Virgin America Clinches Funding for 2006 Launch

Virgin America secured $177.3 million in committed capital from an investment group, as the new U.S.-based airline startup taxied toward a 2006 launch date.

Virgin America, an offshoot of Virgin Airlines, said the funding commitment –from VAI Partners, Black Canyon Capital and Cyrus Capital Partners- was the largest for a startup.

Under terms of the funding agreement, Virgin America´s board of directors appointed Mark Lanigan, a managing director of Black Canyon Capital as chairman of the carrier and Fred Reid its CEO.

In accordance with federal ownership guidelines for U.S. airlines, the Virgin group of companies headed by Richard Branson, will provide the remainder of Virgin America´s startup funding to hold a minority stake in the carrier. The carrier intends to rely on a fleet of Airbus A320 aircraft.