As I predicted a few months ago, Virgin America has caused the competition to heat up and prices to drop.

Yesterday, several airlines dropped prices to the $200 range between Los Angeles and Washington D.C., with Virgin America matching late in the evening with a drop of $50.

The $200 price point is a super deal for passengers traveling coast-to-coast. Everyone should take advantage.

Notice the airlines are hedging a bit by starting travel after the Thanksgiving rush with holiday blackouts … but still a very good deal. And, it should be noted that United Airlines price still hovers at the $300 range — I would expect them to match or even toss out something a bit lower just to show they are in it to win.

Update 10:25am EDT:

In the 10:00am EDT airfare distribution, American Airlines matched to $198 and in a “Crazy Ivan“, Virgin America raised from $208 to $258 (rescinding the $50 drop last night). United still on the sidelines. Put your seat belts on this is likely to be a wild ride …