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 Unlimited -- Recent Daily Episodes

Episode Date






Airborne On ANN

Airborne 11.30.15

Airborne 11.24.15

Airborne 11.25.15

Airborne 11.19.15

Airborne 11.20.15

Airborne Hi-Def On YouTube

Airborne 11.30.15

Airborne 11.24.15

Airborne 11.25.15

Airborne 11.19.15

Airborne 11.20.15

EAA/ANN AirVenture Innovation Preview

AIP-#1 Vimeo

AIP-#2 Vimeo

AIP-Part 1 YouTube

AIP-Part 2 YouTube

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."



More News

Airborne 11.30.15: Rutan SkiGull, Old Rhinebeck Aerodrome, NASA-Virgin Galactic

Also: Tecnam P2012, Great Lakes Biplane, USAF X-56A, New IFR Training System, 'Lost In Space' Returns, Laser Strikes, ADS-B Seminar ANN Airborne Link: /index.cfm?do=video.playVideo>[...]

ANN's Daily Aero-Linx (12.01.15)

Legal Ramifications Of The FAA's UAV Registration Program An analysis of the FAA's UAV Registration Task Force compiled by Jonathan Rupprecht of Rupprecht Law, P.A. Rupprecht write>[...]

ANN's Daily Aero-Term (12.01.15): Glideslope Intercept Altitude

The published minimum altitude to intercept the glideslope in the intermediate segment of an instrument approach.>[...]

Aero-News: Quote Of The Day (12.01.15)

“Economic and political events over the last year have impacted some of the fundamentals for growth. As a result, we expect some 400 million fewer people to be traveling in 2>[...]

ANN FAQ: What Does The API Mean To You

Engaging The Aviation World's Pivotal Organizations, Interests And Viewpoints The Airborne Partnership Initiative, we call it the API, is a plan developed by ANN CEO and Editor-In->[...]

blog comments powered by Disqus





© 2007 - 2015 Web Development & Design by Pauli Systems, LC