Why an Airline That Travelers Love Is Failing

Virgin America is the equivalent of a TV show that’s a hit with critics but risks being canceled because of failing to attract enough viewers. The San Francisco–based carrier is regularly voted to the top of “best airline” lists. But it is far from the best in the business at making money. On its website, Virgin America proudly displays the long list of travel awards it’s won over the past few years — best in-flight entertainment, best cabin staff, best cabin ambience, best overall passenger experience and so on. In the latest Conde Nast Traveler Readers’ Choice survey, it’s no surprise which carrier was named the top overall airline in the U.S. Yep, it’s the child of British billionaire Richard Branson, five-year-old Virgin America. For the uninitiated, the San Francisco Chronicle offered a portrait of what makes the airline so special: Boarding a Virgin America flight, bathed in 12 alternating shades of mood lighting and awash in globalized dance/trance music, is not unlike rolling into a late-night club, cocktail in hand. Unlike low-cost carriers that fly with single-class seats and service, Virgin America offers first class, premium economy and economy. (MORE: Popularity and Pay: Was Willy Loman Right About Being Well Liked?) Virgin American stands out especially because the industry is dominated with trends pushing for more fees, fewer perks and an overall degrading and deglamorizing of the flying experience. Years ago — O.K., decades ago — it was laughable to compare buses with planes. But nowadays, the concept of a plane being little more than a “bus in the sky” is the industry standard. It’s fairly remarkable than any airline can generate positive feelings among customers in today’s travel scene. But while Virgin America may be well liked, it may not be well suited to compete. Reporting in August, the Chronicle noted that, despite all its rewards and glowing reviews, since 2007, Virgin America has posted a net loss of $671 million and an operating loss of $447 million. More recently, Bloomberg News reported that after large net losses in … Continue reading Why an Airline That Travelers Love Is Failing