http://www.btnonline.com/businesstravelnews/headlines/article_display.jsp?vnu_content_id=1003019013 AUGUST 17, 2006 -- Low-cost upstart Virgin America today urged the U.S. Department of Transportation to move forward in processing its application to begin operations, while lashing out at legacy carriers that have pressured DOT to halt the carrier's launch. American Airlines, Continental Airlines, Delta Air Lines and US Airways are leading a charge against the carrier's application, challenging its status as a U.S.-owned and -controlled airline. In an objection filed this month, Continental said the carrier is controlled by U.K.-based Virgin Group and does not comply with ownership requirements mandated by U.S. authorities. "Virgin America is a foreign funded, owned and controlled would-be airline masquerading as a U.S. airline applicant," Continental said. This week, the Bush administration also delayed the passage of new rules that would allow foreign owners greater involvement in U.S. airline operations and advance Open Skies talks with the European Union. However, asserting its ownership by U.S. citizens and abidance with U.S. law, Virgin America today reiterated that its application "is not predicated on any Departmental effort to formally relax via rulemaking its existing airline ownership rules." "It is farfetched to argue that U.S. citizens are somehow foreign, that debt is equity, or that standard provisions protecting minority investors constitute 'actual control' of a U.S. airline that is clearly managed by U.S. citizens and 75 percent owned by U.S. citizens," said Virgin America CEO Fred Reid. The carrier late last year filed with DOT an application for certification (BTNonline, Dec. 8, 2005). Former AMR chief Don Carty, who earlier this year was appointed to chair Virgin America, told BTN that the carrier was on track to take flight this fall (BTN, March 6). However, the carrier still is grounded on the tarmac as it awaits DOT approval as well as certification from the Federal Aviation Administration. Virgin America in its DOT filing this month said it has 34 new narrow-body aircraft on order and is exploring long-haul routes from its headquarters in San Francisco, as well as from Los Angeles and New York. Virgin promises lower fares in competitive markets "at a time when fares are high, planes are full and oversold, service is poor and global restrictions on access to capital and markets are breaking down," the carrier said in documents filed with DOT. --------------------------------- Get your email and more, right on the new Yahoo.com