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| | |
Attention: | | Justin Dobbie, Legal Branch Chief |
| | Donald E. Field |
| | Linda Cvrkel, Accounting Branch Chief |
| | Heather Clark |
| | |
Re: | | Virgin America Inc. |
| | Amendment No. 2 to the Registration Statement on Form S-1 (File No. 333-197660) |
| | CIK No. 1614436 |
Ladies and Gentlemen:
On September 8, 2014, in connection with the filing of Amendment No. 2 (the “Amendment”) to the Registration Statement on Form S-1 of Virgin America Inc. (the “Company”), which was initially filed with the Securities and Exchange Commission (the “Commission”) on July 28, 2014, we delivered to the staff of the Commission (the “Staff”), on behalf of the Company, a letter (the “Comment Response Letter”) that set forth the Company’s responses to comments received by email on August 22, 2014 from the Staff.
In response to Comment 5 received from the Staff, the Company noted that comparisons of the Company’s PRASM, RASM and CASM with those of other carriers are based on U.S. Department of Transportation data that is publicly available and other data that is disclosed in press releases and/or SEC filings made by each of the 11 other largest U.S. mainline carriers: Alaska Airlines, Allegiant Travel Company, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, Southwest Airlines, Spirit Airlines, United Airlines and U.S. Airways. In connection with this response, the Company provided to the Staff the support for the PRASM, RASM, and CASM comparisons used in the Amendment as a supplement under separate cover. For the Staff’s convenience, the Company has attached the previously delivered support to this letter asAppendix A.
September 18, 2014
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As indicated in the Comment Response Letter, and is common within the industry, the Company has made adjustments to the consolidated RASM and CASM reported to the U.S. Department of Transportation or otherwise made publicly available by each of the 11 largest U.S.-based carriers to make comparing these metrics more meaningful for an investor. While there are a number of factors that can impact the difference in an airline’s RASM in different markets, generally there is a high negative correlation between PRASM and the average length of a passenger’s trip (referred to as passenger-weighted length of haul). The Company has adjusted the consolidated RASM reported by each airline based on each airline’s calculated average passenger-weighted length of haul to facilitate an industry-wide comparison of RASM between airlines that is more meaningful for an investor. Likewise, CASM has a high negative correlation to the average distance each seat is flown (referred to as seat-weighted stage length), and the Company has similarly adjusted industry-wide comparisons of CASM for differences in seat-weighted stage length.
We hope the foregoing is helpful in your review of the Comment Response Letter. Please do not hesitate to contact me by telephone at (650) 463-3060 or by fax to my attention at (650) 463-2600 with any questions or comments regarding this correspondence.
|
Very truly yours, |
|
/s/ Tad J. Freese |
|
Tad J. Freese of LATHAM & WATKINS LLP |
| | |
cc: | | C. David Cush, Virgin America Inc. |
| | Peter D. Hunt, Virgin America Inc. |
| | John J. Varley, Virgin America Inc. |
| | Alan F. Denenberg, Davis Polk & Wardwell LLP |
Appendix A
Consolidated RASM (unadjusted)
| | | | | | | | | | | | | | |
| | IATA Code | | 2013 RASM | | | 2012 RASM | | | Year over Year Change | |
Alaska Airlines | | AS | | | 14.74 | | | | 14.82 | | | | -0.5 | % |
Allegiant Air | | G4 | | | 12.23 | | | | 12.14 | | | | 0.7 | % |
American Airlines | | AA | | | 15.33 | | | | 14.95 | | | | 2.5 | % |
Delta Air Lines | | DL | | | 18.48 | | | | 18.25 | | | | 1.2 | % |
Frontier Airlines | | F9 | | | 12.41 | | | | 12.04 | | | | 3.1 | % |
Hawaiian Airlines | | HA | | | 12.84 | | | | 13.36 | | | | -3.9 | % |
JetBlue Airways | | B6 | | | 12.71 | | | | 12.43 | | | | 2.3 | % |
Southwest Airlines | | WN | | | 13.58 | | | | 13.34 | | | | 1.8 | % |
Spirit Airlines | | NK | | | 11.94 | | | | 11.62 | | | | 2.8 | % |
United Airlines | | UA | | | 15.60 | | | | 14.93 | | | | 4.5 | % |
