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Department of Transportation Recognizes New U.S. Start-up Airline Virgin America
The Department of Transportation (DOT) tentatively approved Virgin America’s application to start a new U.S. airline, finding the carrier is owned and controlled by U.S. citizens and is fit to operate as a domestic airline.
The DOT Order proposes that Virgin America finalize changes already offered by the company to address concerns about its citizenship, and to satisfy certain other pre-launch conditions.
“We worked very hard to address the Department’s initial concerns, and are pleased that they have recognized our extensive work and good faith commitment to meet and exceed those requirements,” said Virgin America CEO Fred Reid. "We plan to meet with our shareholders immediately to address the Department’s proposed conditions.”
Virgin America said it hoped to receive final DOT approval in anticipation of a mid-summer launch from its base at San Francisco International Airport to New York’s John F. Kennedy Airport. Four additional cities—Los Angeles, San Diego, Las Vegas and Washington D.C.—are planned to be added within nine months of the company's first flight.
“Today’s order puts us one giant step closer to flying,” said Virgin America spokesman Gareth Edmondson-Jones. “We look forward to finally get our wings—it will be a huge win for our employees, investors, supporters, and the traveling public.”
Virgin America is also in the final stages of receiving approval from the Federal Aviation Administration (FAA) as the first new airline ever to be certified through the agency’s new Air Transportation and Oversight System (ATOS) safety program—the FAA's newest and most advanced safety surveillance program. The airline finished its formal FAA safety evaluation in December 2006, and FAA officials commented that it was "the best certification they had seen in 25 years."
Virgin America recently unveiled its onboard cabin, including mood lighting and a digital inflight entertainment system providing on-demand moves and TV, games, music and online chat rooms—and even self-service mini-bars for snacks and beverages available throughout the flight. In first class, customers can experience massage chairs with 55 inches of seat pitch (legroom). But even with these innovations and luxuries, Virgin America will offer low fares.
Virgin America plans to serve up to 30 cities within five years of operation, pending government approval. The airline intends to create more than 1,000 new U.S. jobs in its first year and up to 5,000 within five years. In addition to this direct job creation, by its fifth year Virgin America will be responsible for indirectly creating approximately 50,000 new U.S. jobs in total.
For more information about Virgin America, visit its website at www.virginamerica.com.