--- In BATN@xxxxxxxxxxxxxxx, "10/26 SF Examiner" <batn@xxxx> wrote: Published Wednesday, October 26, 2005, in the San Francisco Examiner Investor talks slow SFO arrival of Virgin America Low-cost carrier would have local headquarters By Kate Williamson Business leaders and San Francisco International Airport officials remain hopeful that a new airline projected to bring millions in revenue and more than a thousand jobs will be headquartered here -- despite investor negotiations that have stalled the airline's debut. Virgin America, part of the Virgin brand of companies started and headed by Sir Richard Branson, announced in June 2004 that the Peninsula would be home to the new low-cost carrier. That announcement came after the region made a significant bid to woo the new firm with an intense marketing campaign and a heavy incentive package, including an estimated $8 million in job-training reimbursements. But there has been little word about getting the company off the ground since that time, beyond a 2004 announcement that the company ordered planes from Airbus. The company had initially planned to start flights in 2005. Virgin and its would-be United States investors have locked horns in negotiations, according to a source familiar with the talks. According to U.S. law, a foreign entity -- such as Branson, a citizen of the United Kingdom -- is forbidden from owning more than 49 percent of the equity of a domestic airline, and therefore requires U.S. investors. That puts any such investors in a strong negotiating position. Virgin officials, according to the source, have negotiated with several different sets of potential partners and feel they can wait for the right deal. Company spokeswoman Stacy Geagan said the firm was in a "quiet period" due to the ongoing talks and declined to comment. SFO stands to gain "millions" every year in rent and landing fees if Virgin America makes its home here, airport spokesman Mike McCarron said. In the past, Virgin officials estimated the company would bring more than 1,500 airline jobs to the area. McCarron still believes the firm might become a reality, he added, particularly because Virgin America has located around 40 workers in a temporary office in Burlingame. Some have purchased homes, he and others said. On the careers portion of the Virgin America Web site, last updated Oct. 11, the company states it is currently hiring for positions ranging from flight operations dispatchers to junior accountants. "As far as I know, everything is moving forward," said Deberah Bringelson, president of SAMCEDA, a Peninsula business organization that lobbied hard for Virgin to be located near San Francisco. She said she spoke to company executives last week. "It's a complicated deal because of the foreign ownership rules. And of course, the price of fuel has gone up dramatically." E-mail: kwilliamson@xxxx --- End forwarded message ---