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Travel Roundup: Alaska Questions Branson's Ownership, Delaware North Loses Asilomar, Virgin America's Unfiltered Wi-Fi and More

By Barbara E. Hernandez | Feb 11, 2009

Alaska Airlines demands inquiry into Virgin America’s U.S. ownership — Alaska Airlines petitioned the U.S. Department of Transportation raising concerns about whether Virgin America was 75-percent-owned by American citizens, a federal rule for domestic carriers. The petition also inquires about the carrier’s ownership by two hedge funds, Black Canyon Air Partners and Cyrus, who control the business. Alaska states the two hedge funds have allowed shares to be sold to Sir Richard Branson’s London-based Virgin Group. [Source: The Guardian (U.K.)]

Delaware North appeals Asilomar’s ARAMARK decisionDelaware North Companies, the concessionaire managing and operating Asilomar State Beach and Conference Grounds in Pacific Grove, Calif., filed an appeal with the California Department of Parks and Recreation and the state Attorney General’s office protesting Asilomar’s new 20-year contract awarded to ARAMARK Parks & Destinations. The appeal says the state didn’t correctly evaluate Delaware North’s proposal, it improperly disclosed company information and didn’t provide necessary documents. Delaware North, whose contract expired at the end of 2008, hopes to overturn the contract. [Source: Monterey County Herald]

Virgin to allow “naughty” Web sitesVirgin America unveils its first coast-to-coast flight Thursday offering Aircell’s Gogo Inflight Internet and it won’t filter adult-oriented Web sites. Although some airlines, like Delta Air Lines, use a wireless service, they also have a filter to block offensive material. Virgin America will not block the $12.95 a flight Wi-Fi that will appear on the back of individual seats. A Virgin America spokeswoman said the airlines didn’t see a problem with unfiltered Internet content and that she believed most passengers would behave appropriately. [Source: Boston Herald]

Illinois governor cuts state travel — Illinois Gov. Pat Quinn ordered employees to cut both in-state and out-of-state travel expenses and instead concentrate on teleconferencing, all in an attempt to alleviate the state’s $9 billion budget deficit. The cuts will go into effect immediately at all state agencies. [Source: St. Louis Business Journal]

Bay Area resident and award-winning business journalist Barbara E. Hernandez has covered tourism, real estate and personal finance. Her clients include the New York Times, Los Angeles Times, San Francisco Chronicle and Washington Post.

BNET User Analysis

Web Buzz:
  • Virgin America Inquiry Requested

    Wall Street Journal - 270 days 8 hours 45 minutes ago

    Alaska Airlines asked the Transportation Department to look into Virgin America's ownership status, to see if it meets U.S. requirements

  • Is Virgin America at least 75 Percent American?

    BNET Travel - 268 days 21 hours 40 minutes ago

    Is Virgin America under foreign control? That's what Virgin America competitor Alaska Airlines would like the U.S. Department of Transportation to find out. The federal agency, which requires all domestic airlines to be 75 percent American-owned, was asked by Alaska to go over Virgin America's recent business dealings. According to an article...

  • Virgin America Shareholders Cash Out, Airline Reports Negative 25 Percent Fourth Quarter Margin

    BNET Travel - 241 days 20 hours 47 minutes ago

    Things are not looking good for Virgin America now that the airline's two major US-based shareholders have apparently returned their stakes in the carrier to Virgin Group. If Virgin Group is still holding on to those stakes, then the carrier will be in violation of US-ownership requirements. If Virgin Group has found another US stakeholder to...

  • "New" Virgin America Investors?

    Aviation Week - 121 days 15 hours 46 minutes ago

    The Financial Times is reporting (free registration required) that Virgin America has lined up a "new" slate of U.S. investors. If true, that has the potential--as FT notes--to...

  • Virgin America expects new investors, O'Hare service

    ATW Daily News - 136 days 11 hours 28 minutes ago

    Virgin America CEO David Cush told Bloomberg News that "certainly one or more" American investors "will come to fruition before year end. . .These expressions are a lot firmer than they have been in the past. There is more capital available than there was six months ago. The risk tolerance has improved." He said the airline has received five...

 

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