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WASHINGTON (AP) - The Virgin brand's new U.S.-based low-fare airline on Thursday submitted an application for federal certification after lining up $177.3 million in financing that was led by a group of American investors who will assume majority ownership of the carrier.
The bulk of the equity and debt behind Virgin America Inc. — $88.9 million — will come from VAI Partners LLC, a group backed by Black Canyon Capital LLC and Cyrus Capital Partners LP, the company said in a filing with the Department of Transportation. Virgin Group Ltd., the London-based parent company of Virgin Atlantic Airways, Virgin Express in Europe and Virgin Blue in Australia, will provide the remainder of the financing and become a minority shareholder.
U.S. law forbids foreigners from owning more than 49 percent of the equity or 24.9 percent of the voting power of a domestic carrier.
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