8/08/2007: Virgin America Begins Commercial Service

On August 8, 2007, Virgin America (VX) began commercial service with inaugural flights to San Francisco International Airport (SFO) from New York-John F. Kennedy International Airport (JFK) and Los Angeles International Airport (LAX). The first New York flight, VX1, departed nearly an hour late after thunderstorms disrupted JFK.

The airline had planned an August 8 launch schedule of two daily flights between San Francisco and New York and five between San Francisco and Los Angeles. New York-Los Angeles service followed later that month.

A launch shaped by US ownership rules

Virgin America was incorporated as Best Air Holdings in 2004 and adopted the Virgin America name in November 2005, according to its 2014 registration statement. The Virgin name was already established in aviation through Virgin Atlantic’s 1984 launch.

The US Department of Transportation (DOT) denied Virgin America’s application in December 2006 after finding that the proposed carrier did not satisfy US citizenship and control requirements. The airline revised its ownership and governance arrangements, and the DOT approved its application on May 18, 2007. Its certificate became effective on August 7, clearing the final regulatory step before the launch.

The Virgin America product

Virgin America built its identity around an Airbus A320-family fleet and a cabin product that included mood lighting, power outlets, seatback screens, and the Red entertainment system. Red also allowed passengers to order food and drinks from their seats. In its 2014 filing, the airline said it was the first carrier to offer inflight Wi-Fi across its entire fleet.

Airbus delivered the first A321neo to Virgin America in April 2017, making it the first airline to receive the new variant. Virgin America had separately signed for the smaller A320neo in December 2010.

Acquisition by Alaska Air Group

Alaska Air Group announced its agreement to acquire Virgin America on April 4, 2016, for US$57 per share in cash, an equity value of about US$2.6bn. Alaska said the deal would expand its West Coast presence and provide greater access to California and capacity-constrained East Coast airports, according to transaction materials filed with the US Securities and Exchange Commission.

The acquisition closed on December 14, 2016. On April 25, 2018, Alaska moved the combined operation to one reservation system and one passenger-facing brand. Some aircraft retained Virgin America paint for a time, but tickets were sold under the Alaska name.