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Virgin America aims for 2006 take off
Sir Richard Branson’s US domestic airline project Virgin America has secured more than $177 million in funding.
The paper airline claimed this was among the largest funding transactions of any start-up airline in US history.
With the funding in place, Virgin America now has to gain regulatory approvals from the US Department of Transportation and Federal Aviation Administration.
The carrier aims to start services from its San Francisco base from next year using a fleet of 33 Airbus A320 aircraft.
CEO Fred Reid said: “Our investors share a commitment to build an innovative airline based on safe and efficient operations, low costs, outstanding guest service, and a unique level of engagement with our employees.
“With the proceeds of this funding, Virgin America can now pursue important initiatives such as recruiting highly talented people, initiating the US DoT and FAA certification process and developing awareness in the marketplace.”
Mark Lanigan, managing director of investment firm Black Canyon Capital – one of the funding partners – becomes chairman of the airline.
He said: “We have invested in Virgin America because we are impressed with the founding team and because we believe the Virgin brand is a great fit for the US market.
“We see an opportunity for Virgin America to take advantage of its strong capitalisation and its differentiated buisness model to carve a successful niche in this rapidly evolving marketplace. The airline industry plays a vital role in our economy and the successful implementation of Virgin America’s business plan will bring jobs and economic development to the markets it serves.”
Report by Phil Davies
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