Virgin America slows expansion plans and cuts Airbus order by two thirds
Photo Credit: Virgin America is winning accolades, but having trouble finding the profits to match. Los Angeles Times/MCT / Michael Robinson Chavez
Skift Take
Both Virgin and the consumers and experts that keep giving the airlines awards are bemoaning the airlines' challenges, but even with it's troubles Virgin has led other airlines to copy some of its more user-centric designs and products.
Virgin America Inc., the low-fare airline partly owned by Richard Branson, will cut an order for Airbus SAS jets by two-thirds and delay the delivery dates of newer models as it curbs expansion plans.
The carrier will now take delivery of 10 Airbus A320 planes, down from its original order for 30, in 2015 and 2016, according to a statement today. Those 10 aircraft are the last of the original batch, as the first 20 were to be handed over to the Burlingame, California-based airline from 2013 through 2015.
Virgin America also deferred the delivery range for 30 A320neo-model jets to 2020 through 2022 from the original dates of 2016 through 2019. The moves followed last month’s disclosure of a capacity reduction from January through March, the first cut in available seats since the airline started flying in 2007.
“During the summer we started looking at whether it still made sense to grow as fast as we were planning on, given fuel prices and what I’ll say is a modest economi
