SAN FRANCISCO (AP) -- Virgin America Inc. said Thursday it submitted an application for certification from the Department of Transportation after receiving $177.3 million in funding from an investor group that will assume majority ownership of the startup low-fare carrier.
The financing was led by a partnership of Black Canyon Capital LLC and Cyrus Capital Partners LP. Sir Richard Branson's Virgin Group will own a minority stake in the airline.
Mark Lanigan, a managing director at Black Canyon Capital, has been named chairman of Virgin America, while Fred Reid, former head of Delta Air Lines Inc., will be chief executive of the carrier.
Virgin America said it will combine its company headquarters and operations in San Francisco, instead of locating headquarters in New York and operations in San Francisco as previously announced. The change will lower overhead costs, it said. With its funding complete, Virgin America said it will pursue its strategy of launching domestic U.S. scheduled airline service utilizing new Airbus A320 family aircraft in 2006.
The financing was led by a partnership of Black Canyon Capital LLC and Cyrus Capital Partners LP. Sir Richard Branson's Virgin Group will own a minority stake in the airline.
Mark Lanigan, a managing director at Black Canyon Capital, has been named chairman of Virgin America, while Fred Reid, former head of Delta Air Lines Inc., will be chief executive of the carrier.
Virgin America said it will combine its company headquarters and operations in San Francisco, instead of locating headquarters in New York and operations in San Francisco as previously announced. The change will lower overhead costs, it said. With its funding complete, Virgin America said it will pursue its strategy of launching domestic U.S. scheduled airline service utilizing new Airbus A320 family aircraft in 2006.