Fwd: Editorial: Jobs, competition killed with "un-American" Virgin

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--- In BATN@xxxxxxxxxxxxxxx, "12/29 Los Angeles Times" <batn@...> 
wrote:

Published Friday, December 29, 2006, by the Los Angeles Times

Editorial

Virgin un-American

The low-cost U.S. airline doesn't yet qualify as American. There go 
hundreds of good jobs and low airfares.

RICHARD BRANSON may have to ditch his accent, renounce his loyalty 
to 
the British crown and drape himself in a U.S. flag. Driving a 
Mustang 
may help too. That's apparently what it will take for U.S. 
authorities
to allow Virgin America, the nascent U.S. airline that bears his 
popular brand name, to get off the ground.

It was partly Branson's British citizenship that provoked the U.S. 
Department of Transportation on Wednesday to tentatively declare 
California-based Virgin America insufficiently American to do 
business in the U.S. In addition to not being under the "actual 
control" of U.S. citizens, the department found, Virgin America also 
violates the federal ban on foreign ownership of airlines because 
noncitizens control too much of it.

Thus was illustrated, yet again, the absurdity of this nation's ban 
on the foreign ownership of U.S.-based airlines. The department said 
that because Branson recruited Chief Executive Fred Reid and 
licensed 
the airline under his Virgin brand name, Virgin America isn't under 
the actual control of U.S. citizens. Yet under any definition of 
either "citizenship" or "control," it's a patently ridiculous 
finding. Two-thirds of Virgin America's board of directors are U.S. 
citizens; so are Reid and the airline's chairman. 

But the foreign ownership ban is so ironclad that, for the federal 
government's purposes, Virgin America can be grounded because of a 
license agreement to use a British brand name.

Well before Virgin America filed its application with the 
government, 
more than a year ago, Branson and the airline publicly distanced 
themselves from each other. Now, after a year of bureaucratic 
delays, 
Virgin America has two weeks to respond to the government's 
findings. 
Enabling the decision were Continental Airlines and other carriers, 
which were eager to avoid competing with the low-cost airline and 
opposed its application. 

If it ever flies, Virgin America plans to hire thousands of 
employees -- many of them in California -- and use San Francisco 
International Airport as its hub. And there are thousands more 
potential passengers, most of them U.S. citizens, who would benefit 
from increased competition.

California's U.S. senators, Dianne Feinstein and Barbara Boxer, 
should not let the Department of Transportation's findings go 
unchallenged. The department earlier this month gave up on its 
latest 
effort to allow more foreign ownership after its proposal sparked a 
fierce protectionist backlash in Congress. With Virgin America as 
Exhibit A, Feinstein and Boxer should take the lead in showing 
Congress how counterproductive it is to have this ban on foreign 
ownership.

--- End forwarded message ---

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