I missed this. Virgin got approval. Good. “U.S. regulations limit holdings by a foreign shareholder in a U.S. carrier to no more than 25% of its voting shares” Stupid antiquated law, designed to reduce competition.
Virgin America to Start Flying Midsummer
By PAULO PRADA
May 19, 2007; Page A2
Virgin America, the low-cost upstart airline founded by British billionaire Richard Branson, plans to begin flying midsummer, following a ruling Friday by the federal government that the carrier meets foreign-ownership rules.
In a blow to the airline’s initial strategy, however, the government denied a request by Virgin America that Frederick W. Reid, its chief executive officer, be allowed to remain at its helm. Because Mr. Reid was personally hired by Sir Richard to get the fledgling effort airborne, the government has argued that Mr. Reid remains “beholden” to foreign interests and must step down within six months.
After a 17-month struggle by Virgin America to obtain regulatory approval, the Department of Transportation in a ruling said the carrier had taken sufficient steps to allay government concerns over Virgin America’s ownership structure.
U.S. regulations limit holdings by a foreign shareholder in a U.S. carrier to no more than 25% of its voting shares. Though Sir Richard’s Virgin Group Ltd. owns just under that amount, competitor U.S. airlines successfully lobbied the government that Virgin America’s British investors held undue sway over its management and financing.
So why should that limit be eliminated before LHR gets opened up to any airline that wants in?