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Branson’s Virgin plan for US not ready for takeoff
By requesting more information, US government officials delayed Virgin America’s plan to start flights this year.
Virgin must supply more details about its ownership and financing before permission can be obtained, the US Transportation Department says.
Branson’s plan was to launch service this year from San Francisco to New York City.
American airlines have objected to the service and have urged the US government to suspend any approvals until it’s shown that US investors control at least 75% of the company’s equity, which is a legal requirement.
“We believe our application is fully compliant with existing US law,” Fred Reid, the carrier’s CEO, said in a statement.
Virgin officials say they do not yet have a launch date.
Report by David Wilkening
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