US Airways | | US | | | 15.95 | | | | 15.57 | | | | 2.4 | % |
Virgin America | | VX | | | 11.64 | | | | 10.65 | | | | 9.3 | % |
Ranked by Year over Year Change
| | | | | | |
1 | | Virgin America | | | 9.3 | % |
2 | | United Airlines | | | 4.5 | % |
3 | | Frontier Airlines | | | 3.1 | % |
4 | | Spirit Airlines | | | 2.8 | % |
5 | | American Airlines | | | 2.5 | % |
6 | | US Airways | | | 2.4 | % |
7 | | JetBlue Airways | | | 2.3 | % |
8 | | Southwest Airlines | | | 1.8 | % |
9 | | Delta Air Lines | | | 1.2 | % |
10 | | Allegiant Air | | | 0.7 | % |
11 | | Alaska Airlines | | | -0.5 | % |
12 | | Hawaiian Airlines | | | -3.9 | % |
Sources:
| • | | RASM for all carriers except Virgin America, Frontier Airlines and Delta Air Lines: 2013 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. |
| • | | Total Operating Revenue for Delta Air Lines (used to calculate RASM): Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. |
| • | | ASMs for Delta Air Lines (used to calculate RASM): Airline Operational Cost Analysis Report on U.S. DOT Form 41, as filed with the U.S. Department of Transportation. |
| • | | RASM for Virgin America: Amendment No. 2 to Form S-1 Registration Statement (333-197660), as filed with the Securities and Exchange Commission. |
| • | | Total Operating Revenue and ASMs for Frontier Airlines (used to calculate RASM): Airline Operational Cost Analysis Report on U.S. DOT Form 41, as filed with the U.S. Department of Transportation. |
September 18, 2014
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Length of Haul Adjusted RASM Data
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Adjusted length of haul: | | | 1,000 | | | | | | | | | | | | |
| | | | | | |
| | | | 2013 | | | | | | | | | | | | |
| | | | RASM | | | Length of Haul | | | S-L Adj. RASM | | | 2013 S-L Adj. RASM Rank | |
Alaska Airlines | | AS | | | 13.74 ¢ | | | | 1,326 | | | | 15.82 ¢ | | | | 1 | | | Delta Air Lines | | | 18.97 ¢ | | | | | |
Allegiant Air | | G4 | | | 10.61 ¢ | | | | 985 | | | | 10.53 ¢ | | | | 2 | | | United Airlines | | | 17.60 ¢ | | | | | |
American Airlines | | AA | | | 13.43 ¢ | | | | 1,476 | | | | 16.32 ¢ | | | | 3 | | | Hawaiian Airlines | | | 16.57 ¢ | | | | | |
Delta Air Lines | | DL | | | 15.96 ¢ | | | | 1,413 | | | | 18.97 ¢ | | | | 4 | | | American Airlines | | | 16.32 ¢ | | | | | |
Frontier Airlines | | F9 | | | 12.25 ¢ | | | | 1,000 | | | | 12.25 ¢ | | | | 5 | | | Alaska Airlines | | | 15.82 ¢ | | | | | |
Hawaiian Airlines | | HA | | | 14.13 ¢ | | | | 1,377 | | | | 16.57 ¢ | | | | 6 | | | US Airways | | | 15.17 ¢ | | | | | |
JetBlue Airways | | B6 | | | 12.00 ¢ | | | | 1,176 | | | | 13.02 ¢ | | | | 7 | | | Virgin America | | | 14.30 ¢ | | | | | |
Southwest Airlines | | WN | | | 13.64 ¢ | | | | 966 | | | | 13.41 ¢ | | | | 8 | | | Southwest Airlines | | | 13.41 ¢ | | | | | |
Spirit Airlines | | NK | | | 11.99 ¢ | | | | 967 | | | | 11.78 ¢ | | | | 9 | | | JetBlue Airways | | | 13.02 ¢ | | | | | |
United Airlines | | UA | | | 12.59 ¢ | | | | 1,955 | | | | 17.60 ¢ | | | | 10 | | | Frontier Airlines | | | 12.25 ¢ | | | | | |
US Airways | | US | | | 14.11 ¢ | | | | 1,156 | | | | 15.17 ¢ | | | | 11 | | | Spirit Airlines | | | 11.78 ¢ | | | | | |
Virgin America | | VX | | | 11.49 ¢ | | | | 1,551 | | | | 14.30 ¢ | | | | 12 | | | Allegiant Air | | | 10.53 ¢ | | | | | |
| | | | | | | |
| | | | | | | | | | | | | Unweighted Averages | | | | | | |
| | | | | | | | | | | | | | | | | | | | Legacy carriers | | | 17.02 ¢ | | | | 19 | % |
| | | | | | | | | | | | | | | | | | | | LCC | | | 12.20 ¢ | | | | -15 | % |
| | | | | |
Weighted Averages | | | | | | | | | Weighted Averages | | | | | | |
Legacy | | | | | 14.06 ¢ | | | | 1,527 | | | | 17.37 ¢ | | | | | | | Legacy carriers | | | 17.37 ¢ | | | | 21 | % |
LCC | | | | | 13.04 ¢ | | | | 1,007 | | | | 13.09 ¢ | | | | | | | LCC | | | 13.09 ¢ | | | | -9 | % |
Legacy carriers include American Airlines, Delta Air Lines, United Airlines and US Airways.
LCCs include Allegiant Air, Frontier Airlines, JetBlue Airways, Southwest Airlines and Spirit Airlines.
Length of haul adjusted RASM is calculated by multiplying RASM by a quotient, the numerator of which is the square root of the carrier’s length of haul and the denominator of which is the square root of the common length of haul (1,000 miles).
