Feds give Virgin's foes confidential documents

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--- In BATN@xxxxxxxxxxxxxxx, "12/27 SF Examiner" <batn@xxxx> wrote:

Published Tuesday, December 27, 2005, in the San Francisco Examiner

Feds give Virgin's foes confidential documents
Startup airline in dispute over foreign control

By Neil H. Dempsey

Confidential information filed by Virgin America with the Department
of Transportation has been released to representatives of the
half-dozen airlines and unions voicing concerns over how much control
Richard Branson and his Virgin Group might have over the startup
carrier, which hopes to gain a berth at SFO.

Continental, American and Delta airlines, as well as the Air Line
Pilots Association, the Allied Pilots Association and the
Transportation Trades Department, AFL-CIO, filed opposition to the
certification of Virgin as a carrier on the grounds it had not
satisfactorily shown it would be domestically controlled.

Under federal law, a U.S. airline's voting interest must be at least
75 percent domestically owned.

The Department of Transportation ordered Friday that confidential
documents be immediately released to the counsel and experts of
interested parties.  Confidentiality statements will be required of
those who view the documents, the DOT ordered.

After the agency rules -- as early as Thursday -- on a motion from
Continental Airlines requesting that Virgin's certification
proceedings be suspended and the startup be required to supply
additional information, the application comment period will be
extended by two weeks.

Experts have indicated Virgin America's arrival in the Bay Area could
bring thousands of jobs to the area and millions of dollars in 
revenue
to SFO.  Company representative Stacy Geagan said Monday that the
airline feels the issue of domestic ownership will be resolved by the
information released.  "We believe it's very positive," Geagan said.

Virgin America actually petitioned the agency last Thursday to 
release
the confidential information to interested parties while continuing 
to
expedite the application process.  The company simultaneously blasted
critics, calling Continental's analysis "hurried," some of it its
assertions "meritless" and asking the government to "resist
competitors' coordinated attempts to obscure the issues."

ALPA President Duane Woerth said last week that his union, which
represents 63,000 members and has filed correspondence with DOT
against Virgin America, was concerned that foreign control of a
domestic airline could strike a blow to the American work force.

He said Virgin America's arrival in the aviation industry coincides
with an ongoing debate -- spurred by a possible open-skies agreement
with the European Union -- about relaxing such ownership rules.
"Basically, Richard Branson is just caught in the middle,"  Woerth
said.

San Francisco Mayor Gavin Newsom told the DOT in a letter filed on
Dec. 23 that Virgin America "fully complies" with U.S. regulations
regarding foreign control of an airline and that the incoming carrier
would provide "a major stimulus" for the Bay Area?s economy.


E-mail: ndempsey@xxxx

--- End forwarded message ---

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