Virgin America Ownership Satisfies DOT

By Andrew Compart

Pending changes by Virgin America in its ownership structure, board membership and relationship with U.K.-based Virgin Group have convinced the U.S. Transportation Dept. that the San Francisco-based carrier will remain in compliance with federal requirements on U.S. ownership and control, even as the Virgin Group provides another $63.4 million in debt financing to the carrier.

The DOT made its ruling Friday as it dismissed petitions filed by Alaska Airlines and the Aircraft Mechanics Fraternal Association, filed in February, that asked for a public inquiry into the carrier’s ownership and control status after reports that its majority U.S. owners were getting rid of their stakes. Instead, the DOT worked out the issues in private discussions with Virgin America.

Alaska said it was disappointed that the DOT “chose to conduct this review behind closed doors.” However, it added, “We are heartened to see the Department of Transportation has required further investment by U.S. entities and other significant changes to their governance structure as a condition to the department’s conclusion that Virgin America is a U.S. citizen.”

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