Virgin America Lands American Airlines Exec As CEO
By Roger Yu
Virgin America, the new airline that fosters an unorthodox image, has stuck with a time-tested industry veteran for its new CEO.
The San Francisco-based start-up, which began flying Aug. 8, on Monday named C. David Cush, senior vice president of global sales at Fort Worth-based American Airlines, as its new CEO.
Cush, 47, who has a background in airline finance, operations and sales, will start his new job on Dec. 10.
Cush says he expects little difficulty in transition from the world’s largest airline to a start-up discounter. “I’m looking forward to getting into its culture — young, entrepreneurial and creative,” Cush said in an interview.
Known mostly for its leisure business, Virgin America will increasingly target business travelers, he said.
He replaces Fred Reid, a former executive at American and Delta airlines, who helped start the company with investment from Virgin Group, a British company controlled by billionaire Richard Branson.
In certifying Virgin America in the USA, the Department of Transportation required Reid to step down shortly after the carrier began flying because of its concern that he might be unduly influenced by Branson. U.S. laws strictly limit foreigners’ ownership and control of airlines.
Foreign investors can own only up to 25% of voting stock in a U.S. airline. Two U.S. private-equity investor groups now own slightly more than 75% of Virgin America, with the rest owned by Virgin Group. Virgin America says Cush has no prior personal or professional ties to Branson.
Cush says Reid, his former colleague at American, approached him a few years ago about the No.2 position at Virgin America. Initial discussions faded as Virgin America focused on getting certified and assuring U.S. regulators that it would be an American-owned company.
Cush’s name resurfaced in July as a search committee formed by Virgin America’s board and led by Chairman and former American CEO Donald Carty narrowed a list of potential CEOs.
“American (Airlines) is looked at as a training ground for airline executives,” Cush said. “I have a very broad repertoire of experience. And it also came down to … the comfort factor (Carty and Reid) had in me.”
In 20 years at American, Cush oversaw operations at its St. Louis hub and served as head of international planning. He left American briefly to be COO of Aerolineas Argentinas, the national carrier of Argentina.
Reid says he views the Transportation Department’s requirement that he step down as “an unusual ruling, to put it mildly.”
“I got over that a while ago. Why dwell on it?” he says, adding that for now he’ll work on his California apple orchard in Sonoma County. (c) Copyright 2005 USA TODAY, a division of Gannett Co. Inc.