What are the potential issues for Virgin America following the Alaska Airlines acquisition? Will Virgin America continue to appeal to the same types of customers? Why or why not?
There are far more failures among airline startups than there are successes. In the past few decades, the most notable successes have pursued a low-cost/low-fare model (Southwest, Allegiant, Spirit, Frontier, etc.). This case shows there is room in the market for an airline that doesn't try to beat the competition by offering the lowest price, but by offering the best service and the most appealing amenities. Virgin America is succeeding by doing these things and by targeting the right customer.