(Adds Virgin America comment)
Alaska Air Group Inc. (ALK) renewed its request that the U.S.
Department of Transportation open its review of Virgin America's
citizenship status to public scrutiny and comment.
The filing Friday by the parent of Alaska Airlines comes after
it filed two petitions earlier this year requesting a public
inquiry into whether Virgin America Inc. complies with U.S. foreign
ownership and control restrictions on U.S. carriers.
"Alaska makes this request to ensure DOT holds all airlines to
the same standard of compliance with U.S. law," said the carrier's
general counsel, Keith Loveless.
Virgin America started operations in 2007 after a delay in
securing regulatory approval linked to its ownership structure. To
comply with U.S. law, three-quarters of the voting stock must be
held by U.S. citizens. Virgin America is the creation of British
entrepreneur Richard Branson, whose Virgin Group owns the remaining
quarter of the airline.
A Virgin America spokeswoman said Alaska Airlines' latest
petition contains nothing new and Virgin America's ownership
structure has not changed.
"We're a U.S. company that has created over 1,500 new jobs since
we launched, captured a list of the major survey-based travel
awards, and lowered fares and improved service in the markets we've
entered."
The latest filing by Alaska Airlines, which competes with Virgin
America on West Coast routes, points out that the company hasn't
refuted news reports in March that its U.S. shareholders disposed
of their financial interest in the airline.
Virgin America has said it complies with the law and the DOT is
aware of its potential changes. The airline has been seeking
alternative investors after two private-equity groups that provided
the initial capital opted to trigger a sale clause. The airline
hasn't said whether U.S. investors retained an "economic interest"
alongside board representation, which its opponents said was
critical to meet the citizenship test.
Requests similar to Alaska's to the DOT have been made by Sen.
Patty Murray, D-Wash., chair of a Senate transportation
subcommittee, and Rep. James Oberstar, D-Minn., chair of the House
Transportation and Infrastructure Committee, as well as by groups
of pilots, flight attendants and aircraft mechanics.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com