Virgin America Announces Corporate Changes for DOT
Posted: 19 Jan 2007, 01:26From here
But it comes at a price:
Airline Reapplies For US Operating Approval
Virgin America, based in Burlingame, CA, announced sweeping changes in its corporate governance rules Wednesday to placate regulators at the US Department of Transportation (DOT). The fledgling airline has reapplied for an operating license to begin commercial service in the US.
But it comes at a price:
Virgin America says it has also changed its trademark licensing scheme allowing it to drop the Virgin name if necessary, and removed a Virgin Group seat on the board of directors leaving only two of eight to the UK company.
At least one industry analyst believes the changes should win DOT approval for the airline. Henry Harteveldt, a senior analyst with Forrester Research told the Chronicle, "The fact that they are taking steps to create a voting trust, relinquishing a board seat and the fact that they would be willing to drop the Virgin reference in the brand name shows this is a company that is serious about taking to the skies."
