Virgin America Slams 'Legacy' Whining

Aug. 18, 2006
Virgin America said Thursday U.S. legacy carriers were just seeking protection, or leverage against the British government.

Virgin America denounced complaints by U.S. legacy carriers over its application to be certified as a low-fare airline in the United States.

American Airlines, Continental Airlines, Delta Air Lines and US Airways, plus the pilots union, all want the Transportation Department to block Virgin America's 8-month-old application to offer discount fares.

Virgin America said Thursday U.S. legacy carriers were just seeking protection, or leverage against the British government.

"Continental's own filing stated its true motive: To secure rights to London Heathrow," said Fred Reid, Virgin America's chief executive.

"(None of the legacy carriers' comments call) into question Virgin America's sound business plan, experienced management team or technical compliance capabilities," Reid said. "Instead of focusing on actual facts that show we are an American-owned and -controlled company, they have created irrelevant 'conspiracy theories' about our application.

"It is farfetched to argue that U.S. citizens are somehow foreign, that debt is equity or that standard provisions protecting minority investors constitute 'actual control' of a U.S. airline that is clearly managed by U.S. citizens and 75-percent owned by U.S. citizens."

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