Virgin America denied flight rights by the US Government

Virgin America denied flight rights by the US Government

UK based billionaire Richard Branson has suffered a setback as the US government has rejected their proposal to start flights in the country through their Virgin America startup.

This company is partially owned by Branson. The law requires the company to show that U.S. citizens own and control at least 75 percent of the company.

Virgin Group had originally put up 25 percent of the initial $177 million investment to start Virgin America.

This news is a disappointment for Branson as he had hoped to funnel U.S. passengers to his trans-Atlantic carrier. With this he would have also expanded his brand in this world’s largest travel market.

Virgin America said in a statement on this new development: “While we disagree with this tentative order, we respect the department’s decision. We remain committed to getting our wings.”

The government authorities stated: “Virgin America’s close relationship with the U.K.-based Virgin Group indicates that the carrier is not under the actual control of U.S. citizens.”