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Virgin America Files for I.P.O.
By MICHAEL J. DE LA MERCED JULY 28, 2014 7:15 AM
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The interiors of the Virgin flights are bathed in mood lighting.Credit Jim Wilson/The New York Times
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Virgin America, the sleek low-cost American airline partly owned by Richard Branson, filed for an initial public offering on Monday after posting its first annual profit.
The airline gave a placeholder fund-raising target of $115 million, a figure used only to determine filing fees.
Virgin America, known for its stylishly upholstered aircraft replete with purple lighting and fancy touch-screen seat displays, has tried to be the latest disruptive airline to take flight in the United States.
But it was only last year that the company reported its first yearly profit in its decade of existence, earning $10.1 million on $1.4 billion in operating revenue. Still, revenue has been climbing since at least 2009.
Though sharing its name with Mr. Branson’s Virgin empire, Virgin America counts the British billionaire as only a minority shareholder. Mr. Branson’s Virgin Group owns about 22 percent of the company’s voting stock, limited in part by American regulations that restrict foreign ownership in domestic airlines to under 25 percent.
Another major shareholder is Cyrus Capital Partners, a hedge fund.
The I.P.O. will be led by Barclays and Deutsche Bank.
Photo
Sales have been climbing in recent years for Virgin America.Credit Jim Wilson/The New York Times
By MICHAEL J. DE LA MERCED JULY 28, 2014 7:15 AM
Photo
The interiors of the Virgin flights are bathed in mood lighting.Credit Jim Wilson/The New York Times
Related Links
Virgin America, the sleek low-cost American airline partly owned by Richard Branson, filed for an initial public offering on Monday after posting its first annual profit.
The airline gave a placeholder fund-raising target of $115 million, a figure used only to determine filing fees.
Virgin America, known for its stylishly upholstered aircraft replete with purple lighting and fancy touch-screen seat displays, has tried to be the latest disruptive airline to take flight in the United States.
But it was only last year that the company reported its first yearly profit in its decade of existence, earning $10.1 million on $1.4 billion in operating revenue. Still, revenue has been climbing since at least 2009.
Though sharing its name with Mr. Branson’s Virgin empire, Virgin America counts the British billionaire as only a minority shareholder. Mr. Branson’s Virgin Group owns about 22 percent of the company’s voting stock, limited in part by American regulations that restrict foreign ownership in domestic airlines to under 25 percent.
Another major shareholder is Cyrus Capital Partners, a hedge fund.
The I.P.O. will be led by Barclays and Deutsche Bank.
Photo
Sales have been climbing in recent years for Virgin America.Credit Jim Wilson/The New York Times
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