Can jetBlue become a more low cost airline?

Check out this story in the LA Times about how Virgin America is causing a price war at LAX. The story goes into the history of jetBlue and Los Angeles. Until recently jetBlue’s LA airports included Burbank and Long Beach only. But, starting May 21, jetBlue will fly from Los Angeles International Airport. Why the surprise change? Because of the new virgin in town.

Then out of the blue last month, the low-cost carrier stunned LAX officials by asking for gates there. Moreover, it wanted them in Terminal 6 next to Virgin America, the airline started by eccentric British billionaire Richard Branson.

LAX passengers flying to popular domestic destinations such as San Francisco and New York are enjoying some of the lowest fares in years despite record fuel prices.

“We’ve become a hotbed of competition,” said Paul Haney, the airport’s deputy executive director. “I don’t know if we could say that without Virgin America.”

Since Virgin America began flying out of LAX in August with fares as low as $44 one-way, competitors have been beefing up flights and lowering fares and even JetBlue has been prompted to enter the market.

Ah competition: Check out the entire story here.

Hey, can Sir Richard Branson get into the oil business? Maybe Virgin Oil (bio fuel whatever) can give Exxon-Mobile a run for its money and our gas prices wouldn’t be $4/gallon.

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