US denies Virgin America access

US authorities today denied approval for a new low-cost airline called Virgin America to start operations, saying the carrier was "not under the actual control of US citizens".

The US Department of Transportation said Virgin America would have to revise its ownership, corporate structure and other agreements to be 75 per cent owned and controlled by US citizens before it could receive an operating certificate.

The agency said it was "tentatively denying'' the request for US certification, giving the group the opportunity to appeal.

The upstart low-cost airline said has been licensed to use the Virgin brand by Britain's Virgin Group, but maintained that it is independent from the companies headed by Richard Branson who founded Virgin Atlantic, and a host of other Virgin-branded firms.

http://www.theaustralian.news.com.au/story/0,20867,20981324-1702,00.html

in the HELL is the big deal here?

I think that's the distinction, although I agree with you that it seems pretty stupid.

with flights inbetween US cities, as opposed to KLM, Lufthansa, or Virgin Atlantic, which fly exclusively from the US to other countries. International carriers are not allowed to fly domestically. That's why you'll never see an Air India fare from NY to LA, even though they may stop in both cities. The US carriers are scared s*itless of other carriers like Ryanair coming in and doing point-to-point flights for $25.

And with that comes ownership and other rules

within CONUS...perhaps you should educate yourself before you go off half-cocked

is the real reason this is happening because US airlines operate as a cartel and have a strong lobby (hence why they were bailed out frequently?)

Virgin can do so here.

United Airlines flew short-haul in Europe well into the 1990's, Delta, TWA and Pan Am also had intra-European route rights.

But that is beside the point because Virgin America is a US airline.

Um, okay. :crazy:

... supported virginity. :)

Richard Branson might as well be Tony the Tiger, It is high time some more of the worthless US legacy airlines be allowed to fry.

Sort of like The White House?

1) When Virgin America is structured in accordance with the law, they can operate in the US

2) When foreign countries change their laws to allow US carriers to operate in their countries then US carriers will do so...

.

He'd have to buy off every government in the world

If you seem to recall the Dubai ports deal, they were bargaining to operate domestic ports by means of foreign ownership.

What gives? :shrug: