front9
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By Ann Keeton
Of DOW JONES NEWSWIRES January 8, 2009
U.S. regulators are expected to announce a final ruling on the controversial ownership of Virgin America as early as Friday, according to a person familiar with the situation.
The Department of Transportation has been reviewing the airline's ownership following a restructuring and allegations that it breached a law requiring 75% be controlled by U.S. citizens.
The department is expected to brief U.S. lawmakers on its findings later Friday, according to the person.
Virgin America and the Transportation Department weren't immediately available for comment. The airline, which had hoped to have a decision by the end of 2009, has maintained it meets all ownership requirements after its capital restructuring.
It's launch was delayed by more than two years as rival carriers questioned whether it met the ownership criteria. Concerns were raised again earlier this year when one of its founding investors exercised a put option.
Virgin America, which expects to move into profit this year, said it has sourced new investors that meet the cap on overseas holdings.
Alaska Air Group Inc. (ALK) has led the critics, calling for a public review of Virgin America's ownership. The airline was not immediately available for comment.
Of DOW JONES NEWSWIRES January 8, 2009
U.S. regulators are expected to announce a final ruling on the controversial ownership of Virgin America as early as Friday, according to a person familiar with the situation.
The Department of Transportation has been reviewing the airline's ownership following a restructuring and allegations that it breached a law requiring 75% be controlled by U.S. citizens.
The department is expected to brief U.S. lawmakers on its findings later Friday, according to the person.
Virgin America and the Transportation Department weren't immediately available for comment. The airline, which had hoped to have a decision by the end of 2009, has maintained it meets all ownership requirements after its capital restructuring.
It's launch was delayed by more than two years as rival carriers questioned whether it met the ownership criteria. Concerns were raised again earlier this year when one of its founding investors exercised a put option.
Virgin America, which expects to move into profit this year, said it has sourced new investors that meet the cap on overseas holdings.
Alaska Air Group Inc. (ALK) has led the critics, calling for a public review of Virgin America's ownership. The airline was not immediately available for comment.