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WASHINGTON (AP) - The Transportation Department on Tuesday removed a barrier to Virgin America's plans to start a U.S. airline, voicing support for its plan to comply with laws limiting foreign control of a domestic carrier.
The agency gave a tentative OK to a revised plan filed in January by Burlingame, Calif.-based Virgin America, saying in a prepared statement that the plan "should meet U.S. ownership rules" that cap foreign control of a U.S. airline at 25 percent. The startup still faces opposition from several U.S. airlines.
One condition for the Transportation Department's support is that Virgin America replace CEO Fred Reid, the former Delta Air Lines Inc. president hired by British billionaire Richard Branson.
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