Global Traveler: What does Virgin America offer a business traveler in North America?
David Cush: We tailor the airline experience to be individual and flexible. For example, we offer food and drinks on demand, allowing customers to order from their seatbacks. With no carts in the aisle, customers feel free to order what they want, when they want. Other amenities include a large in-flight entertainment selection, offering live TV, Pay-Per-View movies, MP3s, foreign language selections and more. Power ports are located under the seats, and by early 2009 all our planes will be outfitted with onboard Internet — features which will surely be attractive to the business traveler. Virgin America is the closest thing to private air travel that a passenger can experience on a commercial carrier. Another great program is Elevate, our points-based frequent-flyer program with no black-out dates.
GT: Elaborate on Virgin Atlantic’s first-class product.
DC: Our product is truly unique in domestic travel because it offers an international seat. Based on the SWISS Recaro model, the seat has a 55-inch pitch, massage functions and RED entertainment system. Passengers are served hot meals and have a selection of free, first-release movies.
Perhaps most attractive are Virgin America’s fares, which are very low for domestic first class. We offer a superior product for a lower price — our rates top out at $2,500 round-trip. First class has been tremendously successful with a 90 percent load factor. We now offer upgrades on our Web site 24 hours in advance of flights.
GT: What expansion plans or changes do you see for Virgin America?
DC: Naturally, due to the current aviation environment, we are cautious about expansion plans. Our belief is that if we serve our customer, provide a good product and offer the right price, then everything will be okay.
However, I can report that we will not be reducing flights like other U.S. carriers, but adding routes. We are looking at adding Chicago, possibly in late 2008 or early 2009. We are expecting fares and fuels to be balanced by 2010, and then we will follow with more rapid expansion. Ultimately, we are interested in adding Boston, Miami and a good mix of cities that will expand from Los Angeles and San Francisco to the north, south, east and west.
GT: Share with our readers your career in aviation.
DC: Prior to joining the Virgin America team, I was with American Airlines for 22 years. I began in the finance department and held various posts, eventually as the senior vice president of global sales. My tenure with American allowed me to develop my finance, sales and marketing skills and live in Dallas, London, Miami and Argentina.
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