“Decisions like this are never easy, but this is the right move at the right time for my family and me. The most difficult part will be leaving the greatest group of teammates anyone could ever have. But I’m encouraged by the fact that as I take my leave, Virgin America is superbly positioned with respect to our financial stability, our reputation with our guests, and our executive leadership,” said Mr. Dana.
Mr. Dana is employee No. 1 at Virgin America, and has held his current position since June 28, 2004. He wrote the first business plan for the Company and played a lead role in developing its initial capitalization and attracting U.S. investors. He led the Company’s campaign to acquire its Airbus A320 family fleet and with his team has raised more than $1.2 billion in aircraft financing. His current responsibilities include treasury, financial reporting, budgets, financial planning and analysis, procurement and fleet planning. In addition, from 2005 to early 2008 he managed Virgin America’s Information Technologies Team. Prior to joining Virgin America, Mr. Dana worked on Wall Street as an investment banker for 16 years at Credit Suisse First Boston and Piper Jaffray covering the aviation and semiconductor industries, including transactions valued at over $50 billion. He holds an undergraduate degree from Yale University and an MBA from Columbia Business School.

“Bob played a foundational role in launching Virgin America and growing the Company from a start-up to the award-winning carrier it is today,” said Virgin America President and CEO David Cush. “He leaves Virgin America as the best capitalized U.S. start-up airline of all time – with a strong business plan and financial portfolio. All of us here thank him for his service and wish him the best in his future endeavors.”

Mr. Dana has agreed to stay on through a yet to be determined date in the first quarter of 2009, in order to facilitate a smooth transition to the new Chief Financial Officer. Spencer Stuart has been retained to conduct a search for the position.

There will be two daily round-trip flights between San Francisco and Boston and three round trips between Los Angeles and Boston, the airline said.

The new service was announced just days after Virgin America said it was disappointed it could not reach an agreement with the major legacy airlines that serve Chicago’s O’Hare International Airport to sublease gate space, even with a 10 percent reduction in airline capacity due to the economic crisis. There are 178 gates at O’Hare, said Karen Pride, a spokeswoman for the Chicago Department of Aviation. Of those, 156 are exclusive-use gates with leases that run through 2018. There are 22 common-use gates, 21 of which are in the international terminal, she said.

United Airlines dominates the Boston-San Francisco route, but Virgin America will have no low-fare competition – although more expensive seats are available. One-way fares will start at $149 in the main cabin; $570 in premium service; and $999 in the first-class cabin.

“Virgin America will get market share from United, which has not invested in its product,” said Henry Harteveldt, an airline analyst at Forrester Research. He added, “Virgin America is very fresh. It appeals to the next generation of air traveler with use of technology,” including in-flight Internet service by the second quarter of 2009. “That will resonate with that base of customers,” said Harteveldt.

San Francisco and Boston are both technology hubs, noted Massachusetts Gov. Deval Patrick. “This new service links two global leaders in the innovative economy,” he said. “Given the challenging national economy, this is an important endorsement of the economic power of Massachusetts.”

Boston becomes the eighth city in the network of the Burlingame-based airline. Virgin America, which launched in August 2007, currently serves San Francisco, Las Vegas, Los Angeles, New York, San Diego, Seattle and Washington.

To view the Multimedia News Release, go to: http://www.prnewswire.com/mnr/virginamerica/36348/

“Boston is one of the world’s premier cities and travel markets, and is a perfect fit for our award-winning service and urban point-to-point, transcontinental business model,” said Virgin America President and CEO David Cush. “We thank the state, city and airport for their support and warm welcome, and we can’t wait to introduce our upscale, high value service to Boston travelers — especially on the SFO-BOS and LAX-BOS routes that until today offered no low fare competition.”

Tickets are on sale today on Virgin America’s website (www.virginamerica.com) and at 1.877.FLY.VIRGIN (1.877.359.8474). BOS-LAX and BOS-SFO fares start at $149 one way in Main Cabin, $570 one way in the carrier’s new Main Cabin Select premium service, and from $999 in its upscale First Class cabin*.

“This new service links two global leaders in the innovative economy with daily flights from Massachusetts to California,” said Massachusetts Governor Deval Patrick. “Given the challenging national economy, this is an important endorsement of the economic power of Massachusetts.”

Launched in August 2007, Virgin America has won a list of travel industry awards including “Best Domestic Airline” in Conde Nast Traveler’s 2008 Readers’ Choice Awards and in Travel + Leisure’s World’s Best Awards. Virgin America’s brand new Airbus A320-family fleet is one of the most fuel efficient fleets in the U.S.

“Virgin America is a great match for Boston and we are happy to welcome them,” said Boston Mayor Thomas M. Menino. “Linking Boston to Los Angeles and San Francisco is not only important for tourism, but also for the innovative businesses we share, such as venture capital, high technology and biotech. This service will make business easier.”

Virgin America offers innovative amenities that appeal to today’s tech-savvy business and leisure travelers, including power outlets and the touch-screen Red(TM) entertainment platform at every seat. The Red system allows guests to control their own experience, with a touch-screen food menu, 25 on-demand films, seat-to-seat chat, a play-list of thousands of MP3s, videogames, and live TV. Already launched on one aircraft, by the second quarter of 2009 the carrier will be the first U.S. airline to offer inflight internet service fleetwide.

“We’re pleased to welcome Virgin America’s new domestic service to the airport and look forward to partnering with them in the years to come,” said Thomas J. Kinton Jr., CEO and Executive Director of the Massachusetts Port Authority, which owns and operates Logan. “We are thrilled that Virgin America selected Boston Logan as its newest destination.”