Notes on RASM
| • | | Source: Airline Operational Cost Analysis Report on U.S. DOT Form 41, as filed with the U.S. Department of Transportation. |
| • | | Data for Southwest Airlines include the combined results for Southwest Airlines and AirTran. |
Notes on Length of Haul
| • | | For RASM comparisons, length of haul being utilized is a passenger-weighted distance, or the average of the individual distances flown by the carrier’s passengers. |
| • | | All carriers except for Virgin America, Frontier Airlines and Delta Air Lines: 2013 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. |
| • | | Virgin America: Amendment No. 2 to Form S-1 Registration Statement (333-197660), as filed with the Securities and Exchange Commission. |
| • | | Frontier Airlines: Airline Operational Cost Analysis Report on U.S. DOT Form 41, as filed with the U.S. Department of Transportation. |
| • | | Delta Air Lines: U.S. Department of Transportation Airline Origin and Destination Survey (DB1B). |
| • | | Data for Frontier Airlines include mainline and regional data. Data for all other carriers include only mainline data. |
| • | | Data for all carriers represent total system length of haul, which includes international flights for carriers with international operations. |
September 18, 2014
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Stage-Length Adjusted CASM Data
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2013 | | | | | | | | | | | | |
| | | | CASM | | | Stage Length | | | Int. Exp. per ASM | | | S-L Adj. CASM | | | 2013 S-L Adj. CASM Rank | |
Alaska Airlines | | AS | | | 11.69 ¢ | | | | 1,181 | | | | 0.16 ¢ | | | | 12.86 ¢ | | | | 1 | | | Spirit Airlines | | | 9.81 ¢ | | | | | |
Allegiant Air | | G4 | | | 10.33 ¢ | | | | 975 | | | | 0.04 ¢ | | | | 10.24 ¢ | | | | 2 | | | Allegiant Air | | | 10.24 ¢ | | | | | |
American Airlines | | AA | | | 13.71 ¢ | | | | 1,443 | | | | 0.57 ¢ | | | | 17.04 ¢ | | | | 3 | | | Southwest Airlines | | | 10.73 ¢ | | | | | |
Delta Air Lines | | DL | | | 15.16 ¢ | | | | 1,398 | | | | 0.60 ¢ | | | | 18.52 ¢ | | | | 4 | | | Frontier Airlines | | | 11.80 ¢ | | | | | |
Frontier Airlines | | F9 | | | 12.25 ¢ | | | | 916 | | | | 0.08 ¢ | | | | 11.80 ¢ | | | | 5 | | | Alaska Airlines | | | 12.86 ¢ | | | | | |
Hawaiian Airlines | | HA | | | 12.17 ¢ | | | | 1,374 | | | | 0.38 ¢ | | | | 14.65 ¢ | | | | 6 | | | JetBlue Airways | | | 12.87 ¢ | | | | | |
JetBlue Airways | | B6 | | | 11.76 ¢ | | | | 1,152 | | | | 0.25 ¢ | | | | 12.87 ¢ | | | | 7 | | | Virgin America | | | 13.32 ¢ | | | | | |
Southwest Airlines | | WN | | | 12.66 ¢ | | | | 711 | | | | 0.06 ¢ | | | | 10.73 ¢ | | | | 8 | | | Hawaiian Airlines | | | 14.65 ¢ | | | | | |
Spirit Airlines | | NK | | | 10.01 ¢ | | | | 960 | | | | 0.00 ¢ | | | | 09.81 ¢ | | | | 9 | | | US Airways | | | 15.25 ¢ | | | | | |
United Airlines | | UA | | | 13.72 ¢ | | | | 1,934 | | | | 0.07 ¢ | | | | 19.14 ¢ | | | | 10 | | | American Airlines | | | 17.04 ¢ | | | | | |
US Airways | | US | | | 13.75 ¢ | | | | 1,122 | | | | 0.68 ¢ | | | | 15.25 ¢ | | | | 11 | | | Delta Air Lines | | | 18.52 ¢ | | | | | |
Virgin America | | VX | | | 10.91 ¢ | | | | 1,490 | | | | 0.00 ¢ | | | | 13.32 ¢ | | | | 12 | | | United Airlines | | | 19.14 ¢ | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | Unweighted Averages | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | Legacy | | | 17.49 ¢ | | | | 31 | % |
| | | | | | | | | | | | | | | | | | | | | | | | LCC | | | 11.09 ¢ | | | | -17 | % |
| | | | | | | | |
Weighted Averages | | | | | | | | | | | | | | | | Weighted Averages | | | | | | |
Legacy | | | | | 14.16 ¢ | | | | 1,501 | | | | 0.45 | | | | 17.80 ¢ | | | | | | | Legacy | | | 17.80 ¢ | | | | 34 | % |
LCC | | | | | 12.21 ¢ | | | | 807 | | | | 0.09 | | | | 11.06 ¢ | | | | | | | LCC | | | 11.06 ¢ | | | | -17 | % |
Legacy carriers include American Airlines, Delta Air Lines, United Airlines and US Airways.
LCCs include Allegiant Air, Frontier Airlines, JetBlue Airways, Southwest Airlines and Spirit Airlines.
Stage-length adjusted CASM is calculated by multiplying CASM by a quotient, the numerator of which is the square root of the carrier’s stage length and the denominator of which is the square root of the common stage length (1,000 miles).
Because Virgin America’s CASM includes aircraft rent, interest expense per ASM for interest associated with aircraft has been added to the stage-length adjusted CASM of each other carrier where appropriate.
