U.S. DOT Denies OK to Virgin America
Posted on: Thursday, 28 December 2006, 00:00 CST
U.S. authorities Wednesday said the startup Virgin America airline could not begin operations because it is not under the actual control of U.S. citizens.
Virgin America, partly owned by British billionaire Richard Branson, would have to change its ownership, corporate structure and other agreements to be 75 percent owned and controlled by U.S. citizens before it could receive an operating certificate, the Department of Transportation said in a statement.
The low-cost airline says it is licensed to use the Virgin brand by Britain's Virgin Group, but maintains it is independent of Branson's other companies, including Virgin Atlantic.
The transportation department said Virgin America had too close a relationship with the Virgin Group.
Virgin America, based at San Francisco International Airport, said it was confident it would meet the department's requirements.
It plans to respond by Jan. 10 so that we may move forward with DOT certification, launch our airline and bring new, high-quality service and much-needed competition to the marketplace, a Virgin America spokesman said.
Source: United Press International
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