At a time when airlines are still cutting back, Virgin America is planning to expand its fleet from 28 to 90 by the year 2016 allowing more airline jobs to be created. According to the announcement made on the 22nd July, the company has ordered 40 new Airbus A320 aircraft which are going to be delivered in groups of 10 per year from 2013 to 2016 with 20 additional aircraft possibly joining the fleet in 2017 and 2018.
The CEO and President of Virgin America, David Cush, and Chief Operating Officer of Airbus, John Leahy both made the announcement at the Farnborough International Airshow of their Memorandum of Understanding (MOU) which stated that Virgin America was growing substantially. Cush stated, “This MOU reflects confidence in our financial performance, business model and unique service. Despite the tough economic climate since our 2007 launch, Virgin America has experienced record growth, strong financial progress and a sweep of the major reader-based travel awards. At a time when most carriers are contracting and shedding jobs, we’re pleased to be growing and bringing our low-fare, innovative service into new markets. The low operating costs, cabin comfort and carbon-efficient design of our all new Airbus fleet will continue to fuel our growth and success in the North American market.”
Virgin America has received many reader awards including “The Best Domestic Airline” from Conde Nast Traveler’s Readers’ Choice Awards and Travel and Leisure’s World’s Best Awards every year to date since its launch. The quality of service and their environmentally conscious “Sharklet” option means that many more travelers will choose Virgin America.
Currently Virgin is also busy increasing the destinations that it operated in. They expect to add 3 or 4 destinations each year starting from next year. Since their launch they have created 1600 new airline jobs, and they intend to double this within the next 3 years. Its base of operations is also being upgraded at San Francisco International Airport. They are now one of 2 anchor tenants in the brand Silver LEED certified Terminal 2 building which cost $383 million. This is due to open in 2011 also providing plenty of new airport jobs to the San Francisco area.
The U.S economy is directly booted by the purchase of new Airbus aircraft, as it spends about 40 percent of its procurement budget on hundreds of U.S suppliers covering more than 40 States. Just in 2009, Airbus spent over $10 billion in the United States. Translating that into jobs, the U.S Department of Commerce figures that Airbus supports about 180 thousand American jobs.
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