Notes on CASM
| • | | All CASM data: Airline Operational Cost Analysis Report on U.S. DOT Form 41, as filed with the U.S. Department of Transportation. |
| • | | Interest expense per ASM: Frontier Airlines: 2012 Annual Report on Form 10-K of Republic Airways (previous parent), as filed with the Securities and Exchange Commission, adjusted to date based on number of aircraft. |
| • | | Interest expense per ASM: All other carriers: 2013 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. |
| • | | Data for Southwest Airlines include the combined results for Southwest Airlines and AirTran. |
Notes on Stage Length
| • | | For CASM comparisons, stage length being utilized is a seat-weighted distance, or the average of the distances flown by each seat divided by total seats flown. |
| • | | Source: Airline Operational Cost Analysis Report on U.S. DOT Form 41, as filed with the U.S. Department of Transportation. |
| • | | Data for all carriers represent total system mainline stage length, which includes international flights for carriers with international operations. |
| • | | Data for Southwest Airlines includes the combined results for Southwest Airlines and AirTran for 2013. |
Q4 2013 PRASM Comparisons
Data for all airlines other than Virgin America sourced from U.S. Department of Transportation Airline Origin and Destination Survey (DB1B).
Comparison with Legacy Carriers and LCCs
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | Other Carrier Data | | | Virgin America Data | | | Virgin America / Industry | |
Routes | | Available Seat Miles (ASM) | | | Passenger Revenue (PR) | | | Passengers (Pax) | | | Revenue Passenger Miles (RPM) | | | Load Factor (RPM/ASM) | | | Fare (TR/Pax) | | | PRASM (PR/ASM) | | | Load Factor (RPM/ASM) | | | Fare (TR/Pax) | | | PRASM (PR/ASM) | | | Load Factor | | | Fare | | | PRASM | |
BOSLAX | | | 2,959,434 | | | | 22,646,632 | | | | 974 | | | | 2,542,174 | | | | 86 | % | | $ | 233 | | | $ | 0.0765 | | | | 84 | % | | $ | 298 | | | $ | 0.0953 | | | | 97 | % | | | 128 | % | | | 125 | % |
BOSSFO | | | 3,940,015 | | | | 34,884,220 | | | | 1,289 | | | | 3,485,698 | | | | 88 | % | | $ | 271 | | | $ | 0.0885 | | | | 87 | % | | $ | 313 | | | $ | 0.1011 | | | | 99 | % | | | 116 | % | | | 114 | % |
IADLAX | | | 3,864,975 | | | | 33,516,934 | | | | 1,398 | | | | 3,199,041 | | | | 83 | % | | $ | 240 | | | $ | 0.0867 | | | | 77 | % | | $ | 259 | | | $ | 0.0873 | | | | 93 | % | | | 108 | % | | | 101 | % |
IADSFO | | | 3,488,592 | | | | 32,233,780 | | | | 1,235 | | | | 2,987,639 | | | | 86 | % | | $ | 261 | | | $ | 0.0924 | | | | 76 | % | | $ | 284 | | | $ | 0.0896 | | | | 89 | % | | | 109 | % | | | 97 | % |
DCASFO | | | 306,479 | | | | 3,068,653 | | | | 112 | | | | 274,413 | | | | 90 | % | | $ | 273 | | | $ | 0.1001 | | | | 75 | % | | $ | 321 | | | $ | 0.0988 | | | | 84 | % | | | 118 | % | | | 99 | % |
JFKLAS | | | 3,565,337 | | | | 28,631,502 | | | | 1,264 | | | | 2,840,709 | | | | 80 | % | | $ | 227 | | | $ | 0.0803 | | | | 77 | % | | $ | 236 | | | $ | 0.0809 | | | | 97 | % | | | 104 | % | | | 101 | % |
JFKLAX | | | 10,658,756 | | | | 92,137,518 | | | | 3,691 | | | | 9,134,021 | | | | 86 | % | | $ | 250 | | | $ | 0.0864 | | | | 85 | % | | $ | 307 | | | $ | 0.1059 | | | | 100 | % | | | 123 | % | | | 123 | % |
JFKSFO | | | 7,991,558 | | | | 70,168,807 | | | | 2,631 | | | | 6,803,562 | | | | 85 | % | | $ | 267 | | | $ | 0.0878 | | | | 88 | % | | $ | 294 | | | $ | 0.0997 | | | | 103 | % | | | 110 | % | | | 114 | % |
