Tuesday, December 18, 2007
The Cost of Virginity
According to Abby Lunardini, "You have incredibly high overhead costs when you start an airline." Which is why Virgin America has lost almost $35 million on their first three months f operation. Their operating revenue was $16.16 million and their costs were $51.16 million. Virgin America has just replaced it's CEO with David Cush, 47, a former American Airlines executive; Cush was senior vice president of global sales at AA. According to one airline analyst. "One reason you bring in a very disciplined and creative executive like Dave Cush is, I think, he understands the challenge of running an airline." Let's hope so.