Virgin America low-cost carrier unveiled
Travelbiz
Virgin America low-cost carrier unveiled
Virgin's new low-fare US-based airline was named Virgin America yesterday.
The unveiling of the name was accompanied by an announcement that the carrier would buy and lease up to 105 narrow-body jets from Airbus in a deal estimated to be worth USD1 billion.
Virgin America head Frederick Reid said the airline has placed an order to buy 11 124-passenger A319s and seven 150-passenger A320s, to be delivered early in 2005.
Reid did not divulge details of Virgin America's route plans, other than that it would fly between New York and San Francisco.
Virgin group head Richard Branson, a UK citizen, will be a minority shareholder in the airline, as US law forbids foreigners from owning more than 49 per cent of a domestic carrier.
Virgin America has yet to identify its US-based investors.
16 June 2004
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