are about to go through the roof and it'll be interesting to see how they handle it.

And to cap all that off, you hear stories like this: http://crankyflier.com/2012/09/18/jetblues-call-center-marketing-advantage-over-virgin-america-guest-post/

As I say, I'm not a downer on them, not even close, but I honestly believe they're not in good shape. I have some good friends at VX, including in senior positions, and I honestly hope they continue for a long, long time but they can't carry on as they are.