Fwd: Seeking to fly, Virgin America agrees to US DOT demands

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--- In BATN@xxxxxxxxxxxxxxx, "4/11 Redwood City Daily" <batn@...> 
wrote:

Published Wednesday, April 11, 2007, by the Redwood City Daily News

Virgin America agrees to comply with regulations
Fledgling airline trying to clear the way for federal approval

By Shaun Bishop
Daily News Staff Writer

Burlingame-based startup airline Virgin America said Tuesday it
will meet all of the conditions required by federal transportation
officials to allow it to fly out of San Francisco International
Airport.

In a filing with the U.S. Department of Transportation, the airline
said its own "far-reaching changes" and compliance with other terms
laid out by the government should assuage the department's previous
concerns about foreign ownership of the company, which has financial
backing from British billionaire Richard Branson.

Barring a reversal of the department's tentative decision last month
in favor of the airline, Virgin America hopes to gain final approval
by next month and launch its first flights between SFO and New York's
John F. Kennedy Airport sometime this summer.

The department in December blocked Virgin America's attempts to
operate discount flights out of the Bay Area, citing concerns that
the company was not in line with federal rules that require 75
percent of a company's ownership and two-thirds of its governing
board to be U.S. citizens.

A group of domestic airlines -- including Delta, American and United
-- also filed briefs urging officials to reject Virgin America's
application for interstate travel.

But last month, the department said a set of proposed changes by the
airline, including removing some members of its board of directors,
would meet the federal citizenship requirements, and gave tentative
approval to its application.

The airline did not agree with all the suggestions from federal
officials. In its filing Tuesday, it protested an order from the
transportation department to remove the airline's CEO Fred Reid,
saying he is a U.S citizen and has an extensive industry background,
but said it would reluctantly replace him if deemed necessary by the
department.

The airline's comments to the transportation department came at the
end of a 21-day comment period during which interested parties could
respond to the department's March 20 decision.

As of Tuesday afternoon, transportation department spokesman Bill
Mosely said he was not aware of any protests from any competing
airlines, despite their earlier objections, but said such filings
could be sent in electronically overnight.

"It seems a fait accompli in the industry that this is going
forward," said Virgin America spokesman Gareth Edmonson-Jones.

Numerous elected officials have spoken in favor of the airline's
effort to do business in the Bay Area, including Gov. Arnold
Schwarzenegger, Rep. Tom Lantos and Burlingame Mayor Terry Nagel.
The company says it could hire up to 3,000 employees, many of them
in the Bay Area.


E-mail Shaun Bishop at sbishop@...


[BATN: See also:

Editorial: Open Skies, Virgin America vs. US airline "protection"
http://groups.yahoo.com/group/BATN/message/34380

Editorial: Virgin America to bring benefits, boost competition
http://groups.yahoo.com/group/BATN/message/34262

New low-cost carrier flights likely to push SFO fares lower
http://groups.yahoo.com/group/BATN/message/34261

Letter: BAEF boss Randolph: "let Virgin America fly"
http://groups.yahoo.com/group/BATN/message/34226

Virgin America hopes for midsummer launch for SF-NY flight
http://groups.yahoo.com/group/BATN/message/34209 ]

--- End forwarded message ---

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