Virgin America
virgin america
Analysis & Strategic Plan
strategic management 780-634
Michele K. Masterfano, DBA
LeBow College of Business
Drexel University
Summer 2012
Table of Contents
OVERVIEW 1
Fast Facts 1
ENVIRONMENT 3
Internal Analysis 3
Company Structure 3
Company Culture 3
Operations & Logistics 3
Triple Bottom Line 3
SWOT 3
External Analysis 5
Competitive Environment 5
Summary 8
External SWOT Analysis 9
Summary 13
FINANCIAL 14
FUTURE 15
Potential 15
Expansion 16
Merger 16
Acquisitions 16
IPO 17
Additional Recommendations 17
SUMMATION 18
REFERENCES 19
Virgin America was founded by serial entrepreneur, Sir Richard Branson of England. It is an airline that operates within the United States domestic market and is based out of San Francisco, California. Their mission is “to make flying good again, with brand new planes, attractive fares, top-notch service, and a host of fun, innovative amenities that are reinventing domestic air travel” (virginamerica.com). The first Virgin American flights arrived at San Francisco International Airport (SFO) on August 8, 2007. Virgin America hit some roadblocks before entering the US market. The airline was granted approval by the Department of Transportation on the condition that that it would not be influenced by the foreign ownership. Branson was the brains behind launching Virgin America, but could not get approval to fly unless the airline was controlled by US investors. With that Branson is a 49% minority owner in Virgin America (usatoday.com). The airline industry is highly competitive so entry into the market was not met without opposition from other airlines.
Fast Facts
Virgin America flies non-stop to many destinations in the U.S. from the hub at SFO, including non-stops flights to New York. This route is the second largest direct flight path in the US,
Analysis & Strategic Plan
strategic management 780-634
Michele K. Masterfano, DBA
LeBow College of Business
Drexel University
Summer 2012
Table of Contents
OVERVIEW 1
Fast Facts 1
ENVIRONMENT 3
Internal Analysis 3
Company Structure 3
Company Culture 3
Operations & Logistics 3
Triple Bottom Line 3
SWOT 3
External Analysis 5
Competitive Environment 5
Summary 8
External SWOT Analysis 9
Summary 13
FINANCIAL 14
FUTURE 15
Potential 15
Expansion 16
Merger 16
Acquisitions 16
IPO 17
Additional Recommendations 17
SUMMATION 18
REFERENCES 19
Virgin America was founded by serial entrepreneur, Sir Richard Branson of England. It is an airline that operates within the United States domestic market and is based out of San Francisco, California. Their mission is “to make flying good again, with brand new planes, attractive fares, top-notch service, and a host of fun, innovative amenities that are reinventing domestic air travel” (virginamerica.com). The first Virgin American flights arrived at San Francisco International Airport (SFO) on August 8, 2007. Virgin America hit some roadblocks before entering the US market. The airline was granted approval by the Department of Transportation on the condition that that it would not be influenced by the foreign ownership. Branson was the brains behind launching Virgin America, but could not get approval to fly unless the airline was controlled by US investors. With that Branson is a 49% minority owner in Virgin America (usatoday.com). The airline industry is highly competitive so entry into the market was not met without opposition from other airlines.
Fast Facts
Virgin America flies non-stop to many destinations in the U.S. from the hub at SFO, including non-stops flights to New York. This route is the second largest direct flight path in the US,
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