Virgin America Chooses Empty Seats Over $41 Dallas-NYC Fares
- Pricing battle creates `toxic fare environment,' CEO says
- Airlines fight to maintain market share amid discounting
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Virgin America Inc., caught up in a Dallas fare war, said it will fly out of the city with empty seats rather than sell tickets at rates so deeply discounted it can’t make money.
The pricing battle began in 2014 when Southwest Airlines Co. and Virgin added flights after restrictions at Dallas Love Field were lifted and ultra-discounter Spirit Airlines Inc. increased service from nearby Dallas-Fort Worth International Airport, American Airlines’ biggest hub. Carriers trimmed fares to fill seats that flooded the market.