A number of carriers, led by Continental Airlines Inc., challenge whether Virgin America is controlled by U.S. citizens, as required by law, or by Richard Branson. Branson who provided some financial backing for Virgin America and who originally conceived of the business.
Branson’s Virgin Group Ltd. of London controls 25 percent of the airline’s voting stock. The United States limits foreign ownership of U.S. airlines to 25 percent.
The Department of Transportation recently asked Virgin America for additional information about Branson’s role in forming the airline.
Virgin America executives said the airline complies with U.S. law because it is controlled by U.S. citizens.