Virgin America is regularly voted to be one of the top airlines in America. It offers premium services including leather seats, fleet-wide wi-fi, live TV and so on. 
The company is unique within the industry because an increasing number of airlines try to squeeze more customers in one plane while Virgin America continues to provide outstanding services.
However, in terms of running a business, the airline is not successful. The company has posted a huge net loss of $671 million and an operating loss of $447 million. The significant loss is due to the wrong strategy Virgin Company has.
The premium services it provides come along with high price, and not all of customers are willing to pay for it. In the airline industry, the buyer power and the threat of substitutes are high. The consumers can easily choose another airline company if Virgin America doesn’t appeal to them. Most consumers tend to choose the flight which offers a low price. Virgin America also has a false assumption that the customers will choose product quality over price. This assumption pushes the company off the right track especially when the company is “new born” and it needs to increase its market share.
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