EWRLAX | | | 4,624,149 | | | | 39,129,929 | | | | 1,564 | | | | 3,838,829 | | | | 83 | % | | $ | 250 | | | $ | 0.0846 | | | | 74 | % | | $ | 291 | | | $ | 0.0883 | | | | 90 | % | | | 116 | % | | | 104 | % |
EWRSFO | | | 5,284,005 | | | | 45,460,992 | | | | 1,684 | | | | 4,318,737 | | | | 82 | % | | $ | 270 | | | $ | 0.0860 | | | | 70 | % | | $ | 284 | | | $ | 0.0772 | | | | 85 | % | | | 105 | % | | | 90 | % |
LAXPHL | | | 2,392,586 | | | | 19,089,970 | | | | 866 | | | | 2,078,711 | | | | 87 | % | | $ | 220 | | | $ | 0.0798 | | | | 67 | % | | $ | 252 | | | $ | 0.0704 | | | | 77 | % | | | 114 | % | | | 88 | % |
PHLSFO | | | 2,790,473 | | | | 22,466,964 | | | | 959 | | | | 2,416,391 | | | | 87 | % | | $ | 234 | | | $ | 0.0805 | | | | 78 | % | | $ | 272 | | | $ | 0.0839 | | | | 90 | % | | | 116 | % | | | 104 | % |
DFWLAX | | | 3,911,276 | | | | 41,615,360 | | | | 2,721 | | | | 3,360,945 | | | | 86 | % | | $ | 153 | | | $ | 0.1064 | | | | 78 | % | | $ | 183 | | | $ | 0.1153 | | | | 91 | % | | | 120 | % | | | 108 | % |
DFWSFO | | | 2,880,535 | | | | 27,612,402 | | | | 1,644 | | | | 2,406,475 | | | | 84 | % | | $ | 168 | | | $ | 0.0959 | | | | 74 | % | | $ | 193 | | | $ | 0.0977 | | | | 89 | % | | | 115 | % | | | 102 | % |
AUSSFO | | | 862,664 | | | | 9,275,137 | | | | 489 | | | | 736,052 | | | | 85 | % | | $ | 190 | | | $ | 0.1075 | | | | 77 | % | | $ | 174 | | | $ | 0.0900 | | | | 91 | % | | | 92 | % | | | 84 | % |
LAXORD | | | 5,947,266 | | | | 54,408,713 | | | | 3,017 | | | | 5,265,137 | | | | 89 | % | | $ | 180 | | | $ | 0.0915 | | | | 79 | % | | $ | 208 | | | $ | 0.0938 | | | | 89 | % | | | 115 | % | | | 103 | % |
ORDSFO | | | 6,027,356 | | | | 55,205,090 | | | | 2,857 | | | | 5,273,874 | | | | 87 | % | | $ | 193 | | | $ | 0.0916 | | | | 73 | % | | $ | 210 | | | $ | 0.0833 | | | | 84 | % | | | 109 | % | | | 91 | % |
FLLLAX | | | 973,220 | | | | 6,319,378 | | | | 372 | | | | 870,230 | | | | 89 | % | | $ | 170 | | | $ | 0.0649 | | | | 85 | % | | $ | 248 | | | $ | 0.0903 | | | | 95 | % | | | 146 | % | | | 139 | % |
FLLSFO | | | 995,705 | | | | 6,614,870 | | | | 322 | | | | 830,704 | | | | 83 | % | | $ | 206 | | | $ | 0.0664 | | | | 82 | % | | $ | 264 | | | $ | 0.0838 | | | | 98 | % | | | 128 | % | | | 126 | % |
LAXMCO | | | 1,853,588 | | | | 16,380,409 | | | | 723 | | | | 1,602,116 | | | | 86 | % | | $ | 227 | | | $ | 0.0884 | | | | 88 | % | | $ | 218 | | | $ | 0.0866 | | | | 102 | % | | | 96 | % | | | 98 | % |
LAXSJC | | | 677,951 | | | | 14,050,079 | | | | 1,609 | | | | 495,434 | | | | 73 | % | | $ | 87 | | | $ | 0.2072 | | | | 52 | % | | $ | 82 | | | $ | 0.1370 | | | | 71 | % | | | 93 | % | | | 66 | % |
LAXSFO | | | 1,731,203 | | | | 34,326,991 | | | | 3,822 | | | | 1,288,016 | | | | 74 | % | | $ | 90 | | | $ | 0.1983 | | | | 80 | % | | $ | 100 | | | $ | 0.2372 | | | | 107 | % | | | 111 | % | | | 120 | % |
LASSFO | | | 895,432 | | | | 16,748,902 | | | | 1,683 | | | | 696,665 | | | | 78 | % | | $ | 100 | | | $ | 0.1870 | | | | 75 | % | | $ | 119 | | | $ | 0.2141 | | | | 96 | % | | | 119 | % | | | 114 | % |
LASLAX | | | 976,202 | | | | 22,923,506 | | | | 3,028 | | | | 714,534 | | | | 73 | % | | $ | 76 | | | $ | 0.2348 | | | | 63 | % | | $ | 87 | | | $ | 0.2293 | | | | 85 | % | | | 114 | % | | | 98 | % |
PSPSFO | | | 194,931 | | | | 4,085,676 | | | | 389 | | | | 163,670 | | | | 84 | % | | $ | 105 | | | $ | 0.2096 | | | | 61 | % | | $ | 137 | | | $ | 0.1965 | | | | 72 | % | | | 130 | % | | | 94 | % |
SANSFO | | | 954,351 | | | | 16,288,663 | | | | 1,620 | | | | 723,985 | | | | 76 | % | | $ | 101 | | | $ | 0.1707 | | | | 70 | % | | $ | 108 | | | $ | 0.1682 | | | | 92 | % | | | 107 | % | | | 99 | % |
