Airline Had Hoped To Skirt Requirements

The quibbling continues between the US Department of Transportation and low-cost airline Virgin America. The DOT ruled Monday the airline must disclose financial and traffic data it sought to keep confidential, over concerns that rivals would use it to better compete with the startup airline.

The department regularly releases financial and traffic data about all major US airlines... a requirement Virgin America had hoped to avoid, by virtue of its affiliation with foreign interests. The Virgin Group, led by Sir Richard Branson, owns a 25-percent stake in the branded carrier.

That relationship with a foreign company has been a sticking point between Virgin and DOT in the past, as ANN has reported. The agency did not agree with Virgin America's contention that release of the data "will likely cause substantial harm" to the airline.

Burlingame, CA-based Virgin America earlier this year asked federal regulators not to make financial information available to the public -- or its rivals. Allowing other airlines to see its costs, revenue or pricing would "substantially harm its competitive position," Virgin America said in papers filed with the government.

That request was roundly criticized by rivals like United Airlines, American Airlines, Delta Air Lines and others. "It is fundamentally unfair for those who choose to game the system to keep their traffic and financial data from competitors," those airlines said.

The transportation department did grant Virgin America's request to keep some data confidential. For example, the DOT will not publish figures on aircraft costs, or asset depreciation.

FMI: www.dot.gov, www.virginamerica.com