DOT Reviewing Virgin America Proposed Transactions

HARRY R. WEBER

ATLANTA (AP) — The Department of Transportation is reviewing transactions proposed earlier this year by Virgin America involving its U.S. shareholders, amid questions raised about whether the privately held carrier remains in compliance with U.S. citizenship rules.

Roy Kienitz, the DOT's undersecretary for policy, said in a June 2 letter to Rep. James Oberstar, the Democratic chairman of the House Transportation and Infrastructure Committee, that the review will determine whether the agency should take any action.

He did not say how long the review would take or what specifically the DOT was looking at. The letter was posted Monday on an electronic docket of cases before federal agencies.

Under U.S. law, foreign ownership in a U.S. air carrier is limited to 25 percent of the voting interest in the carrier.

"All United States air carriers are required to notify the U.S. Department of Transportation when undergoing or proposing to undergo a substantial change in any area affecting their fitness, i.e., operations, management, or ownership and citizenship," Kienitz said. "Upon such notification, the Department generally commences a review of the air carrier's continuing compliance with both fitness and citizenship requirements."