SEASFO | | | 1,438,231 | | | | 21,945,492 | | | | 1,830 | | | | 1,242,630 | | | | 86 | % | | $ | 120 | | | $ | 0.1526 | | | | 76 | % | | $ | 124 | | | $ | 0.1396 | | | | 88 | % | | | 103 | % | | | 91 | % |
LAXSEA | | | 2,133,188 | | | | 24,287,506 | | | | 1,917 | | | | 1,828,958 | | | | 86 | % | | $ | 127 | | | $ | 0.1139 | | | | 74 | % | | $ | 131 | | | $ | 0.1011 | | | | 86 | % | | | 104 | % | | | 89 | % |
PDXSFO | | | 891,215 | | | | 12,629,513 | | | | 1,281 | | | | 704,277 | | | | 79 | % | | $ | 99 | | | $ | 0.1417 | | | | 66 | % | | $ | 95 | | | $ | 0.1130 | | | | 83 | % | | | 96 | % | | | 80 | % |
September 18, 2014
Page 7
![LOGO](https://capedge.com/proxy/CORRESP/0001193125-14-346052/g761206corresp02.jpg)
Comparison with LCCs
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | Other Carrier Data | | | Virgin America Data | | | Virgin America / Industry | |
Routes | | Available Seat Miles (ASM) | | | Passenger Revenue (PR) | | | Passengers (Pax) | | | Revenue Passenger Miles (RPM) | | | Load Factor (RPM/ASM) | | | Fare (TR/Pax) | | | PRASM (PR/ASM) | | | Load Factor (RPM/ASM) | | | Fare (TR/Pax) | | | PRASM (PR/ASM) | | | Load Factor | | | Fare | | | PRASM | |
BOSLAX | | | 1,091,580 | | | | 7,533,839 | | | | 346 | | | | 902,759 | | | | 83 | % | | $ | 218 | | | $ | 0.0690 | | | | 84 | % | | $ | 298 | | | $ | 0.0953 | | | | 101 | % | | | 137 | % | | | 138 | % |
BOSSFO | | | 1,177,101 | | | | 8,820,332 | | | | 375 | | | | 1,012,751 | | | | 86 | % | | $ | 235 | | | $ | 0.0749 | | | | 87 | % | | $ | 313 | | | $ | 0.1011 | | | | 101 | % | | | 133 | % | | | 135 | % |
DFWLAX | | | 240,177 | | | | 1,377,903 | | | | 162 | | | | 200,177 | | | | 83 | % | | $ | 85 | | | $ | 0.0574 | | | | 78 | % | | $ | 183 | | | $ | 0.1153 | | | | 93 | % | | | 215 | % | | | 201 | % |
AUSSFO | | | 227,299 | | | | 1,792,415 | | | | 114 | | | | 171,545 | | | | 75 | % | | $ | 157 | | | $ | 0.0789 | | | | 77 | % | | $ | 174 | | | $ | 0.0900 | | �� | | 103 | % | | | 111 | % | | | 114 | % |
FLLLAX | | | 973,220 | | | | 6,319,378 | | | | 372 | | | | 870,230 | | | | 89 | % | | $ | 170 | | | $ | 0.0649 | | | | 85 | % | | $ | 248 | | | $ | 0.0903 | | | | 95 | % | | | 146 | % | | | 139 | % |
FLLSFO | | | 727,695 | | | | 4,694,774 | | | | 233 | | | | 601,731 | | | | 83 | % | | $ | 202 | | | $ | 0.0645 | | | | 82 | % | | $ | 264 | | | $ | 0.0838 | | | | 99 | % | | | 131 | % | | | 130 | % |
JFKLAS | | | 1,111,537 | | | | 8,499,139 | | | | 413 | | | | 927,524 | | | | 83 | % | | $ | 206 | | | $ | 0.0765 | | | | 77 | % | | $ | 236 | | | $ | 0.0809 | | | | 93 | % | | | 114 | % | | | 106 | % |
JFKLAX | | | 1,831,602 | | | | 13,457,263 | | | | 627 | | | | 1,552,599 | | | | 85 | % | | $ | 215 | | | $ | 0.0735 | | | | 85 | % | | $ | 307 | | | $ | 0.1059 | | | | 101 | % | | | 143 | % | | | 144 | % |
JFKSFO | | | 1,076,880 | | | | 7,765,155 | | | | 364 | | | | 940,518 | | | | 87 | % | | $ | 214 | | | $ | 0.0721 | | | | 88 | % | | $ | 294 | | | $ | 0.0997 | | | | 100 | % | | | 138 | % | | | 138 | % |
LASLAX | | | 445,167 | | | | 9,019,105 | | | | 1,329 | | | | 313,630 | | | | 70 | % | | $ | 68 | | | $ | 0.2026 | | | | 63 | % | | $ | 87 | | | $ | 0.2293 | | | | 89 | % | | | 127 | % | | | 113 | % |
LASSFO | | | 362,742 | | | | 6,149,475 | | | | 676 | | | | 279,731 | | | | 77 | % | | $ | 91 | | | $ | 0.1695 | | | | 75 | % | | $ | 119 | | | $ | 0.2141 | | | | 97 | % | | | 130 | % | | | 126 | % |
