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Innovation at Virgin America: Creating and Sustaining a Distinctive Brand
EXCERPTS
FOCUSING ON INNOVATION
Since its launch, Virgin America had striven to transform the domestic air travel experience from a purely functional experience into something much more reminiscent and stylish. Starting with the check-in areas at many Virgin America terminal, consumers could feel the difference – the soft beat of club music and distinct lighting set the tone for a unique travel experience. In May 2009, Virgin America became the first airline to offer fleetwide WiFi and till early 2014 remained the only US airline to offer the Gogo In-Flight WiFi network on every flight. The airline was also the only US carrier to install power and USB outlets in all its seats... |
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BUILDING THE BRAND IMAGE
Since its inception, Virgin America had put a lot of effort into building its brand image. In spite of suffering losses over the first five years of its existence, the airline continued its endeavor to become an outstanding airline brand. Leveraging the reputation of the Virgin brand, a global brand founded by Richard Branson, Virgin America focused on developing a unique brand personality and this resulted in several astonishing advertising campaigns...
DECISION TO MERGE WITH ALASKA AIRLINES
Questions over whether Virgin America could succeed in the hypercompetitive domestic airline market and continue with its innovations were put to rest when in April 2016, Virgin America announced that the Alaska Air Group, Inc., parent company of Alaska Airlines, would acquire it for US$57.00 per share in cash...
CAN THE VIRGIN AMERICA BRAND SURVIVE?
The deal perplexed industry analysts and brand managers alike. While both airlines and their passengers were expected to benefit from Virgin America’s transcontinental routes and Alaska Airline’s superior frequent flyer program, some analysts were skeptical...
EXHIBITS
Exhibit I:The Route Network of Virgin America
Exhibit II: Key Financials of Virgin America
Exhibit III: Operating Statistics of Virgin America
Exhibit IV: The Amenities offered by Virgin America
Exhibit V: Awards and Accolades for Virgin America
