"Virgin America receives permission for U.S. flights"

Saturday, May 19, 2007

Virgin America receives permission to fly
U.S. regulators say the carrier's revised plan complies with laws that
limits foreign ownership of domestic airlines.
The Associated Press


Bay Area-based start-up airline Virgin America won final approval Friday to
take to the skies in the United States. 

Federal regulators approved the company's revised plan to operate U.S.-based
commercial flights after the company made numerous concessions, including
replacing its chief executive, to allay concerns about the foreign ownership
stake of Richard Branson's London-based Virgin Group. 

Virgin America, based in Burlingame, Calif., is expected to start service
this summer with flights from San Francisco International Airport to John F.
Kennedy International Airport in New York. 

Within 12 months of getting underway, the airline plans to serve San Diego,
Las Vegas, Los Angeles and Washington's Dulles International Airport. The
company is also considering numerous other cities for future service. 

The Transportation Department said Virgin's revised plan, filed in January,
was now in compliance with laws that limit foreign control of domestic air
carriers.

That includes company ownership rules that cap foreign control of a U.S.
airline at 25% of voting shares. Virgin also agreed to replace Chief
Executive Fred Reid, the former Delta Air Lines Inc. president hired by
British billionaire Branson, founder of London-based Virgin Atlantic
Airways. 

The DOT said it concluded that replacing Reid with a CEO not affiliated with
Branson's Virgin Group would allay worries about the airline's independence.

In December, the DOT tentatively denied Virgin's application, mainly because
of ties to Branson, who has long said he wanted a U.S.-based airline. 

Major U.S. airlines, including AMR Corp.'s American Airlines, Delta and
Continental Airlines Inc., unsuccessfully sought to prevent Virgin America
from flying.

 Do you have an opinion about this story?
Share it with other readers in our CAA Discussion Forums

http://www.californiaaviation.org/dcfp/dcboard.php


*****************************************