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Mon, Mar 22, 2010

Virgin America Announces 2010 Growth Plan

Airline Ends Flights From John Wayne, Adds Orlando And Looks To Toronto

Virgin America recently announced network expansion plans that include daily nonstop flights from both LAX and SFO to Orlando International Airport (MCO) beginning August 19, 2010. Additionally, the airline announced its intent to serve Toronto Pearson International Airport (YYZ) with daily flights from both LAX and SFO as early as June 2010.

Coming on the heels of the Company’s new Department of Transportation-approved ownership structure, Virgin America is poised for growth in 2010 – with six additional aircraft entering its fleet this year and three additional aircraft scheduled for the first quarter of 2011. By this time next year, the airline’s fleet will have grown by almost one-third.

“With strong financial performance, a new ownership structure and growth in fleet size, we’re pleased to be able to expand to world-class destinations like Orlando and Toronto this year,” said Virgin America President and CEO David Cush. “Both cities are major travel destinations from the West Coast, and we’re looking forward to introducing our service to travelers in these and other new markets in 2010 and beyond.”

“We are pleased that Virgin America, the airline recently ranked best domestic midsize airline in premium and economy class in the 2009 Zagat Global Survey has chosen Orlando as its newest destination. The nonstop service to and from Los Angeles and San Francisco will offer new options and low fares,” said Steve Gardner, Executive Director of Orlando International Airport.

Also today, Virgin America will file an application with the U.S. Department of Transportation (DOT) seeking authority to fly from the United States to Canada. If approved, this would become the airline’s first international destination. As set forth in the application, Virgin America, subject to receipt of all operating authority, plans to begin service as early as June 2010 on the following routes:

The airline has also announced that it will end service to John Wayne Airport (SNA) effective May 26, 2010. Given Virgin America’s new fleet plan, the move will allow the airline to immediately launch service into the more lucrative Orlando and Toronto long-haul markets. All of Virgin America’s SNA teammates will be guaranteed equivalent positions at the airline’s expanding LAX base or in other areas of its growing operation.

“Despite our relatively strong performance at SNA, given our new fleet plan and network prospects, we’ve made the decision to focus on the immediate long-haul opportunities that the Orlando and Toronto markets provide. We thank the SNA airport leadership and community for supporting us – and our teammates for their dedication,” added Cush.

In addition to Orlando and Toronto, Virgin America intends to announce at least three more new destinations in 2010. The airline continues to see growing sales, a maturing route network and financial growth. For Virgin America’s most recently reported quarter (the third quarter of 2009), the airline reported its first quarterly operating profit, a year-over-year revenue increase of 38.3 percent, record load factors and improved unit costs.

FMI: www.virginamerica.com

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