Virgin America asked the Department of Transportation on Thursday to deny repeated challenges from Alaska Airlines (NYSE: ALK) to its U.S. citizenship status and close the case, according to Associated Press.
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The DOT has said it has been reviewing Alaska Airlines' allegations, which are based largely on news reports that Virgin America insists are inaccurate.
Some analysts say Alaska Airlines and United Airlines would stand to gain if Virgin America, which flies mainly transcontinental routes, were to cease operations temporarily or permanently.
Alaska Airlines later asked the DOT to issue an order tentatively finding that Virgin America no longer qualifies as a U.S. carrier. On Aug. 21, it repeated its allegations in another filing and again requested that the inquiry of the matter be held in public.
Under U.S. law, foreign ownership in a U.S. air carrier is limited to 25 percent of the voting interest in the carrier.
In March, Virgin America's top executive denied that a foreign entity is holding more than 25 percent of the carrier's voting shares. The Virgin Group, which is controlled by British billionaire Richard Branson, is a minority holder in Virgin America, the airline has said.
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