Thu, Feb 12, 2009
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
Aero Linx: International Business Aviation Council Ltd IBAC promotes the growth of business aviation, benefiting all sectors of the industry and all regions of the world. As a non->[...]
"During the annual inspection of the B-24 “Diamond Lil” this off-season, we made the determination that 'Lil' needs some new feathers. Due to weathering, the cloth-cove>[...]
Also: Bushcat Woes, Hummingbird 300 SL 4-Seat Heli Kit, Carbon Cub UL The newest Junkers is a faithful recreation that mates a 7-cylinder Verner radial engine to the airframe offer>[...]
Also: Seaplane Pilots Association, Rotax 916’s First Year, Gene Conrad After a decade and a half of struggling with the FAA and other aero-politics, G100UL is in production a>[...]
Also: Martha King Scholarship, Montaer Grows, Textron Updates Pistons, FlySto The FAA is hiring thousands of air traffic controllers, but the window to apply will only be open for >[...]