Order 2010-1-5 Served: January 8, 2010

U N I T E D S

T A T E S O F A

M E R I C A D E P A R T M E N T O F T R A N S P O R T A T

I O N UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on the 8 th day of January, 2010

Application of

VIRGIN AMERICA INC.

for a certificate of public convenience and necessity under 49 U.S.C. 41102 to engage in interstate scheduled air transportation of persons, property, and mail Docket DOT-OST-2005-23307

Petition of

ALASKA AIRLINES, INC.

to institute a public inquiry into the citizenship and control of Virgin America Inc. Docket DOT-OST-2009-0037

Petition of

AIRCRAFT MECHANICS FRATERNAL ASSOCIATION

to institute a public inquiry into the citizenship and control of Virgin America Inc. Docket DOT-OST-2009-0047

ORDER DISMISSING PETITIONS

On February 10, 2009, Alaska Airlines, Inc. (“Al aska”), filed a petition to institute a public inquiry into the citizenship of Virgin America Inc. (“Virgin America”). Specifically, the air carrier “move[d] the Department to immediately initiate an inves tigation into Virgin America’s citizenship and to conduct that investigation on the public record.” 1 Alaska cites various changes in Virgin America’s stru cture and capitalization, and argue s that such an investigation should be conducted with formal, public procedur es to ensure greater transparency. On February 20, 2009, the Aircraft Mechanics Frat ernal Association filed a similar petition. Alaska filed a renewed motion on August 21, 2009, ar guing that developmen ts since its initial petition supported conducting a public investigation of Virg in America’s citizenship.

Interested parties have filed a number of pleadin gs both in support of a nd in opposition to these requests. Virgin America opposes the Alaska petition, while severa l labor organizations, including the Air Line Pilots Association, the Association of Flight Attendants, and the

1 Petition of Alaska, at 6 (emphasis in original).2

Transport Workers Union of America, support th em, for substantially similar reasons to those cited by Alaska. Several exchanges of pleadings on the subject have been filed since the initial petition. 2

We are not persuaded that the public interest requir es us to institute a public proceeding in this matter. As petitioners acknowle dge, it has long been the De partment’s practice to conduct continuing fitness reviews informally. We have determined that an informal continuing fitness review is appropriate here. We have completed su ch a review of Virgin America’s fitness, and have concluded that Virgin America remains a U.S. citizen, subject to certain conditions. The Department has made public a detailed descrip tion of the Department’s review as well as its conclusions and the conditions imposed on Virgin America in a January 8, 2010, letter to the air carrier. That lette r is available to any member of the public on the Department’s website at http:\\ostpxweb.dot.gov/aviation.

ACCORDINGLY,

1. We dismiss the petitions filed by Alaska Airlines, Inc., and the Aircraft Mechanics Fraternal Association in Dockets DOT-OST-2005-23307, DOT-O ST-2009-0037, and DOTOST-2009-0047;

2. We grant all motions for leave to file in Docket DOT-OST-2009-0037; and

3. We will serve a copy of this order on the persons listed in Attachment A.

By:

SUSAN L. KURLAND Assistant Secretary for Aviation and International Affairs

An electronic version of this document is available on the World Wide Web at: http://www.regulations.gov

2 Most of these pleadings were covered by mo tions for leave to file, which we will grant.Attachment A

SERVICE LIST

KENNETH P QUINN JENNIFER E TROCK PILLSBURY WINTHROP SHAW PITTMAN LLP 2300 N STREET NW WASHINGTON DC 20037 EDWARD J GILMARTIN GENERAL COUNSEL CHRIS J WITKOWS KI ATTORNEY ASSOCIAITON OF FLIGHT ATTENDENTS CWA 501 THIRD STREET NW SUITE 900 WASHINGOTN DC 20001-2797 SUSAN B JOLIE LAW OFFICE OF SUSAN B JOLLIE 7503 WALTON LANE ANNANDALE VA 2203-2558

RUSSELL BAILEY AIRLINE PILOTS ASSOCIATION 1625 MASSACHUSETTS AVE NW WASHINGTON DC 20036 KYLE LEVINE ESQ SENIOR ATTORNEY COMMERCIAL AND REGULATORY LAW ALASKA AIRLINES INC 19300 INTERNATIONAL BLVD SEATTLE WASHINGTON 98168 MEGAN LAWRENCE ESQ MANAGING DIRECTOR GOVERNMANT AND COMMUNITY RELATIONS ALASKA AIRILNES INC 19300 INTERNATIONAL BLVD SEATLE WASHINGTON 98168

MARSHALL S SINICK ESQ EDWARD W SAUER ESQ SQUIRES SANDERS AND DEMPSEY LLP 1201 PENNSYLVANIA AVE NW WASHINGTON DC 20004-0407 LEE SEHAM ESQ SEHAM SEHAM MELTZ AND PETERSEN LLP 445 HAMILTON AVE SUITE 1204 WHITE PLAINS NEW YORK 10601 DAVID B. ROSEN TRANSPORT WORKERS UNION OF AMERICA AFL-CIO 1700 BROADWAY 2 ND FLOOR NEW YORK NEW YORK 10019-5905