Branson gets closer to starting U.S. airline

0 Comments | USA TODAY, December, 2005 | by Barbara De Lollis

As U.S. airlines attempt to lower their costs in bankruptcy court, upstart discounter Virgin America on Thursday made new steps to take off as a U.S. carrier.

If successful, it would be the first U.S. carrier started with funding by a foreign airline. But the start-up, the brainchild of Virgin Atlantic founder Richard Branson, could be in for some turbulence as it faces increasingly leaner competitors and the possibility of a lengthy fight over its citizenship.

The airline filed its application Thursday with the Department of Transportation to fly as a U.S. carrier, and it has secured $177.3 million for its fight and initial start-up costs. About $90 million is from VAI Partners, a U.S. investment group funded by Black Canyon Capital and Cyrus Capital Partners....