"The United States (U.S.) airline industry is unique among industries in being governed by
federal statutes requiring air carriers seeking to be certified in the U.S. to be “owned or
controlled” by a “citizen” of the U.S.1 This requirement is enforced by the Department of
Transportation (DOT) performing “fitness reviews” on applicant airlines to ensure they meet the
“citizenship” definition.2 Historically, the U.S. has limited ownership and control to U.S. citizens
for four primary reasons: the protection of a fledgling U.S. airline industry, the regulation of
international air service through bilateral agreements, concern about allowing foreign aircraft
access to U.S. airspace, and military reliance on civilian airlines to supplement airlift capacity.3"
Of Particular interest to this Virgin America deal:
Voting equity up to 25 percent and nonvoting equity up to 49 percent by a foreign entity is allowed, and any equity
above these levels must be held in trust or converted to debt. Foreign holdings will be counted
cumulatively towards these totals. (page 24)
"The United States (U.S.) airline industry is unique among industries in being governed by federal statutes requiring air carriers seeking to be certified in the U.S. to be “owned or controlled” by a “citizen” of the U.S.1 This requirement is enforced by the Department of Transportation (DOT) performing “fitness reviews” on applicant airlines to ensure they meet the “citizenship” definition.2 Historically, the U.S. has limited ownership and control to U.S. citizens for four primary reasons: the protection of a fledgling U.S. airline industry, the regulation of international air service through bilateral agreements, concern about allowing foreign aircraft access to U.S. airspace, and military reliance on civilian airlines to supplement airlift capacity.3"
Of Particular interest to this Virgin America deal:
Voting equity up to 25 percent and nonvoting equity up to 49 percent by a foreign entity is allowed, and any equity above these levels must be held in trust or converted to debt. Foreign holdings will be counted cumulatively towards these totals. (page 24)
Source: http://dailyairlinefilings.com/public/furlan.pdf