MCDUDU

WRONG!!!!! BR has option puts as part of the original deal. They can execute at anytime!!!!! It does not require approval...if it did then that would lead to Branson calling the shots.

By Mary Schlangenstein
Bloomberg News

Virgin America, the airline partly owned by British billionaire Richard Branson, said U.S. investors retain majority control of the carrier and a new regulatory review isn't justified.

Virgin America urged the U.S. Transportation Department in a filing Friday to reject a Feb. 10 request from Alaska Air Group to hold a public hearing on whether the carrier is violating federal ownership rules.

Virgin America said its "robust and effective competition" prompted Alaska's request.

Alaska's filing was the latest clash between Virgin America and U.S. competitors. Virgin America said federal regulators addressed each of Alaska's concerns when they initially found in 2007 that the Burlingame, Calif.-based carrier to be in compliance with laws that bar foreigners from controlling U.S. airlines or owning more than 25 percent of voting stock.

"Virgin America has complied with all ongoing ownership, control and fitness requirements and required notifications," the filing said. "Virgin America will also continue to comply with all department notification requirements and to ensure its compliance with all ownership and control requirements."

Bobbie Egan, an Alaska Airlines spokeswoman, said she hadn't seen the filing and didn't immediately comment.

Alaska Air Group, parent of Alaska Airlines and regional carrier Horizon Air, said in February that cash obtained by Virgin America, its report of losses in 2008 and "recent media reports" raised "very serious concerns" that effective control of the carrier was "perilously close to reverting to the British Virgin Group."

Branson's London-based Virgin Group put up 25 percent of the initial $177 million investment to start Virgin America, as well as a $53 million loan. When Virgin America sought permission to fly in 2006, airline officials said U.S. investment firms Black Canyon Capital in Los Angeles and New York-based Cyrus Capital Partners controlled a 75 percent stake.

The Financial Times reported last month that Virgin Group hired Lazard Ltd. to recruit new investors on concern that Cyrus Capital and Black Canyon might exercise an option to recall their initial investment in Virgin America. That would leave Virgin Group as the sole shareholder in the closely held carrier, the newspaper said, citing unidentified people familiar with the matter.

The Transportation Department approved Virgin's application to begin flights "including the redemptive rights, because it was satisfied by the various restrictions that were placed on their use," the airline said in Friday's filing.


Also from USA Today:


Should either of the funds, Black Canyon Capital or Cyrus Capital Partners, exercise unusual "put" rights in their investment agreement with Branson's Virgin Group to start the airline, the Britain-based group would be forced to buy back the shares.

aviators99

What you left out was the article in Aviation Week with statements from Virgin America that says what I said. The DOT went through the shareholder agreements before granting the certificate. Do you think DOT would have approved the airline with the ability by shareholders to put it in foreign hands at their whim? Virgin's statements in Aviation Week make perfect sense in that light. USAToday and others are basing their info on supposition (as did I, when I first read the Financial Times article).

BR has the put option, yes. But they can't exercise them until replacement US investors are found.

MCDUDU

one more time....
Also from USA Today:


Should either of the funds, Black Canyon Capital or Cyrus Capital Partners, exercise unusual "put" rights in their investment agreement with Branson's Virgin Group to start the airline, the Britain-based group would be forced to buy back the shares

NO where does it say that VA has to find anyone prior to the rights being exercised.NOWHERE except in your mind and VAs propaganda aimed at cooling the pilots fears!

What I left out was what VA said? You have gtbsm! So thats the source for all this dribble from you? Get a grip man..oh wait too late you're still drinking that SF latte laced cool aid!

Man do you think VA wants you guys to stay put no matter what?

a smart man has options a foolish man stumbles on till he has none!

Barneyrubble

Hey Man, just let it go . You or the other half do not work here anymore.

tzskipper

Quote:
Originally Posted by aviators99

Just to keep with the facts:

Virgin America Defends Ownership | AVIATION WEEK

Quote:

But in the Feb. 20 response filed with the DOT, Virgin America reiterated what executives of Virgin USA and Virgin Management told The DAILY in a face-to-face meeting Feb. 18: There is no threat that the airline will lose the U.S. ownership and control it is required to maintain under U.S. law, and that it has been privately keeping the DOT up-to-date on its financing. In part, that’s because the investors’ original deal with the airline essentially forbids them from cashing in their stakes until the Virgin Group finds U.S.-based replacement investors, they said (DAILY, Feb. 19).

IFlyEm

Branson is in the final stages of getting his US Citizenship. Then it will all be a moot point.

Al Aska

He can not do that.... He will not be a Sir anymore... lol

MCDUDU

Hey Man, let what go? Sounds to me you're the one that needs to let it go, whatever "it" is you're talking about.

I have never worked for, tried and got turned down or ever aspired to be employed at Virgin America its subsidiraries or assigns.

Now back to the issue at hand. One can only guess when the time will come when you won't be working there. I say sooner rather than later but thats just looking at the present economic conditions and the forecast of those conditions continuing into the distant future.

All the best to you Barney!

Green Banana

tick ... tock ....

ExFokkerFlyer

Hey Green Naner... TWO websites that you are openly wishing for other to lose their jobs? In this economy? Do you put razor blades in candy on Halloween too?

Dude, just get a life... and if per chance you do have one, just live it and let others live theirs. Unbelievable.