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Fare War Breaks Out at LAX

Thanks to Virgin America, ticket prices dip as fuel prices soar

By Jim O'Neill, Newser User

Posted Mar 3, 2008 11:25 AM CST

(Newser) – Even as fuel prices soar, Los Angeles airline passengers are enjoying an old-fashioned fare war sparked by newcomer Virgin America, the LA Times reports. Sir Richard Branson's brainchild has drawn United, Alaska, Southwest, and even longtime LAX holdout JetBlue into a feud that's seen one-way fares as low as $44. "We've become a hotbed of competition," says an airport exec.

Virgin America entered the market in August, and dropping prices soon followed. Fares to some destinations have fallen nearly 50%, and experts see the trend continuing: Virgin wants to expand from three routes to 30 in 3 years. The interloper features in-flight chatrooms and mood lighting, but because its appeal to the lucrative business traveler is uncertain, so are its long-term prospects, analysts say.

In this photo released by Virgin America, Virgin Group founder and chairman Sir Richard Branson is welcomed by San Diego Chargers Cheerleaders upon arrival in San Diego, Calif. after the 'first flight'... (Associated Press)

In this photo released by Virgin America, Virgin America president and CEO David Cush, right, is joined by Virgin Group founder and chairman Sir Richard Branson, left, during 'first flight' announcement... (Associated Press)

Virgin Group founder and chairman Sir Richard Branson, right, is joined by Virgin America president and CEO David Cush, left, upon arrival in San Diego, Calif. after the 'first flight' from San Francisco... (Associated Press)

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Fare War Breaks Out at LAX

Thanks to Virgin America, ticket prices dip as fuel prices soar

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Free This Month: Facebook Access, at 30K Feet

Thanks to a Ford/Gogo promotion

Airline Customer Satisfaction Rises (for Once)

Continental, Alaska, JetBlue and Southwest earn top marks

Going...Going...Gone: Airlines Tweet Low Prices

JetBlue, United get in on speedy, hip marketing move

Aging Airlines Can't Catch Up to Younger Rivals

Recent changes haven't helped 'legacy' carriers

After Turbulent Year, Airlines See Smoother 2009

Falling fuel prices and capacity better in line with demand will help profits

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Fare War Breaks Out at LAX

Thanks to Virgin America, ticket prices dip as fuel prices soar

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OTHER STORIES ON OUR RADAR

San Francisco • airline industry • JetBlue • Los Angeles • United Airlines • Seattle • Southwest Airlines • airfare • Alaska Airlines • Virgin America • New Yrok

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Free This Month: Facebook Access, at 30K Feet

Thanks to a Ford/Gogo promotion

Airline Customer Satisfaction Rises (for Once)

Continental, Alaska, JetBlue and Southwest earn top marks

Going...Going...Gone: Airlines Tweet Low Prices

JetBlue, United get in on speedy, hip marketing move

Aging Airlines Can't Catch Up to Younger Rivals

Recent changes haven't helped 'legacy' carriers

After Turbulent Year, Airlines See Smoother 2009

Falling fuel prices and capacity better in line with demand will help profits

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?