The Wall Street Journal is reporting on some capital structure and route changes at our hometown airline, Virgin America.
The closely held carrier, which is based in Burlingame, Calif., said late last year that it was ending its breakneck expansion, hoping to shore up its finances by letting its new routes mature. It also has canceled orders for 20 of 30 Airbus jets and deferred delivery dates on another 30 planes.
Mr. Cush said in an interview Friday that Virgin America's investors recently agreed to convert $290 million of the carrier's $800 million of debt into equity that they would own once the company went public and the stock hit certain targets.
In the first quarter, when air-travel demand is seasonally low, Virgin America's loss narrowed to $46 million from $76 million a year earlier and its revenue rose 13% to $301 million. Unit revenue, the amount taken in for each passenger flown a mile, rose by 16.5% from a year earlier, outpacing its larger rivals.
As a regular Virgin customer (America and Atlantic) I can say it's a pretty well run airline and I appreciate their approach of having a bit of personality and trying to inject some fun into what has become a dreary air travel business.