SFGate: Former American Airlines executive takes helm of Virgin America

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Tuesday, November 27, 2007 (SF Chronicle)
Former American Airlines executive takes helm of Virgin America
George Raine, Chronicle Staff Writer


   Virgin America, the discount carrier that recently took up residence at
San Francisco International Airport, has named an American Airlines
executive as new its chief executive officer, succeeding Fred Reid, who
was required to leave the company under the terms of the airline's
contentious federal certification process.
   C. David Cush, 47, whose last position at Fort Worth-based American
Airlines was senior vice president of global sales, was selected by the
Virgin America board of directors, which is chaired by Donald J. Carty,
the former CEO of AMR Corp., parent of American Airlines.
   In an interview from his home in Dallas, Cush said, "It would take a
unique opportunity to lure me away" from American Airlines, and he said he
found that exact situation when he read the Virgin America business plan
that vows to "put fun back in air travel."
   "Where I believe this company wants to go is to predictability and
efficiency on the ground and pleasant and fun in the air," Cush said.
"We'll keep it very focused on the consumer. That has to be the central
idea of anything the company does going forward."
   At American Airlines, Cush was responsible for all sales and distribution
activities worldwide. He also served as vice president of American's St.
Louis hub, and, before that, he was vice president of international
planning and global alliances.
   Cush also held management positions in finance, sales and marketing,
customer service and operations. In addition to his years at American
Airlines, Cush served as chief operating officer of Aerolineas Argentinas,
the national carrier of Argentina.
   Virgin America, which launched in August at SFO, is the only
California-based airline, and is headquartered in Burlingame. It has more
than 800 employees, is operating 10 airplanes and has firm orders for 31
more, in the Airbus A320 family.
   Reid, 57, the former president and chief operating officer of Delta Air
Lines, was named chief executive officer on April 4, 2004, and steered the
nascent operation through the fundraising and certification process.
   Virgin America is a U.S.-owned and controlled company, but there was a
perception of "foreign ownership" in part because the carrier licenses the
Virgin brand from British-based Virgin Group, headed by Sir Richard
Branson.
   Competitors of Virgin America, a low-cost airline, tried to derail its
certification application by challenging its claim that the Virgin Group
is a minority share investor. Foreign citizens are barred from owning more
than 25 percent of a U.S. airlines or exercising operational control.
   Virgin America was certified, but the federal government said Reid would
have to leave the company because of the original "foreign ownership"
concerns.
   Reid said he has no immediate plans. "That's a neat thing to say. I've
never been able to say that," he said. "Maybe I'll find success at
blueberry farming after all."
   He said raising capital had been difficult and that certification, with
more than 5,000 checklist items that had to be accomplished, was complex.
   "Yes, it's very nice that we are able to license the Virgin brand, but
that is a brand agreement. Everything else is sweat equity," Reid said.
"Yes, we are proud to fly the Virgin flag, but it is worth nothing unless
we perform here."
   Cush was born and raised in Shreveport, La. He received a bachelor of fi=
ne
arts degree in broadcast/film and a bachelor of science degree in
psychology from Southern Methodist University, both in 1982. He received
an master of business administration from the university a year later.
   He assumes his new position Dec. 10.

   E-mail George Raine at graine@xxxxxxxxxxxxxxxx -------------------------=
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Copyright 2007 SF Chronicle

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