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→ Virgin America said that it would consider removing Richard Branson from the board, and possibly even dropping the "Virgin" brand entirely.[13] The airline was also prepared to remove then-CEO Fred Reid "should the DOT find that necessary".[14] Clearance and take-off[edit]
Virgin America said that it would consider removing Richard Branson from the board, and possibly even dropping the "Virgin" brand entirely.[13] The airline was also prepared to remove then-CEO Fred Reid "should the DOT find that necessary".[14] Clearance and take-off[edit]
Opposition and setbacks[edit]
Virgin America secured its first amount of funding in late 2005 and submitted the required U.S. Department of Transportation (DOT) certificate application.[10] The approval process was filled with debate from the support and opposition of the new airline. City and state representatives from California and New York led the support for the airline. The biggest opposition came from the Air Line Pilots Association (a national aviation labor union) and existing competitor U.S. airlines led by Houston-based Continental Airlines. The review of Virgin America's application was prolonged because of this opposition, which claimed Virgin America would not be under U.S. ownership or control.[11] The application was denied by the Department of Transportation on December 27, 2006.[12]
In order to achieve the necessary approval, Virgin America proposed a restructuring of the airline: voting shares would be held by a DOT-approved trust and only two Virgin Group directors would be on the eight-person board. In addition, Virgin America said that it would consider removing Richard Branson from the board, and possibly even dropping the "Virgin" brand entirely.[13] The airline was also prepared to remove then-CEO Fred Reid "should the DOT find that necessary".[14]
Clearance and take-off[edit]
Airbus A319 "Contents May Be Under Pressure" at San Francisco International Airport
Virgin America was tentatively cleared to fly by the U.S. DOT on March 20, 2007, but would not be given full permission until it changed its business structure by enacting several reforms as specified by the DOT. These reforms included the replacement of Fred Reid and the limiting of Virgin Group's influence on the airline.[15] Virgin America fought to keep Fred Reid as CEO,[16] However, as part of the DOT’s final approval in May, Reid was allowed to stay on nine months after the airline certification, six months as CEO and three months as a consultant.[17]
Virgin America started selling tickets in July 2007. Two years delayed, the airline made its inaugural New York and Los Angeles to San Francisco flights on August 8, 2007. In December 2007, C. David Cush replaced Reid as CEO of the airline.[18]
Virgin America reported a $270 million loss from August 2007, when it began operations, through the first two quarters of 2010.[19] The airline reported its first quarterly profit, of $7.5 million, in the third quarter of 2010.[20]
In early March 2009, there were reports that the U.S-based investors sold their stakes in Virgin America.[21][22] Virgin America's CEO refused to comment on "private financial matters", but stated that the U.S. investors had not decided that they wanted out of the company.[23][24][25]
On May 21, 2009, Virgin America became the first U.S. airline to offer Wi-Fi access via Gogo Inflight Internet on every flight. To kick off the service, Oprah Winfrey chatted with a flight attendant, Mandalay Roberts, aboard Flight 780 between Seattle and Los Angeles using Skype. Voice over IP will not be allowed on flights normally. The airline will charge for the service.[26] Between November 10, 2009, and January 15, 2010, the airline offered free WiFi with a subsidy from Google.[27]
2010s[edit]
In March 2010, Virgin America announced its intention to start fly
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