Virgin America

Assignment for MGT 5170

Date of Submission: 9/10/2015

Title of Assignment: Virgin America

CERTIFICATION OF AUTHORSHIP: We certify that we are the authors of this paper and that any assistance. We received in its preparation is fully acknowledged and disclosed in the paper. We have also cited any sources from which we used data, ideas or words, either quoted directly or paraphrased. We have fully complied with Huizenga School of Business Academic Honesty Policy. We also certify that this paper was prepared by us specifically for this course.

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Facilitator’s Grade on Assignment:

Facilitator’s Comment(s)

Executive Summary

The company’s vision is to be the leading provider of luxury best in comfort and class at an affordable low price. The issue facing virgin America is it limited routes in key markets. Since 2014, virgin America has been a profitable Organization. The keys to this were slowing expansion and taken delivery of one aircraft a year. Virgin America also went public, which immediately infuse the organization with a capital and reduced debt. The recent reduction in oil prices has also contributed to lower operation cost and increase profitability. Alternatives to increase profitability would be partnerships with other airlines in Legacy markets. This can be done in conjunction with capital from virgin America’s parent group virgin Group. The virgin brand is known for quality and excellent service should be leveraged as much as possible to gain entrance into markets where current major airlines have been reluctant to allow access.

Industry problems

Virgin America entered the U.S. domestic airline market just before the great recession had fully begun to impact U.S. economy. The domestic airline industry outlook was positive for the 2008 year. In 2009, the great recession started to build steam and quickly affected the many economies worldwide. Seemingly overnight many...