Virgin America tries again

Virgin America has revised its bid to operate in the U.S. and has made it clear that it would ditch its Chief Executive, if necessary, to win approval.

Hoping to bring British billionaire Richard Branson's brand of low-cost luxury stateside, the carrier will need to satisfy federal law, which stipulates that 75 percent of any U.S.-based airline must be owned or controlled by American citizens, before it can begin flights.

On December 27, the Transportation Department rejected the carrier's initial bid.

The airline has confirmed that it would be prepared to part company with Fred Reid, its Chief Executive, and reduce its ties with the British-based Virgin Group, in order to begin flights this year from San Francisco, its proposed hub.

"Changes to the company structure and investor agreements are extensive and demonstrate the extent to which Virgin America and its investors are prepared to go to get the airline approved," read a statement from the company.

Continental Airlines and other domestic carriers argued that UK interests would influence Virgin's new operation, a complaint upheld by federal decision-makers.

Since this ruling late last year, Virgin America has agreed to "clarify and relax" elements of its trademark licence, and has secured a pledge of $20 million from American investors to help it address any funding imbalance. Only U.S. citizens will be able to invest in future.

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