Virgin America cleared to fly
#1
Virgin America cleared to fly
Virgin America cleared to fly
Wednesday March 21, 12:10 pm ET
Virgin America Inc. won approval to begin flying, pending changes to its ownership plan.
The Burlingame, Calif.-based startup airline, owned in part by British billionaire Richard Branson, must replace CEO Fred Reid and make other changes to its corporate structure as a condition of final approval from the U.S. Department of Transportation.
Virgin America first sought a license to fly in December 2005, when it raised more than $177 million in startup capital. But federal regulators expressed concerns over whether the airline met U.S. ownership standards, citing Branson's involvement.
The DOT on Tuesday outlined a number of changes it wants to see in Virgin America's corporate makeup. Assuming the airline makes those alterations, the airline can start offering service.
Among the changes the DOT requires is replacing Reid, an airline industry veteran hired by Branson, the entrepreneur who controls London-based venture capital organization Virgin Group Ltd. The agency said replacing Reid with "a U.S. citizen who has no prior affiliation with the Virgin Group," which would remedy regulators' concerns over the airline's independence from Branson.
Virgin America also must modify its trademark license agreement with Virgin Group to remove certain geographic and operational restrictions and the requirement that it pay royalties to the Virgin Group should the airline conduct operations independent of the Virgin name.
Virgin America said it plans to offer low-cost domestic air service like Dallas-based Southwest Airlines Co. (NYSE: LUV - News) and JetBlue Airways Corp. Its first route will be between San Francisco and New York City with other routes to follow.
Virgin America has planes and has hired 170 employees, including airport staff and crew members. The airline could begin offering flights as early as this summer.
Rival airlines like Fort Worth-based American Airlines (NYSE: AMR - News) and Houston-based Continental Airlines Inc. (NYSE: CAL - News), which lobbied against Virgin America. A spokesman for American said Wednesday that the airline was still studying the order and had no comment at this time.
Opponents have three weeks to object to the DOT decision. It is not likely that the DOT will reverse the decision it issued Tuesday.
Published March 21, 2007 by the Dallas Business Journal</I>
Wednesday March 21, 12:10 pm ET
Virgin America Inc. won approval to begin flying, pending changes to its ownership plan.
The Burlingame, Calif.-based startup airline, owned in part by British billionaire Richard Branson, must replace CEO Fred Reid and make other changes to its corporate structure as a condition of final approval from the U.S. Department of Transportation.
Virgin America first sought a license to fly in December 2005, when it raised more than $177 million in startup capital. But federal regulators expressed concerns over whether the airline met U.S. ownership standards, citing Branson's involvement.
The DOT on Tuesday outlined a number of changes it wants to see in Virgin America's corporate makeup. Assuming the airline makes those alterations, the airline can start offering service.
Among the changes the DOT requires is replacing Reid, an airline industry veteran hired by Branson, the entrepreneur who controls London-based venture capital organization Virgin Group Ltd. The agency said replacing Reid with "a U.S. citizen who has no prior affiliation with the Virgin Group," which would remedy regulators' concerns over the airline's independence from Branson.
Virgin America also must modify its trademark license agreement with Virgin Group to remove certain geographic and operational restrictions and the requirement that it pay royalties to the Virgin Group should the airline conduct operations independent of the Virgin name.
Virgin America said it plans to offer low-cost domestic air service like Dallas-based Southwest Airlines Co. (NYSE: LUV - News) and JetBlue Airways Corp. Its first route will be between San Francisco and New York City with other routes to follow.
Virgin America has planes and has hired 170 employees, including airport staff and crew members. The airline could begin offering flights as early as this summer.
Rival airlines like Fort Worth-based American Airlines (NYSE: AMR - News) and Houston-based Continental Airlines Inc. (NYSE: CAL - News), which lobbied against Virgin America. A spokesman for American said Wednesday that the airline was still studying the order and had no comment at this time.
Opponents have three weeks to object to the DOT decision. It is not likely that the DOT will reverse the decision it issued Tuesday.
Published March 21, 2007 by the Dallas Business Journal</I>
#3
If I "HAD" to FlyinA, I probably would have. I'd also be filling out apps for a better job and trying to get ALPA or an in house union on the property as soon as I could. If this thing gets off the ground, I wish the pilots well in transforming that place into respectable, professional employment or burning it to the ground. If you do get on, I hope you work on that also. If you meet their mins, you shouldn't be selling yourself, your fellow VU pilots, and the rest of the industry so short. I'm glad to not find myself in your shoes, so I won't try to berate your motivations. But it sounds like your motivations start and end with "I". Hope I'm wrong.
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