Virgin America Plans Dallas Flights, But Chicago Slipping
August 10 2010 - 10:23AM
Dow Jones News
Virgin America Inc. announced plans Tuesday to launch services
from Dallas-Fort Worth International Airport in a rare foray by a
low-cost carrier into the "fortress hubs" dominated by network
airlines.
The privately-owned U.S. airline plans to start two daily
flights from Los Angeles and San Francisco in December to DFW, an
airport where American Airlines accounts for almost three-quarters
of flights.
"It's kind of poking the tiger," said David Cush, Virgin
America's chief executive and a former staffer at AMR Corp. (AMR),
American's parent.
Cush said American's dominance was key in selecting the
fourth-busiest U.S. airport as Virgin America's 12th
destination.
Los Angeles is the second-busiest route from DFW after Atlanta,
and American offers 16 daily departures. The only other direct
service is two regional jet services operated by the United Express
arm of UAL Corp. (UAUA). Cush said that lack of choice for
passengers made DFW an attractive opportunity, and he hopes to add
a third daily flight within six months.
Virgin America has also been trying to start services from
Chicago O'Hare - a hub dominated by American and United - for more
than two years, but Cush said he was less optimistic than ever that
it could reach a deal with the city.
"It seems like that trail's gone cold," he said, though Virgin
has two aircraft ready to start services from the second quarter of
next year if a solution is found.
Cush cited an impasse between the City of Chicago and Delta Air
Lines Inc. (DAL) over the transfer of unused gates at O'Hare's
Concourse L.
-By Doug Cameron, Dow Jones Newswires; 312-750-4135;
doug.cameron@dowjones.com
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