Virgin America chief executive officer Fred Reid reportedly said that rival airlines like Continental Airlines Inc. have submitted numerous objections to the US Department of Transportation about Virgin America’s application for flight certification. Those objections have bogged down the review process, he told media.
Last month, Virgin America had filed a motion to stop yet another attempt by Continental Airlines to delay the Department of Transportation (DOT) from processing its application to start a new US domestic airline.
Reid also said: “We have a minority investor with 25-percent rights of voting on the board of directors, US. investors with 75-percent votes, U.S. management and a U.S. chairman, a US CEO. That’s all according to the law, so you know, friendly investment from a friendly country is really good for America.”
According to sanfrancisco.bizjournals.com, Reid said, “We believe the truth will prevail and we'll get certified,” allowing Virgin America to fly by the end of 2006 or early 2007.
Reid, as per the same report, provided a few details of the kind of service the airline expects to provide. Virgin America will give customers information on when planes are on time and when they are not, he said. Tickets will cost 30 to 50 percent less than competing airlines and planes will provide several entertainment options, including films, video games and television. Virgin America will charge for food, he said. “If you want to bring a Big Mac on board, go for it,” Reid reportedly said.
ABC7 aviation analyst Ron Wilson believes opponents are trying to stifle competition, according to abclocal.go.com. Ron Wilson, ABC7 aviation consultant: “When other airlines come in, especially low-fare carriers, and start the competitive nature of the business and start cutting fares and that sort of thing, then other airlines have to meet that cost, and they don't like that. They’d rather make a little more money.”
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