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 11.19.14 ** HD iPad-Friendly -- Airborne 11.19.14 **
** Airborne 11.17.14 ** HD iPad-Friendly -- Airborne 11.17.14 **
** Airborne 11.14.14 ** HD iPad-Friendly -- Airborne 11.14.14 **

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."

FMI: www.alaskairlines.com, www.virginamerica.com

Advertisement

More News

Barnstorming: FAA -- The Original EPA

The Governmental Death By 1000 Cuts, Continues... Guest Editorial by Rich Davidson, Grass Cutting Administrator At Lee Bottom Flying Field/API Advisory Board Did you feel that Aero>[...]

Financier Says Heathrow Expansion Easier To Fund Than Gatwick

Ian Hannam Backs Heathrow Hub U.K. financier Ian Hannam, one of the backers of Heathrow Hub, has said that Gatwick would find it much more difficult to fund expansion than either o>[...]

AD: Boeing Company

AD NUMBER: 2014-23-04 PRODUCT: Certain The Boeing Company Model 777-200LR, -300, -300ER, and 777F series airplanes.>[...]

AD: Bombardier, Inc. Airplanes

AD NUMBER: 2014-23-06 PRODUCT: Certain Bombardier, Inc. Model CL-600-2B19 (Regional Jet Series 100 & 440) airplanes.>[...]

ANN's Daily Aero-Linx (11.21.14)

Alaska Airman's Association The Alaska Airmen's Association is the largest state general aviation group in Alaska. It is a non-profit 501 (c) 3 organization whose sole purpose is t>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

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