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http://aviationblog.dallasnews.com/archives/2009/06/dot-is-looking-into-virgin-ame.html
DOT is looking into Virgin America ownership
1:06 PM Mon, Jun 08, 2009 | Permalink
Terry Maxon/Reporter Bio | E-mail | News tips The U.S. Department of Transportation is reviewing Virgin America's ownership to make sure it hasn't gone over the limits for foreign ownership and control.
In a letter to U.S. Rep. James Oberstar, DOT official Roy W. Kienitz said the department was looking into Virgin America's ownership structure:
Alaska Airlines, which competes with VA in a number of West Coast markets, had urged the government in February to review Virgin America's ownership structure, citing VA's public filings and media reports.
In a March reply, Virgin America called the media reports inaccurate, said its foreign ownership and control remained within the 25 percent limit allowed by federal law and inferred that Alaska was just making mischief:
Keep reading for the full Kienitz letter.
The Honorable James L. Obeistar
Chairman, Committee on Transportation
and Infrastructure
U. S. House of Representatives
Washington, DC 20515
Dear Mr. Chairman:
Thank you for your letter of April 2 to Secretary LaHood concerning the citizenship of Virgin America, Inc. (Virgin America). I am responding to your letter on his behalf.
All United States air carriers are required to notify the U.S. Department of Transportation (Department) when undergoing or proposing to undergo a substantial change in any area affecting their fitness, i.e., operations, management, or ownership and citizenship. Upon such notification, the Department generally commences a review of the air carrier's continuing compliance with both fitness and citizenship requirements. Earlier this year. Virgin America informed the Department of proposed transactions involving its United States shareholders. Presently, the Department is reviewing these transactions and the results of this review will inform any future action of the Department on this matter.
As you are aware, subsequent to press reports announcing Virgin America's transactions, Alaska Airlines, Inc. (Alaska), filed a petition in the docket requesting that the Department conduct a public review of Virgin America's citizenship. Several pleadings from interested parties were filed in response to Alaska's petition. Since this matter is contested, I am unable to comment on its merits. I can, however, assure you that the Department is reviewing the information provided by the interested parties.
As is our normal practice, I am placing a copy of your letter and this response in Docket DOT-OST-2009-0037 as a contact outside the record of this matter. I appreciate your interest in this proceeding.
Sincerely yours,
Roy W. Kienitz
DOT is looking into Virgin America ownership
1:06 PM Mon, Jun 08, 2009 | Permalink
Terry Maxon/Reporter Bio | E-mail | News tips The U.S. Department of Transportation is reviewing Virgin America's ownership to make sure it hasn't gone over the limits for foreign ownership and control.
In a letter to U.S. Rep. James Oberstar, DOT official Roy W. Kienitz said the department was looking into Virgin America's ownership structure:
"Earlier this year. Virgin America informed the Department of proposed transactions involving its United States shareholders. Presently, the Department is reviewing these transactions and the results of this review will inform any future action of the Department on this matter."
The letter from the DOT Under Secretary for Policy was dated June 2, but added to the DOT's online documents Monday.Alaska Airlines, which competes with VA in a number of West Coast markets, had urged the government in February to review Virgin America's ownership structure, citing VA's public filings and media reports.
In a March reply, Virgin America called the media reports inaccurate, said its foreign ownership and control remained within the 25 percent limit allowed by federal law and inferred that Alaska was just making mischief:
"Alaska has demonstrated that it can do no more than tell the Department what has been publicly reported in the press, but has not otherwise provided any basis to justify either its initial Petition or its subsequent Motion."
Oberstar, D-Minn., chairs the House Committee on Transportation and Infrastructure, which oversees aviation matters. In an April 2 letter to DOT Secretary Ray LaHood, Oberstar urged the government to review VA's ownership:"I find it significant that in its answers opposing these petitions, Virgin America does not deny that there has been a sale or other transfer of financial interest in the stock. If Virgin had been able to make this denial, it presumably would have done so, since this would be a strong, if not irrefutable, argument for denial of the requests for an investigation."
Approval of Virgin America's right to fly was held up because of a lengthy investigation into whether the involvement of the Virgin Group and Sir Richard Branson exceeded U.S. limits.Keep reading for the full Kienitz letter.
The Honorable James L. Obeistar
Chairman, Committee on Transportation
and Infrastructure
U. S. House of Representatives
Washington, DC 20515
Dear Mr. Chairman:
Thank you for your letter of April 2 to Secretary LaHood concerning the citizenship of Virgin America, Inc. (Virgin America). I am responding to your letter on his behalf.
All United States air carriers are required to notify the U.S. Department of Transportation (Department) when undergoing or proposing to undergo a substantial change in any area affecting their fitness, i.e., operations, management, or ownership and citizenship. Upon such notification, the Department generally commences a review of the air carrier's continuing compliance with both fitness and citizenship requirements. Earlier this year. Virgin America informed the Department of proposed transactions involving its United States shareholders. Presently, the Department is reviewing these transactions and the results of this review will inform any future action of the Department on this matter.
As you are aware, subsequent to press reports announcing Virgin America's transactions, Alaska Airlines, Inc. (Alaska), filed a petition in the docket requesting that the Department conduct a public review of Virgin America's citizenship. Several pleadings from interested parties were filed in response to Alaska's petition. Since this matter is contested, I am unable to comment on its merits. I can, however, assure you that the Department is reviewing the information provided by the interested parties.
As is our normal practice, I am placing a copy of your letter and this response in Docket DOT-OST-2009-0037 as a contact outside the record of this matter. I appreciate your interest in this proceeding.
Sincerely yours,
Roy W. Kienitz