--- In BATN@xxxxxxxxxxxxxxx, "4/11 SF Examiner" <batn@xxxx> wrote: Published Monday, April 11, 2005, in the San Francisco Examiner Virgin America's launch date uncertain Airline finalizing ownership arrangements By Mary F. Albert <malbert@xxxx> Staff Writer S.F. AIRPORT -- Virgin America's launch date at San Francisco International Airport remains uncertain, and industry experts say the airline's attempt at a U.S.-based startup may "die a quiet death." In 2003, Virgin executive Todd Pawlowski projected that the airline would begin flying in late 2004. Virgin America is a new low-fare airline being developed by British billionaire Richard Branson, who fathered Virgin Group and Virgin Atlantic airlines. But two years later, the airline is still working out ownership arrangements. For this reason, airline spokeswoman Stacy Geagan was tight-lipped about when the airline will lift off. "We are in a quiet period," said Geagan. "I cannot comment on anything regarding the equity process." However, a source close to the airline said the Virgin-branded airline is continuing to expand its team of experts who will eventually prepare the required Department of Transportation and Federal Aviation Administration applications once ownership arrangements are finalized. The source also said that the airline has increased the number of its Burlingame-based employees to 17 and still plans on employing 1,500 to 2,000 Bay Area residents. But how long it will take to start hiring remains uncertain. Beginning any new airline is a difficult, lengthy process, said aviation industry expert Michael Boyd of the Boyd Group Inc. In this economic climate, it is "critically hard" to find investors, he said, especially at San Francisco International Airport, where airport fees are high and the market is not underserved. Even after securing funds, the airline has to go through an exhaustive application process. "First they have to get the authority to apply from the DOT, which makes sure this looks like a legitimate company," said FAA spokesman Donn Walker. "Then they come to us. And they can't get a certificate until they have shown us their operating plan and we are convinced they can operate an airline safely. "It is different for every airline," he added. "Every airline has different needs and is a different size." For all these reasons, "[Virgin America] would be lucky if they could do it in 15 to 18 months" if at all, said Boyd, who is not optimistic that the startup will ever take off despite the backing of Branson and the airline's cadre of experienced executives, such as former Delta Airlines president Fred Reid. "I think it might die a quiet death," he said. If and when the startup takes off, SFO will be ready to welcome the airline into Terminal 2, said airport spokesman Michael McCarron. But the airport is not assuming the startup will actually happen. "Our capital plan is based on what we have now, not what we might get," he said. [BATN: See also: Virgin America low-cost airline may not fly until 2006 http://groups.yahoo.com/group/BATN/message/22723 Virgin budget airline may not launch before 2006 http://groups.yahoo.com/group/BATN/message/22428 SFO drawing new low-cost airlines http://groups.yahoo.com/group/BATN/message/21058 Virgin America plans to hire 1,600 for SFO hub http://groups.yahoo.com/group/BATN/message/19249 Will new Virgin America discount airline fly? http://groups.yahoo.com/group/BATN/message/19192 Virgin America to buy Airbus planes, hire 1,500 locals http://groups.yahoo.com/group/BATN/message/18801 ] --- End forwarded message ---