No Green Card Necessary For Virgin America | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne/NBAA2014 10.21.14 ** HD iPad-Friendly -- Airborne/NBAA2014 10.21.14 **
** Airborne/NBAA2014 10.20.14 ** HD iPad-Friendly -- Airborne/NBAA2014 10.20.14 **
** Airborne 10.17.14 ** HD iPad-Friendly -- Airborne 10.17.14 **

Tue, Jan 12, 2010

No Green Card Necessary For Virgin America

Airline Remains A 'U.S. Citizen', DOT Finds

The DOT announced last week that after conducting a thorough review it has found that Virgin America remains a U.S. citizen and remains under the actual control of U.S. citizens.  Under U.S. law, only airlines that meet the standards for U.S. citizenship may hold authority to operate as a U.S. airline.

DOT originally certified the airline's citizenship status in August 2007.  The air carrier later notified the Department of a significant potential shift in its shareholder makeup. As a result, DOT launched a review into whether the air carrier would continue to meet U.S. citizen requirements.

To meet the necessary standards, at least 75 percent of an air carrier's voting stock must be owned or controlled by U.S. citizens, the president and at least two-thirds of the board of directors and managing officers must be U.S. citizens, and the air carrier must be under the actual control of U.S. citizens. DOT examines a variety of factors to determine "actual control" based on the totality of circumstances in each case.

Following discussions between DOT and the air carrier, Virgin America agreed to make a number of changes to ensure that the air carrier would remain under the ownership and actual control of U.S. citizens. These changes include, among other things, provisions to ensure that new investments of capital from entities other than the Virgin Group - a collection of the United Kingdom companies and/or citizens that own 25 percent of the air carrier's stock - can and will be obtained. Virgin America also will add an additional U.S. citizen to its board, resulting in seven U.S. citizen investor designees as voting members on the nine-member board.

As part of the proposed transaction, Virgin America will obtain an additional $68.4 million in unsecured debt from its shareholders. This facility will further improve the liquidity of the company, positioning it for additional growth in 2010 and beyond.

"Today is a great day for airline competition, for our traveling guests and for our teammates," said Virgin America President and CEO David Cush in a news release following the announcement. "We're extremely pleased with the Department of Transportation's announcement. With this behind us, we intend to focus on what we do best: injecting new competition into markets as we grow, creating new jobs and delivering an unrivalled guest experience."

DOT also dismissed petitions by Alaska Airlines and the Aircraft Mechanics Fraternal Association for a public inquiry into Virgin America's citizenship.

FMI: www.regulations.gov

Advertisement

More News

Game-Changing NBAA2014 Sponsor Mid-Continent Instruments and Avionics!

Innovation Brings Safe, Certified, Nanophosphate® Lithium Batteries To New Business Aircraft True Blue Power is the first company in the world to achieve FAA TSO and EASA ETSO >[...]

Airborne at NBAA--10.21.14: NBAA2014 Opens, Eclipse Update, FJ44 TBO Increase

Also: Shuster/Hart Address NBAA, Gogo Means Business, BBJ Maxes Out, Hartzell Pulls Its Weight The NBAA Opening General Session featured two well-known names from Washington. Repre>[...]

Airborne at NBAA--10.20.14: HondaJet, Honeywell Forecast, Gulfstream's G500/G600

Also: Garmin's ADS-B For BizAv, R44s For Jordan, Textron Aviation, Hartzell Props, Clarity Aloft Pro Plus At a news conference early Monday at the 2014 NBAA convention, HondaJet sa>[...]

Airborne at NBAA--10.21.14: NBAA2014 Opens, Eclipse Update, FJ44 TBO Increase

Also: Shuster/Hart Address NBAA, Gogo Means Business, BBJ Maxes Out, Hartzell Pulls Its Weight The NBAA Opening General Session featured two well-known names from Washington. Repre>[...]

ANN's Daily Aero-Linx (10.22.14)

Airport Operators Association - U.K. Founded in 1934, the Airport Operators Association (AOA) is the national voice of UK airports.>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

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