The U.S. Dept. of Transportation completed a review and found that Virgin America remains in compliance as a U.S. citizen, and the two agreed that the airline would make some changes to ensure that it remains in good standing.
From a marketing perspective, you have to love Virgin America's press release headline trumpeting the DOT finding:
Virgin America Cleared for Take-Off in 2010: U.S. Airline [my italics] Applauds DOT Decision Reaffirming Fitness and Citizenship
The whole issue pertained to whether Virgin America was indeed a U.S. airline and the low cost carrier, which is 25% owned by the Virgin Group, wasted no time in referring to itself as "U.S. Airline" in welcoming the DOT decision.
As part of the deal to remain in the DOT's good graces as a U.S. airline, Virgin America agreed to add a board seat, which it will fill with President and CEO David Cush, who is U.S. citizen and a new investor in the airline. That brings the number of board seats to nine, with seven filled by U.S. citizens.
Before heading up Virgin America in 2007, Cush was vice president of global sales at American Airlines, where he played an aggressive role during the distribution skirmishes between American, GDSs and travel agencies in 2006.
A Virgin America spokeswoman says the airline participates in all major GDSs, but gets about 80% of its booking through direct channels.
In the agreement with the DOT, Virgin America also opted to obtain new capital investments from entities other than Richard Branson's Virgin Group, ensuring that U.S. investors control at least 75% of Virgin America's voting stock.