Sir James

SEATTLE POST-INTELLIGENCER
http://seattlepi.nwsource.com/busine...n_America.html

Thursday, December 8, 2005 · Last updated 1:51 p.m. PT

Virgin America gets certification finances

THE ASSOCIATED PRESS

WASHINGTON -- The Virgin brand's new U.S.-based low-fare airline on Thursday submitted an application for federal certification after lining up $177.3 million in financing that was led by a group of American investors who will assume majority ownership of the carrier.

The bulk of the equity and debt behind Virgin America Inc. - $88.9 million - will come from VAI Partners LLC, a group backed by Black Canyon Capital LLC and Cyrus Capital Partners LP, the company said in a filing with the Department of Transportation. Virgin Group Ltd., the London-based parent company of Virgin Atlantic Airways, Virgin Express in Europe and Virgin Blue in Australia, will provide the remainder of the financing and become a minority shareholder.

U.S. law forbids foreigners from owning more than 49 percent of the equity or 24.9 percent of the voting power of a domestic carrier.

Virgin America said its newly formed board of directors named Mark Lanigan, a managing director at Los Angeles-based Black Canyon Capital as chairman of the airline, which is scheduled to launch transcontinental service in 2006. Frederick Reid, the former president of Delta Air Lines Inc., was named chief executive officer.

In June 2004, Virgin America announced that it had agreed to buy and lease up to 105 narrow-body jets from Airbus SAS and the carrier had originally scheduled to begin flying in mid-2005.

Virgin America previously announced that it intended to fly between San Francisco and New York. It did not elaborate on which cities it intended to serve in Thursday's filing with the DOT. It intends to employ 2,000 people by its second year of operation.

Virgin America's planned entry into the U.S. market comes as budget carriers such as Southwest Airlines Co., and JetBlue Airways Group Inc. are growing, while traditional carriers such as Delta and Northwest Airlines Corp. are struggling. Both Delta and Northwest are restructuring under bankruptcy court protection.

Virgin America said its corporate headquarters and operations will be based in San Francisco. Originally the corporate headquarters was going to be in New York.

Cyprus Capital is based in New York.

edik

Really hope the airline fails!

LAfrequentflyer

Why? I'd like nothing more that to see it soar and perhaps employ a few hundred / thousand americans for years...Whats wrong with working americans being allowed to put food on their table?

-LA

edik

LAfrequentflyer
There is nothing wrong with job opportunities. The thing that I am afraid of that Virgin American will come in and create more competition for airlines like Alaska, Delta, United, American and the list goes on. Another thing I have read in the pas discussions people had here, they said that the CAPTAIN will be making around 60K. I just don’t want this airline coming in and tacking ex employees of some airline that they made go bankrupt.

LAfrequentflyer

What you described is free-market economics. Competition is good, healthy, and needed to eliminate the bad / poorly managed business, the flawed business plan, etc...

Why should Branson pay more than 60K - if pilots are willing to work for that amount? Put yourself in his shoes..If you were a CEO - you'd pay your pilots 150K a year and destroy your cash reserve / company..All so your pilots made a six figure salary...

-LA

Skyone

And sir, how in the world do you have any credible evidence that 60k is what Virgin will pay a A320 captain. Just a bunch of pilots like myself speculating on what if's and so forth. I hope it makes it big time with a decent salary. There are enough displaced, or early retired pilots with major qualifications that would like to stay in this industry. Virgin, Skybus and others could be just the ticket.

S1

edik

Its just unfair to have a 25 year captain of some big airline loose everything that he worked so hard for. And yes he has no other choice then go and work for a company that is willing to pay 60k/year.
One of the big things that i am looking for going into the field is stability, which there have been none in the past couple of years in the states.
So now the fuel prices gone down, but airlines are still struggling because of airlines such as ALLEGIANT. But that an another topic.

edik

Look all I am saying, if Virgin treats there employees with respect, has good benefits and a comparable salary to other airlines I got nothing against it. But if it comes to the states, and starts paying their captains same as a third year FO at some major airline, that is what I am against.

I am not an airline expert (I am still a sophomore in college, so I still have much more to learn about the industry), just stating my opinion, and what I think of the up coming airline.

ShadowFlight

That's a mild understatement. Why don't you worry about maintaining your GPA instead of worrying about this start-up.

When you have more hours than posts, you're attitude will be more tolerant.

BTW, did UND stop offering Karma 101 to students? Wishing this or any airline to "fail" is something that could haunt you later on.

Especially when it's YOUR job on the line at an airline that someone wishes it to "fail"...

Rant over...

SF

edik

To make things clear the only reason I don’t want the airline to succeed is because it might put the airlines I want to work for out of business. I much rather the airline expand vs. have some foreign airline come to the states and offer jobs that hardly provide any stability. And when you said "YOUR job is on the line,” I have higher goals then working for some start up that pays nothing and does not provide any stability.

It seems like every time I say something, people take it as if I am trying to start an argument.


PS If I were you I would not worry about my GPA