Richard's other problem child>>>
Thread Starter
Richard's other problem child>>>
Virgin America on Thin IceFebruary 26, 2009
Despite being popular, hip, and backed by billionaire Sir Richard Branson, Virgin America suddenly finds itself with an uncertain future. Following a $227 million loss during its first 12 months, Virgin's hedge fund investors, which own approximately 75% of the airline, are considering a retreat. And believe it or not, that's worse than it sounds. With 28 jets that's a loss of $10M per aircraft..
Not only would Virgin have to pay back the investors' money plus 8 percent interest, but according to Dan Reed at USA Today, "Virgin America's rivals claim that [Virgin America] would violate U.S. law that says airlines operating domestic routes in the USA must be 51% owned by Americans who have 76% voting control." Essentially, if Virgin loses too many of its American investors, the airline is no longer American enough to operate here.
mummy won't be pleased..
Despite being popular, hip, and backed by billionaire Sir Richard Branson, Virgin America suddenly finds itself with an uncertain future. Following a $227 million loss during its first 12 months, Virgin's hedge fund investors, which own approximately 75% of the airline, are considering a retreat. And believe it or not, that's worse than it sounds. With 28 jets that's a loss of $10M per aircraft..
Not only would Virgin have to pay back the investors' money plus 8 percent interest, but according to Dan Reed at USA Today, "Virgin America's rivals claim that [Virgin America] would violate U.S. law that says airlines operating domestic routes in the USA must be 51% owned by Americans who have 76% voting control." Essentially, if Virgin loses too many of its American investors, the airline is no longer American enough to operate here.
mummy won't be pleased..
Well maybe the Americans should ask all the Greedy investment bankers who started this mess to chip in
Mummy couldn't give a Rats.
Mummy couldn't give a Rats.
