Virgin America Skirting Ownership Rules To Survive !!

clickclickboom

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Lets face it ,,,, Virgin America is having a bad week. First News that Black Canyon and Cyrus may pull their $150,000,000 hits the news then just yesterday the DOT denies their appeal to hide their numbers from competitor and public view. ( The numbers should be available tomorrow 1/30/09)

The US Ownership requirement was and is the poison pill for VA because they needed domestic investment to start operations but the investment funds had a stipulation that with notice the money could be recalled. If it has in fact been recalled we do not yet know but based on the media reports of VA hiring a specialist to find investors it doesnt look good.

All of this is just the icing on the cake because the new insider news is that Bransen is buying large blocks of tickets on flights to improve the liquidity and financial performance of the company. This is a loophole that Bransen can use to bypass the ownership limits because afterall how can anybody say who can and can not buy tickets.

Anyone else hear of this last ditch effort?
 

front9

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Wow what an ass. To lick your chops at the demise of others, for shame. Too bad your arrogance will be your demise.
 
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goodgig

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So can he then give the tickets away, or do the planes fly light?
 

Rez O. Lewshun

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Should VA get special rules or should they have to abide like all other airlines?
 

clickclickboom

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Wow what an ass. To lick your chops at the demise of others, for shame. Too bad your arrogance will be your demise.
2 Factual statements followed by a rumor asking for clarification. No chop licking here buffoon.

another question: If this is in fact happening ( buying blocks of tickets that never get used on purpose) Is this helping or hurting our industry as a whole? Honest question

Plus if this is being done as a loophole that skirts federal law is it ethical?
 

tzskipper

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CCB,

Why the obsession with VA?

Rez, all companies should operate under the same reporting requirements. Just a personal opinion, but since deregulation I don't see the need for any company to have to report any data, except to their respective shareholders.
 

Bavarian Chef

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Wow what an ass. To lick your chops at the demise of others, for shame. Too bad your arrogance will be your demise.
Once again, front9 meet avatar.
 

flyipilot

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I highly doubt Branson is buying ANY seats on his airline. That would almost be illicit and undermine the investment the banks put into the company. I have a few friends that fly for them and they say the flights are pretty full...(90-95%)..so, no need for Branson to buy up seats. Besides, I think he is a good enough business person to know if it will not work on its own, to pull out. He wont throw his cash into it any more than he has to.
 

front9

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Once again, front9 meet avatar.
Once again another useless post from Bavarian Chef
Thank you Chef for once again adding nothing to FI – Good Job
 

Bavarian Chef

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Once again, front9 meet avatar.
Once again another useless post from Bavarian Chef
Thank you Chef for once again adding nothing to FI – Good Job

Seriously? You can take all that time to gin up a groovy avatar and yet that's what you come back with?

BTW -- since when do I have to add anything of value to flightinfo?
 

Dizel8

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Huh?
CCB,
Rez, all companies should operate under the same reporting requirements.
The DOT sees it that way and the courts have ruled, the numbers must be released!
 

ralphcramden1

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All of this is just the icing on the cake because the new insider news is that Bransen is buying large blocks of tickets on flights to improve the liquidity and financial performance of the company. This is a loophole that Bransen can use to bypass the ownership limits because afterall how can anybody say who can and can not buy tickets.

Anyone else hear of this last ditch effort?[/quote]

clickclickboom,

Please show some proof of this highly unlikely story....
 

Ralph Cramden

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Against my better judgment I get drug into this flame fest...

Clickclick: Yes, the DOT denied the disclosure appeal. Yes, the stats will be made public in a few days. The stats have been filed all along, just not made public pending the appeal. Private companies in other industries, and private airlines in other countries do not disclose for competitive reasons. The DOT rules allowed for a non disclosure request and an appeal process, the company (along with others) used the rules to their advantage. The DOT and the investors have had access to the info all along, so all that will change is that witch in MSY will have something to talk about.

As to your "insider info" on ticket purchase manipulation, please share with the class or call the DOT if you have facts. Otherwise, your comments are a pile of manure. To say that the company is "skirting the rules" is misleading and false.

Pilotboob: Well well, the barnyard is complete, the big a$$ has arrived. In this economy I sure hope you don't wind up unemployed.
 
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hoover84

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http://www.regulations.gov/fdmspublic/component/main?main=DocumentDetail&o=090000648083eeda

This consent order concerns reporting delinquencies by Virgin America Inc. (Virgin America) that constitute violations of 49 U.S.C. § 41708 and the accounting and reporting requirements specified in 14 CFR Part 241. This order directs Virgin America to cease and desist from future violations of this statute and this regulatory provision, and assesses the carrier a compromise civil penalty of $40,000. the DOT
 
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