Virgin America's New Destination

" Twelve car I'm the only industry feeling the pain and that the on meet the airline industry has been hit hard of late urged America low cost airline that launched just a year ago. As a goal to provide low -- high quality service for a long haul point to point. Service between need to metropolitan -- on the east and west coast the company owned by Richard Branson is announcing some news on our show this morning. Joining us now into virgin America CEO David -- and good to see you. Good morning and like them all rates again with a big announcement we've been waiting for that."

" Well we're happy to announce that beginning on February 12 the Boston logo will become the eighth destination in the virgin America network and it's. It's big news. You know this the only city we will announce in 2009. We'll start out with two flight today from Logan. To SFO San Francisco in free flight today Intel yaks."

" So you know let let's walk through here I would I've been reading through some this is of course I had the good. I had a reconnaissance before we announced it here. I'll walk me through what you'll have areas be and why it was Boston so essential. Ice in terms and then they handful of cities that you -- our traveling to live with virgin America."

" Well let's start out with a -- to will be starting out with a 149 dollars one way. To each city that's so de LA and the San Francisco and 999 dollars. In first class we are one way here a one way fare structure so they're no minimum states or any of that stuff. As far as Boston goes you know of course part of it is we are trans con airline would have a product built around now with life TV. Seat back video and those types of things the second thing it's a lot of it has to do with the demographic we're looking for you know we're going to the major urban centers we're going to. Places where people are looking for technology on board we've got on board and we've got like TV and that's really the type of audience we're looking for -- and Boston. "

" All right you know just a couple of days ago you I think we're scrapping plans to you know to pursue a Chicago route. Tell you whine not Chicago and why Boston. "

" Well Chicago Baltimore pretty much neck and neck in terms of the economic analysis. We've been dealing with the city of Chicago with O'Hare airport for about six months trying to get gates. Unfortunately we just ran out of time we've got three airplanes that. We need to put into service by February we ran out of time in Chicago because the situation there is that the legacy airport that legacy airlines excuse me. Control all of the gates there's only one gate to the city of Chicago actually controls at O'Hare. It is currently being used by jetBlue so it became time for us to move on the city of Boston was able to find its gates immediately and that's where we're going."

" Harry is great points there once things you mentioned before is your high tech approach to flying. And and some what you're doing right now four four you know online service. -- little bit about that because that's the big key differentiator you guys."

" It sure -- and you know we've got on board and are not on two of our planes right now we're adding it one airplane. Op per week and by the end of the first quarter around the time we start off -- service will have on board in and -- on all of our aircraft. We also have standard seen clogs so the top apology using your -- or not any funny adapters under each each seat underneath each city. And of course you throw well and the fact that we got pay per view movies we've got live TV it is just a new approach to. Tech offerings on an airplane. You know again these are long flights wanting to keep in mind these are you know six and a half hour flights -- here. It's almost as long ago from Boston to the west coast as it is from Boston -- so these are important features."

" a little bit about the airline business since switched gears for a moment because while oil prices have come off very steadily as well as jet fuel prices have come off pretty aggressively. And the outlook for their group and and just the global airline industry in fact movies that they just cannot the other day and said that the outlook is negative. It's a tough climate. How we handling business and top climate."

" Well I'll tell you I would rather be in this climate -- where we were in the summer you know that if you look at the falloff in fuel prices essentially that's cut about 20% of our operating costs. Between what we're paying in the summer what we're paying now we're seeing nowhere near that in terms of dropout drop off -- revenues so. You know it's kind of future pours him we would rather have a little bit softer economy and much more rational fuel prices than what we had in the summer."

" You know a lot of people suggesting that while airplanes are exceptionally book right now for the holidays that come January 1. That my tail off because -- if it -- difficult economy in any hot you know obviously a recession here. But they're also a lot less planes on the runways and one half in terms of you know availability filling seats."

" Yet it's tough to forecast January until you get into January you know it's one of the tough things about the holiday season as you -- don't get much clarity into what's going on in the new year but I will say. With all the seats that have come out we were pretty bullish on what next year's gonna look like in terms of you know revenue it won't look like 2000 innate in terms of double digit digit improvements in most months what we're looking for a good solid revenue year."

" So when you look I mean in terms of revenue basis -- every year -- 2009 can stack up I mean clearly I realized David and who knows where oil prices are jet fuel prices will be in 2000 kinda thing but his gaffe."

" Yeah I think most analysts are calling for. You know three and 4% unit revenue declines we actually think it may be a little bit better we're looking for flat to you know two or 3% improvements."

" On how like pat encourage. CEO virgin America great having you here today thanks for making me announce that let us congratulations."