News

Virgin America close to US agreement
21 March 2007

A major new airline may be about to take to the skies in the US with the announcement that Virgin America has received a vote of support.

Following a consultation, the US department of transportation has decided to tentatively approve the firm's request to start a new airline.

That approval comes with conditions however, with Virgin America having to ensure that it is owned and controlled by US citizens and can operate as a domestic airline.

'We worked very hard to address the department's initial concerns, and are pleased that they have recognised our extensive work and good faith commitment to meet and exceed those requirements,' commented Virgin America's chief executive officer Fred Reid.

'We plan to meet with our shareholders immediately to address the department's proposed conditions.'

Virgin America hopes to be fully operational by mid-summer with plans to launch from San Francisco to New York's John F Kennedy airport.

There are also plans for further routes to Los Angeles, San Diego, Las Vegas and Washington DC.

The conditional approval from the department of transportation is being seen as a 'giant step' for Virgin America.

© Adfero Ltd


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