Republic Agrees to Buy Virgin America

Today’s not a normal posting day, but with news like this, I couldn’t wait. It’s been a couple weeks since we found out that Virgin America might be for sale. Though most of the rumors have centered on Alaska and JetBlue, it looks like a dark horse has come in and beaten both of them. Republic is buying Virgin America, and even more surprising, it’s renaming it Chautauqua America. I did not see that coming.

Chautauqua America April Fools

You’d think Republic would have learned from its last foray into the branded airline space that this was a bad plan. Republic, remember, bought both Frontier and Midwest and merged them undre the Frontier name. The airline brought nothing but problems to Republic. Sure it lost money, but it also caused a huge issue when pilots at Republic felt they should be merged in with the Frontier pilots. The team at Frontier ended up pushing forward with the beginnings of an ultra low cost carrier strategy, but just as they were getting traction, Republic walked away and sold the airline for nothing. So, uh, why the heck would Republic try this again?

After all, things for Republic are worse today. It struggled to keep enough pilots on the payroll and ran into operational issues. Delta sued the airline as it desperately tried to restructure. In the end, it went into bankruptcy to try to fix things. Throughout the bankruptcy process, Republic’s mantra has been “simplicity.” It is shedding its motley fleet types and focusing only on the Embraer 170/175. It’s also going down to a single operating certificate. So again… why, Republic, why?

It sounds like Republic CEO Bryan Bedford has just been drinking too much industry Kool-Aid. “It seems like merging in bankruptcy has worked pretty well for others, so we figured we’d give it a shot as well.”

Sure it adds complexity, but Bryan sees a big opportunity here that can’t be passed up. It starts with renaming the airline Chautauqua America, one of Republic’s former subsidiary names.

Bryan explained, “it’s pretty expensive to pay for that licensing fee from Virgin Group, so we thought we could save money by rebranding. It was a gift from god that nobody took the Chautauqua trademark when we stopped using it, so we’re bringing it back along with that trademark blank, blue tail.”

The name is changing, but it doesn’t sound like basic premise of the airline is going to be any different. Bryan said, “we’re definitely keeping the mood-lighting. I mean, that is why people fly Virgin America today, right?”

My big question isn’t about what happens today, but what happens in the future. Bryan admitted that the Republic pilots would try for single-carrier status again, and he was ok with that, saying they needed to start paying their people more anyway.

Most importantly for Republic, they finally have somewhere to put the C-Series aircraft he previously ordered for Frontier. Apparently the bankruptcy hearing about shedding those obligations didn’t go very well, so the airline felt it needed to make a move. Those are expected to start flying in Dallas as soon as they’re delivered so they can stop losing a silly amount of money in that market. Instead, Chautauqua America expects to lose only a “moderately silly” amount of money.

Future deliveries will be used to establish hubs in other cities with too much competition and limited prospects for success.

Bryan was asked at the press conference why he was trying this again after the Frontier strategy failed. He said to look at Frontier now. The airline is doing so well that “he’d be crazy not to try it again with Virgin America.” So does that mean Chautauqua America is going to follow in Frontier’s footsteps and turn into an ultra low cost carrier? Bryan said it might, again pointing to the mood-lighting as a key differentiator above all.

And if you believe this, you should stop drinking so early in the day. Happy April Fools Day to all!

[Original Virgin America photo via Flickr user InSapphoWeTrust/CC-BY-SA 2.0]

(Visited 8,916 times, 1 visits today)

Get Posts via Email When They Go Live or in a Weekly Digest

Leave a Reply

43 Comments on "Republic Agrees to Buy Virgin America"

avatar
Sort by:   newest | oldest | most voted
dc.contarino
Member

We love you, Brett. This made me spit my coffee out.

mpevny
Member

This must be April fools joke right?

christophe.bottega
Member

Love the concept !…

SEA Flyer
Member

Ha ha, Happy April Fools Day! Aside from the spoof about Republic making the purchase, is there any truth to Virgin America being for sale?

Danie
Member

“Trademark blank blue tail” is a bit of an oxy moron. Meanwhile, “Chautauqua” is a name that is well known in the airline business, but not outside of it.

Republic would have been well advised to hire some marketing expertise before announcing what they aim to do with an airline that has done one of the best branding and image jobs for an airline in the U.S.

