Virgin America cleared for take-off, CEO forced to resign

By Darren Murph | May 20, 2007

We’d heard rumblings that Virgin America was indeed lobbying for the US Department of Transportation’s blessing to take off from American soil, and after getting a hands-on experience that was second to none, we couldn’t help but hope for things to work out. Sure enough, VA has now been given the almighty thumbs-up to operate in the United States. Interestingly, the final approval was only granted after “several additional conditions” were finally agreed to, one of which will leave the current CEO sans a job. Unfortunately for Mr. Fred Reid, “US law restricts foreign ownership in airlines to 25-percent of voting stock,” and apparently, the DOT didn’t take too kindly to Reid’s “longstanding association with foreign investors,” most notably Virgin Group’s Richard Branson. Nevertheless, the current head man will stay on board for another six months, and while a replacement has yet to be named, the airline hopes to get its birds in the air sometime this summer. Initially, flights will travel from its home base (SFO) to New York (JFK), and while there’s no definite timetable as to when routes will be expanded to hit other US cities, feel free to click through for the full lineup of locales that VA hopes to be servicing sooner rather than later.

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