According to this report in USA Today, Virgin America has received "tentative approval to fly".
Can anyone confirm this from other sources?
Nick
Can anyone confirm this from other sources?
Nick
I believe it has yes! Finally some good news for Virgin America
Lifted from A'net
The conditions include:
"**Requiring that the disinterested directors on the Virgin America board (that is, U.S. citizens) separately approve of the appointment or replacement of the trustee of Virgin GroupÕs shareholdings.
**Amending the voting trust agreement to require that the Trustee vote its shares proportionally to the other shareholders as to any matter that, in the opinion of the U.S. investor directors, creates a conflict of interest between the interests of Virgin Group and that of U.S. shareholders.
**Modifying the Virgin Trademark License Agreement to remove certain geographic and operational restrictions on Virgin America and the requirement that it pay royalties to the Virgin Group should the applicant conduct operations independent of the Virgin name.
**Confirming that the current CEO has terminated employment with the applicant within 90 days of the certificate being issued and any follow-on consultancy within 180 days following termination of employment.
**Submitting copies of all executed and signed agreements prior to certification.
**Reporting to the Department in advance if any additional loans (or other debt funding) are to be provided to it from the Virgin Group."
link
The conditions include:
"**Requiring that the disinterested directors on the Virgin America board (that is, U.S. citizens) separately approve of the appointment or replacement of the trustee of Virgin GroupÕs shareholdings.
**Amending the voting trust agreement to require that the Trustee vote its shares proportionally to the other shareholders as to any matter that, in the opinion of the U.S. investor directors, creates a conflict of interest between the interests of Virgin Group and that of U.S. shareholders.
**Modifying the Virgin Trademark License Agreement to remove certain geographic and operational restrictions on Virgin America and the requirement that it pay royalties to the Virgin Group should the applicant conduct operations independent of the Virgin name.
**Confirming that the current CEO has terminated employment with the applicant within 90 days of the certificate being issued and any follow-on consultancy within 180 days following termination of employment.
**Submitting copies of all executed and signed agreements prior to certification.
**Reporting to the Department in advance if any additional loans (or other debt funding) are to be provided to it from the Virgin Group."
link
Originally posted by Scrooge
Lifted from A'net
The conditions include:
**Confirming that the current CEO has terminated employment with the applicant within 90 days of the certificate being issued and any follow-on consultancy within 180 days following termination of employment.
I am obviously missing something in amongst this great news - Why does Fred Reid have to go??
The exact reason given in the DOT filing is;
Basically, they think Fred is in Richard's pocket.
Replacing its current Chief Executive Officer, who the record suggested might be considered "beholden" to foriegn interests under DOT precedent, with a new official presumably having no prior affiliation with the non-U.S. investors of Virgin America.
Basically, they think Fred is in Richard's pocket.
'**Modifying the Virgin Trademark License Agreement to remove certain geographic and operational restrictions on Virgin America and the requirement that it pay royalties to the Virgin Group should the applicant conduct operations independent of the Virgin name.'
Interesting having seen the sheer size of the licence agreement - I always just viewed as a tax efficiency.
Thanks,
Richard
Interesting having seen the sheer size of the licence agreement - I always just viewed as a tax efficiency.
Thanks,
Richard
Originally posted by David
Sitting in the Delta room at MCO at the moment, but for some reason letvafly.com is showing a blank white page or has delta blocked it on their network ?
Blank for me also - Shame on you for thinking that Delta had blocked the site...[:p]
Originally posted by tallprawnOriginally posted by David
Sitting in the Delta room at MCO at the moment, but for some reason letvafly.com is showing a blank white page or has delta blocked it on their network ?
Blank for me also - Shame on you for thinking that Delta had blocked the site...[:p]
Little old me ....
Maybe its getting its new booking system uploaded - or Fred's throw a wobbly. [:w]
Originally posted by Bazz
Talk about free trade!? Do DOT want a seat on the board as well? Still I guess progress is progress. BTW the letvafly.com site is up again.
Er, they've already got that
Originally posted by Bazz
From the Press Release, they could be flying as early as next month! Practically this may not be possible but at least now we know it WILL happen. [y]
What about this 21 day appeal process? Surely this isn't a cast iron certainty until this period passes.
I cannot see an angle that any other the current major US carriers can use to change the DOT's mind now though.
Virgin America have stated they're now planning a mid-summer launch. The 21 day period is purely the obligatory time the DOT have to allow for objections before issuing the certificate, which means that VA *could* have a certificate to fly in their hands by 11th April - and once they have the certificate, they could (in theory) be flying. However, it sounds like they'll wait an plan a big razzamatazz launch in July / August.
Personally I hope it's July, since I'll be in Edinburgh in August, and I'd dearly love to go over for the first flight!
Pete
Personally I hope it's July, since I'll be in Edinburgh in August, and I'd dearly love to go over for the first flight!
Pete
all that i can say is wow. i am so glad that the have finally been given permission to fly. i can just see the US carriers now, they will be very nervous at the decision but they cant do much now. i found this link from google.
i cant wait to get to SFO in october and see al the VX a/c hanging around the place. Go VIRGIN AMERICA
After removing Mr. Reid as CEO, which the agency acknowledged would pose challenges for the new airline, Virgin America would be allowed to retain him as a consultant for six months.so hes not out of the picture just yet.
i cant wait to get to SFO in october and see al the VX a/c hanging around the place. Go VIRGIN AMERICA
I would think a 4th of July startup would be convenient and would perhaps show VX's patriotism.
About the other stuff: according to the news I've read the DOT rarely goes back on its word after it issues a "tentative approval", then again the rejection in December was also called "tentative" so who knows.
And about the limitations of Virgin: I actually think that could be a good thing. It would allow VX to pursue both domestic and international routes that Virgin Group wouldn't have let them pursue had it had more control over the company. I just hope Virgin doesn't pull out completely and leave us with just "America".
About the other stuff: according to the news I've read the DOT rarely goes back on its word after it issues a "tentative approval", then again the rejection in December was also called "tentative" so who knows.
And about the limitations of Virgin: I actually think that could be a good thing. It would allow VX to pursue both domestic and international routes that Virgin Group wouldn't have let them pursue had it had more control over the company. I just hope Virgin doesn't pull out completely and leave us with just "America".
Have to say, while I'm please for Virgin America, it REALLY does demonstrate to me the pathetic nature of the US system, especially bearing in mind the country's claims to be a "capitalist economy".
As a result, I feel sad (yet grateful) for Fred Reid's sacrifice as a result of the decision.
As a result, I feel sad (yet grateful) for Fred Reid's sacrifice as a result of the decision.
Have to agree with you, Paul. The protectionism has really come to a head since the latest consolidation in the industry was set off by 9/11.
The Fred Reid departure is appalling and any excuse the government gives will be seen as nonsense. Obviously VX knew that he was an issue, however; otherwise, why would they have offered to let him go? Guess we'll have to await Fred Reid's "tell all", but in the meantime ... GO VIRGIN AMERICA!
Chuck-
PS: Perhaps time to begin planning a V-Flyer Virgin America event?
The Fred Reid departure is appalling and any excuse the government gives will be seen as nonsense. Obviously VX knew that he was an issue, however; otherwise, why would they have offered to let him go? Guess we'll have to await Fred Reid's "tell all", but in the meantime ... GO VIRGIN AMERICA!
Chuck-
PS: Perhaps time to begin planning a V-Flyer Virgin America event?
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