U.S. low-cost carrier Virgin America launches its first international route today from Toronto, but the airline is already looking to Vancouver as a possible next stop.
Known for its mood-lighting and high-tech amenities, the carrier today kicks off daily service between Toronto and California’s two busiest airports in Los Angeles and San Francisco.
As the Globe and Mail reports, airline chairman Donald Carty sees Vancouver as the carrier’s next logical Canadian destination. “Vancouver is certainly on our radar screen, though we haven’t decided on timing,” said Carty.
Carty, who is also chairman of Toronto-based Porter Airlines, sees the opportunity to tap into a large community of Canadians working in the entertainment industry in Los Angeles, and the high-tech biz in San Francisco.
Virgin America launched U.S. flights in 2007. Its first venture north of the border has been greeted with fare deals from rival Air Canada, which is promoting fares as low as $187 one-way, before taxes and other charges, between Toronto and San Francisco for weekdays in mid-July. AC has boosted its seat capacity in the Toronto-California market by more than 50% this summer, in advance of Virgin America’s arrival.
But Carty says while Air Canada is undercutting some Virgin America fares, price isn’t the only factor. “Many start-ups have come to the market with the promise to the customer of low prices. That’s great, but the customer wants and expects more. We will be delivering a travel experience, too,” he said.
“Air Canada isn’t a naive carrier. They will compete and won’t give up turf easily. If we see a strong economic recovery, there is probably room for success on routes for both entities,” Carty added.
The new flights will be officially inaugurated on June 29th, with Virgin Group founder Richard Branson and Canadian hip hop artist Drake on hand for the event. Virgin Group has a 25% voting stake in Virgin America.
While some industry observers have been skeptical of Virgin America’s cash-draining expansion strategy of deploying new Airbus A319 and A320 jets, Carty said he believes the carrier will be strong enough to launch an IPO within a couple of years.
Interestingly, when sister airline Virgin Atlantic launched service to London from Toronto in June 2001, the carrier pulled out of that competitive transatlantic market a few months after the 9/11 attacks. Here is a clip of Open Jaw’s Nina Slawek interviewing a very confident Sir Richard Branson at that inaugural party: Open Jaw Outtake
