FLIGHT NEWS 3

Virgin America

High flying entrepreneur Richard Branson is investing money and lending

the trademark of his business empire  -

but is not a "Svengali" pulling the strings of the Virgin America airline, the company's chief executive said

on Wednesday. Attempts by some of the biggest US airlines to force Virgin America to turn over more

information to regulators about its investors, business plan and ties to the London based Virgin Group.

Fred Reid called the effort a fishing expedition and a self-serving tactic to delay Virgin America's

start up as a low-cost carrier in the summer.

"This is not a Richard Branson airline or a Virgin company," Reid said in an interview.

Led by Continental Airlines, some carriers and labor groups have questioned whether Virgin America,

with its clear connection to Branson, is a US-run venture or an end-run around federal law that prohibits

foreigners from holding a controlling interest in a domestic airline.

Sir Richard Branson has long wanted to enter the US airline market as a domestic player.

His Britain-based Virgin Atlantic flies to US cities from London and Manchester.

The US Transportation Department is reviewing the application to begin service -

the standard review of ownership, management and operations can take several months. A separate Federal

Aviation Administration safety review is also necessary. Paperwork for FAA approval will be filed this week,

Reid said.

Transportation planners have previously favored new commercial entrants the size of Virgin America and within

recent years overruled objections by politically powerful US-based cargo giants

FedEx and United Parcel Service in a similar foreign ownership dispute.

Additionally, Continental, Delta Air Lines and American Airlines want the Transportation Department to

make Virgin America submit additional information about investment firms

Black Canyon Capital and Cyrus Capital Partners - which led $177 million in start-up financing.

Big US carriers, which are under severe pressure from low-cost rivals, also have sought more details about

the 25 percent equity stake of Branson's Virgin Group - including four Virgin-affiliated airlines around the world.

They are also interested in Virgin America's relationship with European aircraft manufacturer

Airbus - which is supplying airliners.

"Those questions undermine the applicants' bald assertion that Virgin America qualifies as a US citizen,"

Continental said in documents filed with the Transportation Department. A spokesman at Continental declined to comment further. A former Delta president and senior executive with Lufthansa who was brought on by Branson personally- Reid said the Branson aura may create some misimpressions about his involvement but the

Virgin America application meets all US requirements.

"Richard isn't the Svengali activist that everybody says he is - 'You know, calling me and saying

fly here and I want the flight attendants uniforms to look like this.' Richard has never done that," Reid said.

Reid said regulators can ask for more information but noted that the application is nearly

1,000 pages long and he cannot think of any detail that was not included.