Virgin America was consistently rated as one of the top U.S. airlines. It served 20 destinations out of its main hub in San Francisco. Known for its leather seats, cocktail-lounge-style lighting, on board Wi-Fi, in-seat power outlets for electronics devices, full-service meals, and spacious legroom, the key competitive issue the company has been facing is that it is a niche player in a much larger industry where low-cost carriers such as Southwest Airlines and Jet Blue are putting constant pressure on prices and crowding out routes with multiple flights a day. After reviewing the full case, answer these questions?

1. Using Porters generic business-level strategies identify the business-level strategy of the following firms:
   1. Virgin America
2. Provide a brief rationale for your choices.
3. Is Virgin Americas position sustainable?
4. What specific recommendations would you make to ensure Virgin America's profitability?