Airlines, union want DOT to suspend Virgin certification

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--- In BATN@xxxxxxxxxxxxxxx, "12/23 Peninsula Examiner" <batn@xxxx> 
wrote:

Published Friday, December 23, 2005, in the Peninsula Examiner

Airlines, union want DOT to suspend Virgin certification
Complainants say ownership of start up unclear

By Neil H. Dempsey

Three national carriers and one of the world's largest pilots union
petitioned the government this week to suspend certification
proceedings for Virgin America and investigate how much control
Richard Branson and his Virgin Group will exercise over the startup
carrier.

Continental, Delta and American Airlines, all of which fly from SFO,
have filed requests with the Department of Transportation that the
agency require Virgin to submit more information regarding its
ownership.  The Allied Pilots Association and the Air Line Pilot
Association, which represent 63,000 and 11,500 members respectively,
have written in favor of Continental, which filed the original 
motion.

Since federal law prohibits an airline from being owned by a foreign
citizen, 75 percent of Virgin America's voting interest must be
domestically controlled and two-thirds of the company's board of
directors must be American citizens.  Virgin claims to have met that
requirement.

Virgin's certification is tied into an ongoing debate about an open
skies agreement between the U.S. and the European Union that could
involve the relaxing of foreign-ownership laws.  Continental and ALPA
have previously criticized easing those restrictions.

In its motion, Continental wrote that Branson and Virgin Atlantic
developed the Virgin American concept, decided which aircraft it 
would
use, where it would locate its headquarters and who would be selected
as managers.

"Yet, Virgin America now claims that the company went through a
magical transformation in November by unidentified investors who may
have undisclosed relationships with Mr. Branson, Virgin Atlantic and
other Virgin Group entities," the motion reads.

Continental requested proc-eedings be halted until Virgin offers up
all documents associated with the startup's use of the Virgin logo,
its purchase of planes, the identities of its investors and what
involvement, if any, Branson has in firms investing in the company.

Virgin America representative Stacy Geagan said the complaints of the
"potential competitors" were par for the course.  "It's just 
basically
the process unfolding," she said.  "We're puzzled by the idea that
some airlines want to stop the process."

Though Virgin has said it could be operational by next summer, there
is no deadline by which the DOT must rule on the company's
certification request.

Dozens of local individuals and organizations have filed letters of
support for Virgin America to the DOT, including SFO, which reported
the airport needs the startup in part because only 15 percent of the
airport's current commercial aviation traffic is considered low-cost,
while the national average is about 30 percent.

The public comment period for the Virgin's certification request will
last until Dec. 29.


E-mail: ndempsey@xxxx

--- End forwarded message ---

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