Opportunity in Flight

" The thought of heading to the airport and then flying home for the holidays tonight make you cringe I -- crazy. I'm doing -- tonight it's going to -- Bulls -- is over I'm going to Newark. Well our next guest is looking to make flying enjoyable again so you don't cringe. He says the current economic environment presents a unique opportunity for the airlines joining me now in a Fox Business. Exclusive from San Francisco with David -- CEO. A virgin America David I was so excited when I heard that you're coming back on the show thank you for being here. Thanks for half mile on a day like this no less. How's business you've just celebrated a couple months ago I believe 'cause I flew on your birthday on look at the airlines birthday. The one year anniversary tell me how business is going."

" What's actually going okay you know we saw a lot of what the retailers on October especially in the middle of the month. With some softness in bookings but. In the last couple of weeks we've seen things rebound and I think some of it is what I would call savers or remorse of people decided. Maybe I'm not going to go home for the holidays as we got closer they decided. You know these are these are lifetime events you miss -- Thanksgiving you never get that Thanksgiving backs of people are people now booking. Both for Thanksgiving and for Christmas okay so would you say that your planes as far as capacities concerned argue full what's going on with the roots. Yeah we're running about 85% for November and the rest of the month is pretty much sold out and Christmas is -- a very strongly also so. You know we're seeing things in line with historical averages historical averages how do you think the economy will let's say going forward because have been so much maneuvering here and movement. How do you think the economy will affect your profit target specifically. Well you know I I mean we've been forecasting. For your profit in 2010 were still optimistic with fuel prices that we can have that but obviously. A lot remains to be seen as far as business traffic in particular. 092009. At that softens and you know maybe that's going to push profits in 2011. But -- remain optimistic on 2010."

" Argue hinging on those lower fuel prices if you look at jet fuel jet fuel has come down dramatically it had been more than five dollars. Around there I guess for a for a gallon of jet fuel it's now weighed down. I'm just interested to know if if everything like a profitability targets for 2010 it all depends on the price of jet fuel."

" Well you know we're trying to lock in some of the recent softness we've seen in crisis you know you if you if you look at the cost of jet fuel. Verses in the peak in July. You know that's cut about 20% of the operating costs off of airline so it gives us a unique opportunity. To go when and hopefully hold some of these games. On that we've seen or some of the drops in the oil markets that we've seen over the last few months we're looking at heading into 2010. 2011 and perhaps even into 2012 with some of softness. Are you hiring. We are hiring as a matter fact you know we're one of the fortunate things about us -- were small. We've got off a very well capitalized planned we're. Fully capitalize on operating and capital basis for the next three years we've got some modest hiring goals but you know I think you can see -- adding several hundred people over the next several months."

" Well you know I've I've flown your airline as I said and on the one year anniversary. You've had your employees walking running T shirts with a happy birthday to virgin and at people -- on the plane have to tell you I think people enjoy the experience of flying virgin America with the pink move lightning in the Wi-Fi I love it but. Tell you little bit more about say for example Chicago you're trying very hard to get into O'Hare which is the here's some of lighting purple pink. This is found that they'll love it but you've got that that opportunity in Chicago but it seems elusive. What is it about -- that's holding you guys up from getting some gates."

" Well first of Wallace not just -- you know I think that's one of our biggest competitive challenges going forward -- barriers to competition and we've seen this in JFK with slots. You know where we are not being able to expand as quickly as we would like at Newark we were told there were no slots basically did not want virgin America there they say there's no room. In Chicago ironically they spent hundreds of millions of dollars of taxpayer money. On a new runway. We actually have slots to go to Chicago now we have been unable to secure gates which are controlled by the legacy airlines so. The city is working hard to get -- gates but right now I'm not tremendously optimistic. It will be able to serve Chicago and all that may swap to find another place to put our service."

" That actually also means that customers are having fewer choices I'm amazed to find say for example that. It's not being made it easier for you I know that they have these legacy leases at least for the bigger airlines where. I don't know 2018 is that correct but these -- airlines that are having real trouble many of them are emerging I'm just surprised. That that they would make it so difficult but I guess competition is well really brutal."

" Yet videos and they cut their capacity fifteen to 20% of -- so there is plenty of room at O'Hare. But 95% of the capacity is controlled by American and united. In 99% of the capacity is controlled by legacy airlines that essentially the low cost carriers have not had an opportunity. To compete in Chicago and it is the people of Chicago the suffer because of us are they scared of you these legacy airlines state that. I I don't think I spent twenty years in American Americans not scared of anyone. I think American is a very tough player united as a top player and very simply did not wanted to additional competition in their lucrative markets."

" All say that they're scared of you I would be cuteness some breed she's on the flight giving people the -- David thank you so much happy Thanksgiving. Thanks -- David -- of virgin America's CEO come back again we love this story. Is a classic Fox Business story the scrappy upstarts getting in their good luck to you."