In addition to a Main Cabin that offers custom-designed leather seats with a deeper, more comfortable pitch, Virgin America’s First Class cabin features international-grade amenities, including white leather seats with 55 inches of seat pitch and lumbar massagers. The carrier’s new premium Main Cabin Select service offers 38-inches of seat pitch, complimentary food and cocktails, an all-access pass to Red’s(TM) countless entertainment options, and priority check-in and boarding.

Virgin America offers daily flights from SFO to LAX, SFO to JFK, SFO to SAN, SFO to IAD, SFO to LAS, SFO to SEA, LAX to JFK, LAX to IAD, LAX to SEA, JFK to LAS, and as of Feb. 12, 2009 — BOS to LAX and BOS to SFO. Connecting flights will also be available to BOS from SAN, LAS, and SEA.

EDITORS NOTE: Virgin America is a U.S.-controlled and operated airline and an entirely separate company from Virgin Atlantic. Sir Richard Branson’s Virgin Group is a minority share investor in Virgin America.

About Virgin America: Launched in August 2007, Virgin America offers guests attractive fares and a host of innovative features aimed at reinventing air travel. Virgin America’s base of operations is San Francisco International Airport’s ultra-modern International Terminal. The airline’s new Airbus A320-family aircraft offer interactive inflight entertainment systems and power outlets for electronic gear. In 2008, Virgin America was named “Best Domestic Airline in the Conde Nast Traveler Readers’ Choice Awards and “Best Domestic Airline” in Travel + Leisure’s World’s Best Awards. To learn more about Virgin America, visit: www.virginamerica.com.

*Terms and Conditions: All fares are one way. Tickets are non-refundable and non-transferable. Tickets must be purchased by 12/21/08. Travel must commence on or after 2/12/09 and be completed by 05/20/09. Blackout dates do not apply. Changes or cancellations can be made for a $75 fee, plus any increase in fare if applicable. Tickets purchased from Virgin America through our reservation call centers will cost an additional $10 per guest per itinerary. Seats are limited, subject to availability, and may not be available on all flights. Fares, routes, fees and schedules are subject to change without notice. Fares do not include Passenger Facility Charges of up to $9 each way, September 11th Security Fees of up to $5 each way and a Federal Segment Tax of $3.50 per domestic segment. A segment is a takeoff and landing. Fares may include a fuel surcharge. Fares will not be honored retroactively or in exchange for any wholly or partially used ticket. Fares are not applicable to check-through connecting flights for city pairs where direct flights are offered. Virgin America will accept one piece of checked baggage up to 70 pounds free of charge for each ticketed guest. The fee per guest for a second checked bag up to 50 pounds is $25.00, and for each additional checked bag of up to 50 pounds is $50.00. Additional fees apply to baggage exceeding these weight limitations, and other baggage restrictions may apply. Flight may not operate daily during off-peak periods.

David Cush, the president and chief executive officer of Virgin America, said Chicago remains at the top of the airline’s wish list for expansion cities, but another city will be announced as the eighth destination for the carrier in the coming days.

Virgin America negotiated with the major legacy airlines that serve O’Hare but was unable to negotiate a lease to meet “the time frame we were hoping for,” said Abby Lunardini, a spokeswoman for the airline.

The legacy airlines control the gates and a lease could not be negotiated even despite the recent cuts in airline capacity, said Cush. Virgin America, based in Burlingame, launched in August 2007 and serves San Francisco, Las Vegas, Los Angeles, New York, San Diego, Seattle and Washington, D.C.

Cush said Chicago Mayor Richard Daily and other officials had been helpful in the airline’s effort to bring Virgin America service to Chicago and another attempt will be made.

“When more airlines compete, consumers win with better service and lower fares,” said Cush. “The industry, the citizens of Chicago and travelers at other congested airports like Newark and John F. Kennedy deserve no less.”

Virgin America will become the anchor tenant at San Francisco International Airport’s Terminal 2 (the former international terminal) after its renovation is complete in late 2010. It currently operates out of the new international terminal.

In February, Virgin America sought authority to fly from Los Angeles to San Jose del Cabo, Mexico, but the Department of Transportation awarded the route to United Airlines, with Delta Air Lines the backup.

It launched disciplinary action last week following claims staff had used Facebook to criticise its safety standards and call passengers “chavs”.

The airline said the crew’s behaviour “brought the company into disrepute”.

It is understood the messages, which have now been removed, related to planes flying from Gatwick.

Virgin Atlantic started an investigation last Thursday after messages reportedly appeared on Facebook that called its passengers “chavs”.

They also reportedly claimed the planes were full of cockroaches and alleged the airline’s jet engines were replaced four times in one year.

In a statement, the airline said: “Virgin Atlantic can confirm that 13 members of its cabin crew will be leaving the company after breaking staff policies due to totally inappropriate behaviour.

“Following a thorough investigation, it was found that all 13 staff participated in a discussion on the networking site Facebook, which brought the company into disrepute and insulted some of our passengers.

“It is impossible for these cabin crew members to uphold [our] high standards of customer service… if they hold these views.”

A spokesman for the airline added that there was “a time and a place for Facebook”.

“There is no justification for it to be used as a sounding board for staff of any company to criticise the very passengers who ultimately pay their salaries.

“We have numerous internal channels for our staff to feed back legitimate and appropriate issues relating to the company.”