Virgin America Slams Legacy Carriers

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Aug18

Virgin America Slams Legacy Carriers

Rob Willers

August 18, 2006

Know More:

Virgin America is in the news again, and it is turning into a punching match. Virgin America is slamming the legacy carriers as they contest the newest low cost carrier being called exactly that, a low cost carrier. American Airlines, Continental Airlines, Delta Air Lines and US Airways are all whining that Virgin America is going to be called a LCC.

But Virgin America CEO said that Continental Airlines was upset because they want open access to Heathrow.

"It is farfetched to argue that U.S. citizens are somehow foreign, that debt is equity or that standard provisions protecting minority investors constitute 'actual control' of a U.S. airline that is clearly managed by U.S. citizens and 75-percent owned by U.S. citizens."

"(None of the legacy carriers' comments call) into question Virgin America's sound business plan, experienced management team or technical compliance capabilities," Reid said. "Instead of focusing on actual facts that show we are an American-owned and -controlled company, they have created irrelevant 'conspiracy theories' about our application.

United Press International

The only carrier not in the group complaining is most notably United Airlines. United will probably hurt the most as their west coast hub is the focus for Virgin America's base of operations in San Francisco. Weird how things work out.

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