Virgin America a no go????

[TexasGuy]

US says Virgin America can't fly as structured
Virgin America expects U.S. to deny right to fly


U.S. transport regulators said on Wednesday they had tentatively rejected Virgin America Inc.'s application to fly, saying its ownership structure did not meet a U.S. citizenship test.
The U.S. Department of Transportation said the low-cost airline, with a name made famous by British entrepreneur Richard Branson, did not meet the requirement that 75 percent of its voting interest be owned or controlled by U.S. citizens.
Virgin America said it would respond to the department on Jan. 10 and demonstrate that it will meet the ownership and control requirements.
"We remain committed to getting our wings," said Virgin America in a statement. The airline had said last week it was expecting the rejection.....

more here http://tinyurl.com/sj9xc

[sn26567]

...the requirement that 75 percent of its voting interest be owned or controlled by U.S. citizens.

American protectionnism in action!

[website-info]

no, just going by the letter of the law, here is the official papers

http://dmses.dot.gov/docimages/pdf99/434510_web.pdf

T

[sn26567]

no, just going by the letter of the law

Exactly what I mean: protectionnism organised by law.

[Zenfookpower]

no, just going by the letter of the law

Exactly what I mean: protectionnism organised by law.

What else you expect a "law" is supposed to do.. For the people , and by the people..Don't like our laws,.. tough.. then don't do business here..

[cageyjames]

Probably saving investors millions of dollars. It is WAY too easy to start an airline. Virgin America would just go bankrupt down the road anyway and cause airfares to drop putting all the other airlines in danger. I'd rather not relive the early 2000's thank you very much.

Virgin America is worthless anyway. Who in their right mind would start a LCC and put their main hub in San Francisco? I can't imagine how they'd have any on-time flights.

[David747]

I have to agree with the sentiment that this is American protectionism at its worse. Personally, I believe we should open our markets to new foreign airline companies to boost competition here at home, and it is unfortunate that federal regulators have thrown a roadblock to Virgin America, regardless of the chances it has of succeeding in the American market. I think that if Virgin America were allowed to operate in the market and they somehow go bust, it is better to see the market operate than to deny them the opportunity to compete.

[cageyjames]

And what? Kill off more airlines. Do we need another independence air?

Just because you can get funding doesn't mean it makes business sense.

This is why I'm actually against mergers in the aviation industry. You just open yourself up for virgin america.

[regi]

So you mean that the american investors who did put their money in this project are not business minded? They have no idea what they are doing?

[cageyjames]

I mean it is very easy to get funding to buy airplanes. Labor is cheap so you can run airplanes back and forth with almost no out of pocket expenses of your own.

Oh and it isn't just american investors. You don't have to be an american to buy stock in an airline.

[David747]

We don't need another independence air, but a little competition won't hurt in our industry that is overly protected by the government in so many indirect ways.

[cageyjames]

We don't need another independence air, but a little competition won't hurt in our industry that is overly protected by the government in so many indirect ways.

I can fly from Phoenix to Boston for $189. How much lower protection does one need?

[CXRules]

Well, I certainly would like better services, as almost every carriers in the U.S. are about the same--BAD!!! Losing lugages, delays, bad food (now you've to pay), bad seats, etc.

That 75% rule is really ridiculous. Most nations do protect their airlines, with a 49% cap on foreign ownership. 25% cap is too low to attract foreign investors.

[cageyjames]

Personally I don't mind foreign ownership, just that I'd rather see them invest in existing airlines and not create unneeded disasters like Virgin America.

[David747]

We don't need another independence air, but a little competition won't hurt in our industry that is overly protected by the government in so many indirect ways.

I can fly from Phoenix to Boston for $189. How much lower protection does one need?

$189? that depends on the seat or the carrier, I have seen people taking flights domestically on American Airlines that have cost them $500 or more. A little more competition will not hurt US Airways, or other American companies, the reality is, it would do this country and the airlines good to have another company like Virgin America provide more competition to LCC's or traditional carriers.

[cageyjames]

I guess if you want your Pilots making minimum wage and your flight attendants being paid Wal-Mart wages it makes sense.

Frankly I won't be surprised in a couple years if we see an airline that only has a few employees and contracts out everything. How scary will that be?

[bkonner]

...the requirement that 75 percent of its voting interest be owned or controlled by U.S. citizens.

American protectionnism in action!

Dude,

The United States has the most open economy in the world! This is a fact and cannot be disputed! Just look at the country's trade deficit with everyone! There certainly is some trade protection in the US but nothing like what exists in the EU!

Bill Konner

[sn26567]

...the requirement that 75 percent of its voting interest be owned or controlled by U.S. citizens.

The United States has the most open economy in the world!

Isn't this contradictory?

[Zenfookpower]

...the requirement that 75 percent of its voting interest be owned or controlled by U.S. citizens.

The United States has the most open economy in the world!

Isn't this contradictory?

What a comment....Just like the "drive by" media...This is indeed comparing apples with oranges...

Happy New Year

[Mercutio]

...the requirement that 75 percent of its voting interest be owned or controlled by U.S. citizens.

American protectionnism in action!

Dude,

The United States has the most open economy in the world! This is a fact and cannot be disputed! Just look at the country's trade deficit with everyone! There certainly is some trade protection in the US but nothing like what exists in the EU!

Bill Konner

The aviation industry in the UK at least is a good deal more open and competitive than in the US. Virgin Atlantic, for instance, is 49% owned by Singapore Airlines. That would not be allowed in the US. The US's Chapter 11 bankruptcy protection has kept most of America's majors artificially afloat over the last few years. By contrast their European rivals, who compete with US carriers on Trans-Atlantic routes, had to deal with the fallout from September 11th without any government assistance.