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Virgin America faces objections by US airlines.

AIRLINE INDUSTRY INFORMATION-(C)1997-2006 M2 COMMUNICATIONS LTD

Virgin America is facing a deadline today (16 August) to respond to industry objections to its application for an airline licence.

The licence application was initially filed last December. After today's deadline the US Department of Transportation has up to 180 days to make a decision in the matter.

According to Reuters, US airlines such as Continental Airlines have focused on Virgin America's links to Britain's Virgin Group. The Virgin Group holds a 25% stake in the company and it also lends its brand and has given promises of funding.

US airlines claim that Virgin Group effectively controls the US-based airline and that this is a violation of the US law which restricts foreign control of domestic carriers.

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Comment:Virgin America faces objections by US airlines.
Publication:Airline Industry Information
Article Type:Brief article
Geographic Code:1USA
Date:Aug 16, 2006
Words:138
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