=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2007/01/30/financial/= f180716S02.DTL --------------------------------------------------------------------- Tuesday, January 30, 2007 (AP) Virgin America adds more clout to its board in its bid to fly By MICHAEL LIEDTKE, AP Business Writer (01-30) 18:07 PST San Francisco (AP) -- With the U.S. Department of Transportation standing in its way of taking off, fledging airline Virgin America has added one of the agency's former leaders to its board in an effort to prove it isn't beholden to foreign interests. Samuel Skinner, the Transportation Department's secretary under President George H.W. Bush in the late 1980s and early 1990s, will serve as Virgin America's vice chairman in a move announced late Tuesday. Virgin America is trying to convince aviation regulators that it complies with U.S. laws capping foreign control of a U.S. airline at 25 percent — a case that the Burlingame-based startup believes will be bolstered with an ally of the first President Bush in its corner. Besides running the Department of Transportation for nearly three years, Skinner also briefly served as Bush's chief of staff in 1992. "Sam brings a depth of knowledge and experience in transportation, and a well-known, sterling reputation for independence, integrity, and U.S. leadership in aviation issues," said Fred Reid, Virgin America's chief executive officer. The Transportation Department tentatively denied Virgin America's application to fly a month ago, primarily because of its ties to British entrepreneur Richard Branson — the billionaire who came up with the idea for a new U.S. airline that would offer travelers more comfort at a lower cost than the industry's long-established powers. Several of the major U.S. airlines, including American, Delta and Continental, have spearheaded the drive to prevent Virgin America from flying. Refusing to bow to the resistance, Virgin America earlier this month submitted a long list of concessions to the Transportation Department to allay regulators' concerns. Virgin America's proposed reforms included selling more stock to U.S. investors, eliminating one of the three board seats awarded Branson's Virgin Group and, if necessary, firing Reid because Branson hired him. The proposed airline already has raised $177 million. The Department of Transportation expected to respond to Virgin America's proposed changes in mid-March at the earliest. Most observers seem to think regulators will take much longer to decide the politically charged case after the period for public comment expires next month. Meanwhile, Virgin America is planning as if it will prevail. Besides announcing Skinner's appointment, Virgin America revealed four more cities on its proposed flight list: Washington, Los Angeles, San Diego and Las Vegas. The airline had previously announced plans to fly between San Francisco and New York's John F. Kennedy International Airport. If it wins regulatory clearance, Virgin America has pledged to fly to at least 10 U.S. cities within its first year of operation and 30 cities within its first five years in business. By then, Virgin America expects to employ about 5,000 workers. ____ On The Web: Virgin America: www.letvafly.com -------------------------------------------------------= --------------- Copyright 2007 AP