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Last week the Virgin Group led by Richard Branson launched Virgin America which will definitely cause some stir in the airline industry.  Because of Virgin’s low-cost flights between Los Angeles, New York, and San Francisco, other carriers have been forced to lower their prices to compete with Virgin.  

So, who will eventually pay for these price cuts?  Will it be the customers and front-line employees?

I predict that the other airlines will cut costs which will include employee compensation - either that or they won’t serve food on the planes anymore!  Hmmm…They may even start charging customers to use the restroom!  

Is it really that difficult to provide customers with a good experience but still keep prices reasonable?  Let’s hope that Billionaire Branson has the solution ;)