Virgin America (San Francisco) is applauding the Department of Transportation’s (DOT) decision confirming the carrier’s financial fitness and U.S. citizenship status. Yesterday (December 8), the DOT issued a ruling that the airline and its proposed new ownership structure will remain fully compliant with U.S. ownership laws. U.S. law requires that domestic airlines remain under the control of U.S. citizens, with no more than 25 percent of the voting stock being held by foreign citizens.
75 percent of the company stock is currently held by the U.S.-based VAI Partners, LLC and 25 percent is held by the Virgin Group. However, the U.S. investors comprising VAI Partners will change with the following entities now comprising the VAI stake:
- Cyrus Aviation Investor, LLC – 55.5 percent
- VAI MBO Investors, LLC—27.8 percent
- VX Employee Holdings, LLC—16.7 percent
- VAI Management, LLC—less than 1 percent
Here is the full press release: