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/NBAA2014 10.20.14 ** HD iPad-Friendly -- Airborne/NBAA2014 10.20.14 **
** Airborne 10.17.14 ** HD iPad-Friendly -- Airborne 10.17.14 **
** Airborne 10.15.14 ** HD iPad-Friendly -- Airborne 10.15.14 **

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

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 10.17.14: Enstrom Delivers, Flight School Scandal, NBAA2014

Also: Rare O-46 Rebuild, Valor Unveiled, OK's Anti-Fly-In Airport, FAA Screw-Ups, The first Enstrom Model 480B-G has been delivered to Rick Boswell of New Hampshire with the Garmin>[...]

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>[...]

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 >[...]

ANN FAQ: Feel The Propwash!

Get Aero-News Delivered To Your E-Mail We know you, like many of our readers, make it a point to check out the latest news and information daily on Aero-News... but did you know th>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

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