Alaska Airlines Wants DOT Probe Of Virgin America Ownership | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne 07.23.14--CLICK HERE! ** HD iPad-Friendly Version--Airborne 07.23.14 **
** Airborne 07.21.14--CLICK HERE! ** HD iPad-Friendly Version--Airborne 07.21.14 **
** Airborne 07.18.14--CLICK HERE! ** HD iPad-Friendly Version--Airborne 07.18.14 **

Thu, Feb 12, 2009

Alaska Airlines Wants DOT Probe Of Virgin America Ownership

Wants 'Assurance' Carrier Is Still US Majority-Owned

When small companies find themselves up against stiff competition, they often work harder and increase ad budgets. When big companies do battle, sometimes it's easier just to distract your competitor and cost him money by convincing government regulators he needs investigating.

Privately-held Virgin Airlines made an auspcious debut in 2007, and has been slowly gaining ground against its more established competitors. The airline's load factor was at 81.4 percent and rising in last year's third quarter, indicating its increasing popularity... though the airline also lost a rather humbling $175.4 million, with some routes costing twice or more what Virgin makes on fares and ancillary charges.

Now, the Associated Press reports Alaska Airlines -- which goes head-to-head with Virgin America in Seattle, San Francisco and Los Angeles -- recently asked the US Department of Transportation to reexamine whether the ownership structure of its new competitor meets legal requirements for 75 percent ownership by US stockholders.

Alaska says recent media reports bring the matter into question. Keith Loveless, general counsel for Alaska Airlines, says "Only through a careful and ongoing review of Virgin America's recent actions conducted on the public record can the DOT and public be assured that Virgin will remain a US citizen."

Virgin America was forced to make organizational changes, and even purge execs considered too close to Sir Richard Branson, before the DOT would issue its operating certificate. The company says nothing has changed since, and calls Alaska's petition, "meritless."

"Should our ownership structure change in the future, we will of course notify the DOT in advance, so they can confirm our continuing compliance."

FMI: www.alaskairlines.com, www.virginamerica.com

Advertisement

More News

FAA Extends NOTAM For Ben Gurion International Airport

Adds 24 HoursTo Ban On US Flights To Tel Aviv The FAA has issued another Notice to Airmen (NOTAM) informing U.S. airlines that Tuesday's NOTAM flight remains in effect for Israel's>[...]

Airborne 07.23.14: Garmin's 7 Inch Touch, Equusearch v FAA, Andreini Family Sues

Also: GA Investment, Bud and Ross Granley, C-9 Farewell, Jepp FlightDeck, How To Find ANN At Oshkosh Garmin’s “Team X” is dedicated to experimental aircraft avion>[...]

ANN's Daily Aero-Linx (07.24.14)

Abandoned & Little Known Airfields Obviously the author's labor of love, "Abandoned & Little Known Airfields" is a listing by state of airstrips either off the beaten path,>[...]

ANN's Daily Aero-Term (07.24.14): Peak Gust

The highest instantaneous wind speed observed or recorded.>[...]

Aero-News: Quote Of The Day (07.24.14)

"Participation at the Oshkosh airshow has become a staple for NTSB investigators and staff.” Source: NTSB Acting Chairman Christopher A. Hart.>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC