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Virgin wants to fly in U.S.
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June 17, 1998: 11:57 a.m. ET
British billionaire Branson seeks to launch regional discount carrier
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NEW YORK (CNNfn) - Virgin Group Ltd. said Wednesday it is continuing to talk with various potential partners about starting a discount regional carrier in the United States.
Virgin previously held talks and continues to discuss such a carrier, to be named Virgin America, company spokesman William Whitehorn said.
But because of the tough regulatory scrutiny facing overseas carriers, Virgin wants to wait and see if the U.S. Department of Transportation clears an alliance between British Airways and American Airlines, a unit of AMR Corp.(AMR).
British billionaire Richard Branson, chairman and founder of Virgin Group, held talks with industry executive David Neeleman about starting Virgin America. Talks ended earlier this month, according to an interview late last week with the New York Times.
Neeleman is the former president of Morris Air, a Utah-based regional carrier bought by Southwest Airlines in 1993.
The two businessmen hit a snag when confronted with 72-year-old ownership restrictions that prevent international entities from controlling domestic skies. But any lobbying effort to lift the restrictions likely will face objections from Congress and U.S. airline executives.
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