DoT Gives OK for Virgin America

Posted on Tuesday 20 March 2007

The Associated Press is reporting that the DoT ruled today to accept Virgin America’s application to offer commercial flights in the US based on Virgin’s revised application submitted back in January.

Virgin’s original application was denied back in December on the grounds that the ownership structure was unclear and that Branson’s Virgin Group appeared to control more than 25% of the company.

One additional stipulation from the DoT for its approval is that Fred Reid, the current Virgin America CEO, must step down from that position. The theory is that Reid is too close to Branson.

This has really been a fascinating saga. Lately I had been betting that the DoT would not approve the new application.

The AP article implies there are additional barriers still to be overcome by Virgin America, but they aren’t spelled out.


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