LAXORD | | | 350,529 | | | | 2,040,959 | | | | 175 | | | | 304,531 | | | | 87 | % | | $ | 117 | | | $ | 0.0582 | | | | 79 | % | | $ | 208 | | | $ | 0.0938 | | | | 91 | % | | | 177 | % | | | 161 | % |
LAXSFO | | | 428,140 | | | | 7,569,593 | | | | 875 | | | | 294,910 | | | | 69 | % | | $ | 86 | | | $ | 0.1768 | | | | 80 | % | | $ | 100 | | | $ | 0.2372 | | | | 116 | % | | | 116 | % | | | 134 | % |
LAXSJC | | | 390,398 | | | | 7,901,093 | | | | 859 | | | | 264,515 | | | | 68 | % | | $ | 92 | | | $ | 0.2024 | | | | 52 | % | | $ | 82 | | | $ | 0.1370 | | | | 76 | % | | | 89 | % | | | 68 | % |
SANSFO | | | 442,930 | | | | 6,799,032 | | | | 690 | | | | 308,527 | | | | 70 | % | | $ | 99 | | | $ | 0.1535 | | | | 70 | % | | $ | 108 | | | $ | 0.1682 | | | | 100 | % | | | 109 | % | | | 110 | % |
September 18, 2014
Page 8
![LOGO](https://capedge.com/proxy/CORRESP/0001193125-14-346052/g761206corresp02.jpg)
Comparison with Legacy Carriers
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | Other Carrier Data | | | Virgin America Data | | | Virgin America / Industry | |
Routes | | Available Seat Miles (ASM) | | | Passenger Revenue (PR) | | | Passengers (Pax) | | | Revenue Passenger Miles (RPM) | | | Load Factor (RPM/ASM) | | | Fare (TR/Pax) | | | PRASM (PR/ASM) | | | Load Factor (RPM/ASM) | | | Fare (TR/Pax) | | | PRASM (PR/ASM) | | | Load Factor | | | Fare | | | PRASM | |
BOSLAX | | | 1,867,853 | | | | 15,112,792 | | | | 628 | | | | 1,639,415 | | | | 88 | % | | $ | 241 | | | $ | 0.0809 | | | | 84 | % | | $ | 298 | | | $ | 0.0953 | | | | 95 | % | | | 124 | % | | | 118 | % |
BOSSFO | | | 2,762,914 | | | | 26,063,888 | | | | 915 | | | | 2,472,948 | | | | 90 | % | | $ | 285 | | | $ | 0.0943 | | | | 87 | % | | $ | 313 | | | $ | 0.1011 | | | | 97 | % | | | 110 | % | | | 107 | % |
IADLAX | | | 3,864,975 | | | | 33,516,934 | | | | 1,398 | | | | 3,199,041 | | | | 83 | % | | $ | 240 | | | $ | 0.0867 | | | | 77 | % | | $ | 259 | | | $ | 0.0873 | | | | 93 | % | | | 108 | % | | | 101 | % |
IADSFO | | | 3,488,592 | | | | 32,233,780 | | | | 1,235 | | | | 2,987,639 | | | | 86 | % | | $ | 261 | | | $ | 0.0924 | | | | 76 | % | | $ | 284 | | | $ | 0.0896 | | | | 89 | % | | | 109 | % | | | 97 | % |
DCASFO | | | 306,479 | | | | 3,068,653 | | | | 112 | | | | 274,413 | | | | 90 | % | | $ | 273 | | | $ | 0.1001 | | | | 75 | % | | $ | 321 | | | $ | 0.0988 | | | | 84 | % | | | 118 | % | | | 99 | % |
JFKLAS | | | 2,453,800 | | | | 20,132,362 | | | | 851 | | | | 1,913,185 | | | | 78 | % | | $ | 237 | | | $ | 0.0820 | | | | 77 | % | | $ | 236 | | | $ | 0.0809 | | | | 99 | % | | | 100 | % | | | 99 | % |
JFKLAX | | | 8,827,154 | | | | 78,680,255 | | | | 3,063 | | | | 7,581,421 | | | | 86 | % | | $ | 257 | | | $ | 0.0891 | | | | 85 | % | | $ | 307 | | | $ | 0.1059 | | | | 99 | % | | | 119 | % | | | 119 | % |
JFKSFO | | | 6,914,677 | | | | 62,403,651 | | | | 2,267 | | | | 5,863,044 | | | | 85 | % | | $ | 275 | | | $ | 0.0902 | | | | 88 | % | | $ | 294 | | | $ | 0.0997 | | | | 103 | % | | | 107 | % | | | 111 | % |
EWRLAX | | | 4,624,149 | | | | 39,129,929 | | | | 1,564 | | | | 3,838,829 | | | | 83 | % | | $ | 250 | | | $ | 0.0846 | | | | 74 | % | | $ | 291 | | | $ | 0.0883 | | | | 90 | % | | | 116 | % | | | 104 | % |
EWRSFO | | | 5,284,005 | | | | 45,460,992 | | | | 1,684 | | | | 4,318,737 | | | | 82 | % | | $ | 270 | | | $ | 0.0860 | | | | 70 | % | | $ | 284 | | | $ | 0.0772 | | | | 85 | % | | | 105 | % | | | 90 | % |
LAXPHL | | | 2,392,586 | | | | 19,089,970 | | | | 866 | | | | 2,078,711 | | | | 87 | % | | $ | 220 | | | $ | 0.0798 | | | | 67 | % | | $ | 252 | | | $ | 0.0704 | | | | 77 | % | | | 114 | % | | | 88 | % |
