Virgin America, the newest member of British maverick Richard Branson’s airline empire, is coming to Hawaii with its mood-lit cabins, leather seats, expansive entertainment system and onboard seat-to-seat chat messaging.
The Burlingame, Calif.-based airline, which two years ago said it was targeting Hawaii for expansion, made it a reality Tuesday by announcing it will begin daily flights from San Francisco to both Honolulu and Kahului later this year.
Virgin America, launched in 2007, plans to fly new 149-seat Airbus 320 aircraft to Honolulu starting Nov. 2 and to Kahului beginning Dec. 3.
"With a loyal following of Bay Area-based business travelers who have long requested our expansion to the islands, we couldn’t be more pleased to offer our ‘work-hard/play-hard’ frequent flyers the opportunity to fly in style to the ultimate getaway," Virgin America President and Chief Executive Officer David Cush said in a statement.
Hawaii was "the big glaring hole" in Virgin America’s network from San Francisco, Cush said in an interview with the Associated Press.
Virgin Group, founded by Branson, is now comprised of more than 400 companies. It is a minority share investor in Virgin America as well as in AirAsia X, the Malaysian-based airline that said Monday it will begin service to Honolulu from Kuala Lumpur, with a stopover in Osaka, Japan, later this year.
Branson is the 330th-richest person in the world — 12th in the United Kingdom — with a net worth of $4.9 billion, according to Forbes.
Virgin America will add capacity to Hawaii in an already crowded market from the U.S. West, the state’s largest source of visitors, but airline experts don’t expect it to dramatically alter fares.
"This isn’t going to be a competitive earthquake in the market," said Colorado-based airline consultant Mike Boyd, who called Virgin America’s entry into the islands "a smart move. One A320 a day doesn’t move the needle."
Virgin America offers three levels of seating on its aircraft. In first class the seats have lumbar massagers and can recline 165 degrees. While first-class passengers receive menus, passengers in the rest of the cabin have an on-demand food-and-drink ordering system at every seat back. There are also more than 20 on-demand movies, 24 television channels and a 3,000-song library.
Local aviation historian Peter Forman said Virgin America will be constrained in what it can charge for fares because it’s a smaller jet and more expensive to operate than the wide-bodies the larger airlines are operating.
Nevertheless, Forman also praised the move by Virgin America.
"Currently, Virgin America brings passengers westbound into San Francisco, so it’s a logical connection to keep them going to Hawaii," he said. "It fits their route structure well."
Hawaiian Airlines, United Airlines, Delta Air Lines and Alaska Airlines already fly to either Honolulu, Kahului or both out of the three Bay Area airports in San Francisco, Oakland and San Jose. In addition, Southwest Airlines has been saying for the last few years it is considering flying to Hawaii, but it hasn’t announced any service.
Hawaii’s largest carrier, Hawaiian, said it is up to the challenge of facing another competitor.
"Hawaiian is no stranger to competition — this is the inherent nature of the industry," Hawaiian spokeswoman Alison Croyle said. "We have been earning the right to fly every route we’ve served throughout our 86-year history. We believe that our quality of service and our authentic Hawaiian hospitality give travelers a sense of place and culture that is unrivaled among our competitors."
By year-end, scheduled airlift to Hawaii is expected to top 11.8 million seats, an increase of 6 percent over 2014, according to the Hawaii Tourism Authority.
The new flights will generate annually an estimated $138.6 million in visitor spending and $14.8 million in tax revenue, according to the HTA.
Virgin America said the two Hawaii destinations will bring its total number of cities served in the U.S. and Mexico to 23. The airline said it still needs approval from the Federal Aviation Administration for the long overwater flights.
"We are excited about the business and leisure travel opportunities the service will provide," Gov. David Ige said in a statement.
