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Virgin America gains operating approval
US aviation authorities have granted Virgin America Airlines its operating licence, enabling the low-cost carrier to announce plans to sell tickets.
The start-up, with ties to Sir Richard Branson, plans to start flying next month from its San Francisco base operating new Airbus A319s and A320s.
It plans to serve up to 10 cities within a year of its launch with routes to be confirmed.
Virgin America won regulatory approval of its business plan in May after agreeing to restructure its investor financing and pledging to replace its chief executive Fred Reid to satisfy a US law that limits overseas influence in domestic airlines.
But the airline will still have a branding and marketing relationship with Virgin Group, which operates Virgin Atlantic.
Some US airlines had opposed Virgin America’s entrance, saying Branson would be controlling the airline one way or another, Reuters reported.
Virgin America has said it is an American carrier and operating decisions will be made by US citizens, as the law requires.
The operating licence granted by the Federal Aviation Administration demonstrates that Virgin America meets US aviation safety standards and was the final government hurdle needed to launch.
by Phil Davies
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