PHLSFO | | | 2,790,473 | | | | 22,466,964 | | | | 959 | | | | 2,416,391 | | | | 87 | % | | $ | 234 | | | $ | 0.0805 | | | | 78 | % | | $ | 272 | | | $ | 0.0839 | | | | 90 | % | | | 116 | % | | | 104 | % |
DFWLAX | | | 3,671,100 | | | | 40,237,457 | | | | 2,559 | | | | 3,160,768 | | | | 86 | % | | $ | 157 | | | $ | 0.1096 | | | | 78 | % | | $ | 183 | | | $ | 0.1153 | | | | 90 | % | | | 116 | % | | | 105 | % |
DFWSFO | | | 2,880,535 | | | | 27,612,402 | | | | 1,644 | | | | 2,406,475 | | | | 84 | % | | $ | 168 | | | $ | 0.0959 | | | | 74 | % | | $ | 193 | | | $ | 0.0977 | | | | 89 | % | | | 115 | % | | | 102 | % |
AUSSFO | | | 635,365 | | | | 7,482,722 | | | | 375 | | | | 564,508 | | | | 89 | % | | $ | 199 | | | $ | 0.1178 | | | | 77 | % | | $ | 174 | | | $ | 0.0900 | | | | 87 | % | | | 87 | % | | | 76 | % |
LAXORD | | | 5,596,737 | | | | 52,367,754 | | | | 2,843 | | | | 4,960,606 | | | | 89 | % | | $ | 184 | | | $ | 0.0936 | | | | 79 | % | | $ | 208 | | | $ | 0.0938 | | | | 89 | % | | | 113 | % | | | 100 | % |
ORDSFO | | | 6,027,356 | | | | 55,205,090 | | | | 2,857 | | | | 5,273,874 | | | | 87 | % | | $ | 193 | | | $ | 0.0916 | | | | 73 | % | | $ | 210 | | | $ | 0.0833 | | | | 84 | % | | | 109 | % | | | 91 | % |
FLLSFO | | | 268,010 | | | | 1,920,096 | | | | 89 | | | | 228,973 | | | | 85 | % | | $ | 217 | | | $ | 0.0716 | | | | 82 | % | | $ | 264 | | | $ | 0.0838 | | | | 96 | % | | | 122 | % | | | 117 | % |
LAXMCO | | | 1,853,588 | | | | 16,380,409 | | | | 723 | | | | 1,602,116 | | | | 86 | % | | $ | 227 | | | $ | 0.0884 | | | | 88 | % | | $ | 218 | | | $ | 0.0866 | | | | 102 | % | | | 96 | % | | | 98 | % |
LAXSJC | | | 287,553 | | | | 6,148,986 | | | | 750 | | | | 230,919 | | | | 80 | % | | $ | 82 | | | $ | 0.2138 | | | | 52 | % | | $ | 82 | | | $ | 0.1370 | | | | 64 | % | | | 99 | % | | | 64 | % |
LAXSFO | | | 1,303,063 | | | | 26,757,397 | | | | 2,947 | | | | 993,106 | | | | 76 | % | | $ | 91 | | | $ | 0.2053 | | | | 80 | % | | $ | 100 | | | $ | 0.2372 | | | | 105 | % | | | 110 | % | | | 116 | % |
LASSFO | | | 532,690 | | | | 10,599,428 | | | | 1,007 | | | | 416,933 | | | | 78 | % | | $ | 105 | | | $ | 0.1990 | | | | 75 | % | | $ | 119 | | | $ | 0.2141 | | | | 95 | % | | | 113 | % | | | 108 | % |
LASLAX | | | 531,035 | | | | 13,904,401 | | | | 1,699 | | | | 400,903 | | | | 75 | % | | $ | 82 | | | $ | 0.2618 | | | | 63 | % | | $ | 87 | | | $ | 0.2293 | | | | 83 | % | | | 106 | % | | | 88 | % |
PSPSFO | | | 194,931 | | | | 4,085,676 | | | | 389 | | | | 163,670 | | | | 84 | % | | $ | 105 | | | $ | 0.2096 | | | | 61 | % | | $ | 137 | | | $ | 0.1965 | | | | 72 | % | | | 130 | % | | | 94 | % |
SANSFO | | | 511,422 | | | | 9,489,631 | | | | 929 | | | | 415,457 | | | | 81 | % | | $ | 102 | | | $ | 0.1856 | | | | 70 | % | | $ | 108 | | | $ | 0.1682 | | | | 86 | % | | | 105 | % | | | 91 | % |
SEASFO | | | 1,438,231 | | | | 21,945,492 | | | | 1,830 | | | | 1,242,630 | | | | 86 | % | | $ | 120 | | | $ | 0.1526 | | | | 76 | % | | $ | 124 | | | $ | 0.1396 | | | | 88 | % | | | 103 | % | | | 91 | % |
LAXSEA | | | 2,133,188 | | | | 24,287,506 | | | | 1,917 | | | | 1,828,958 | | | | 86 | % | | $ | 127 | | | $ | 0.1139 | | | | 74 | % | | $ | 131 | | | $ | 0.1011 | | | | 86 | % | | | 104 | % | | | 89 | % |
PDXSFO | | | 891,215 | | | | 12,629,513 | | | | 1,281 | | | | 704,277 | | | | 79 | % | | $ | 99 | | | $ | 0.1417 | | | | 66 | % | | $ | 95 | | | $ | 0.1130 | | | | 83 | % | | | 96 | % | | | 80 | % |