Danie
Member

April Fools. Not a fan of these. They’re irresponsible.

CR
Member

Ha! You got me just until the name of the new airline! Happy April fools!

CP
Guest

I just spit out my coffee.

ganttc
Member

LOL!

edahlvig819
Member

Wow. You had me for a good paragraph or 2….! Good one :)

Sent via the Samsung Galaxy Note® 4, an AT&T 4G LTE smartphone

David
Guest

Can you change the link so folks can send this around without giving it away!!

http://crankyflier.com/2016/04/01/republic-agrees-to-buy-virgin-america-yeah-right-april-fools/

MeanMeosh
Guest

Happy April Fools Day to you too, Cranky :)

joshuageller78
Member

Wow Brett! Good one! Totally got me. My mouth was to the floor! Hallelujah it’s only an April fools hoax. Haha!

Jeremy
Guest

2 paragraphs before I remembered what day it was. I was all like WTF.

Sanjeev Muralidharan
Guest

“Mood lighting as a differentiator” LOL. Incredible post – happy April Fools to all!

SEAN
Guest

When I saw the headline, I was… like wait a minute. However once I clicked & read one paragraph, I realized… April fools. To be fare, my screen reader gave part of it away, but I enjoyed the good laugh regardless.

And to the person above who didn’t think that this was funny, all I can say is… you need to laugh a little more & enjoy the moment.

I cant wait to see what WestJet comes up with this year since “smartseats” was so hysterical.

SEAN
Guest

Here it is… from WestJet!

john.hagg
Member

I knew right away this was an April Fool’s WINNING joke.  Well written sir!  John H. in Lakewood, CO

Eric C
Guest

April fools: Alaska to buy Virgin America and start twice dailies to Cuba! Oh wait….

drybean
Member

I was already thinking about air service possiblities and asking if the 170s were going to DAL or DFW! Great post!

David SF eastbay
Member

I knew there would be an April Fool’s Day story before the day even started…..lol

DesertGhost
Guest

I understand that Indigo Partners is providing the financing.

seahurst2
Member

April Fool!?

Sara Callahan
Member

You got me! Very well done!

Ezra
Guest

You got me! I realized at “it’s renaming it Chautauqua America.”

vasukiv
Member

“…Chautauqua America expects to lose only a “moderately silly” amount of money.” Love it!

Spirit FF
Member

LMAO…literally! I thought WTH! Haven’t they learned? I even went to Yahoo Airline/Aviation News to look for the Press Release….Good One! Fooled me.

Axelsarkiss
Member

Got an audible “what!?” out of me before I remembered the date.

Well done.

Bill Hough
Guest

This is a good one, even if a bit obvious. Thanks

Oliver
Member

LOL

Marjorie9018
Member

I get busy; I forget it’s April 1. I was with you up until naming it Chautauqua Airlines, which no one can say, much less spell. Good one, Brett!

Yo
Guest

I was hoping they would name it Family Avatar Gumbo Air.

Kermit
Guest

As a former midwest pilot now flying for VA I find this about as amusing as Sir Richards spoof on the VA name change which came out yesterday. Hopefully the deal with Jetblue won’t result in nearly every employee losing their job like the RAH/Midwest deal did.

SEA Flyer
Member

I miss Midwest Airlines (the pre-acquisition carrier). Thanks for flying for Midwest. It was special in its day. I would hate to see VX go the same route as YX did.

PF1
Guest

How do the VA folks that you know feel about the possibility of a VA/Alaska deal?
Whatever happens, I hope the employees of VA are treated well, and the transaction is smooth for both sides.

martython
Member

Brilliant!

Ken
Member

you got me

Michael Rowan
Member

I think you held a straight face for way too long when composing this post … And I spent way too long believing it :)

George
Guest

April Fool’s!
Ha Ha Ha!

eleanor.c.moore
Member

OK Brett, you got me up till the end, and all the while I thought this was really CRAZY!

Thomas
Guest

We believe this world can be a better place, free of lies, chaos, theft and misunderstanding, our team of hackers can encrypt any data and help protect sensitive information from any hacker who might try to hack your systems. Hire a hacker now! Our hackers have all the tools, our professional hackers have all the knowledge and tools to get the job done. No matter what your hacking need, we can get it done in a professional and timely manner.
Contact: tracktechnet@gmail.com or text +12162207328

wpDiscuz