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Jul16
Is Virgin America Ready to Fly?
Is Virgin America ready for takeoff?  They finally cleared one of the last hurtles in the many along the way with the Department of Transportation, but still have one more major one to go.  The DOT said the application to begin flying is complete, signaling that federal regulators have enough information to make a ruling.  Virgin America says the ruling was a welcome sign but still has to wait for final approval from the government and no one knows when that will come or in which direction it will go. 

Opponets have until August 2nd to submit comments and then Virgin America will have until the 16th of August to respond.  Most comments will probably come from Continental Airlines, Delta Air Lines and American Airlines who have all put up considerable resistance to the new airline.  The DOT is not under a deadline to decide whether Virgin America can fly, but aviation industry experts said that if Virgin America gets its approval it could come as soon as October.

Do you think there is enough space in the airline industry or even in the US market to allow for another carrier?  Richard Branson hasn't put his money behind something that he didn't believe could survive.  He has sucessfully started other airlines in other countries.  So why not the US?  What are US airlines so afraid of? 
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The Department of Transportation last April asked Virgin America for additional information about Branson's role in the startup airline. The regulators also wanted additional information about the citizenship of certain investors; how Virgin America investors met Branson as well has his relationship with top Virgin America executives like CEO Fred Reid.

Virgin America said that while Branson has a minority stake in the airline, the company is under control of U.S. citizens, in compliance of U.S. law.

Before Virgin America can begin carrying passengers, the airline must also get approval from the Federal Aviation Administration, which will review the airline's safety and training procedures. The FAA approval process is moving forward, Virgin America officials said. The FAA process, according to aviation industry experts, likely will not be as contentious as the Department of Transportation approval process.

San Francisco BizJournal

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