Is the United States government blocking the entry of a new air carrier? A leaked report last week says that the United States Department of Transportation is expected to deny the operations request by Virgin America to begin service out of San Francisco's International Airport.
"If Virgin America is not granted permission to fly out of San Francisco International it would be a huge disappointment to everyone in the Bay Area. It would mean the loss of about 1,600 jobs in the Bay Area and a total of 3,000 jobs nationwide," said Terry Nagel, mayor of Burlingame, where Virgin America is headquartered.
The government is reportedly concerned that British billionaire Sir Richard Branson, who owns 25 percent of Virgin stock, is actually in control of the airline.
Virgin America planned to operate 40-50 low cost flights out of SFO beginning in March. If they are denied operation, $24 million in state and local taxes will also be lost.
KCBS All News 740AM (San Francisco, San Jose, Oakland)
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