Burlingame, Calif. - March 20, 2007 - The Department of Transportation (DOT) today tentatively approved Virgin America's application to start a new U.S. airline, finding the carrier is owned and controlled by U.S. citizens and is fit to operate as a domestic airline.

The DOT Order proposes that Virgin America finalize changes already offered by the company to address concerns about its citizenship, and to satisfy certain other pre-launch conditions.

"We worked very hard to address the Department's initial concerns, and are pleased that they have recognized our extensive work and good faith commitment to meet and exceed those requirements," said Virgin America CEO Fred Reid. "We plan to meet with our shareholders immediately to address the Department's proposed conditions."

Virgin America said it hoped to receive final DOT approval in anticipation of a mid-summer launch from its base at San Francisco International Airport to New York's John F. Kennedy Airport. Four additional cities - Los Angeles, San Diego, Las Vegas and Washington D.C. - are planned to be added within nine months of the company's first flight.

"Today's order puts us one giant step closer to flying," said Virgin America spokesman Gareth Edmondson-Jones. "We look forward to finally get our wings - it will be a huge win for our employees, investors, supporters, and the traveling public."

"We'd like to thank Secretary of Transportation Mary Peters, Assistant Secretary Andy Steinberg, and the entire DOT team for tentatively finding us fit, a U.S. citizen, and ready to fly. Once finalized, this decision will create more jobs, service, and competition for U.S. travelers."

The company also expressed its appreciation to its key supporters in this process, especially Mayor Gavin Newsom, Governor Arnold Schwarzenegger, Congresswoman Anna Eshoo, Senator Diane Feinstein, and Senator John Ensign, San Francisco Bay Area businesses, the City of Burlingame and the tens of thousands of other supporters who used their website to voice their encouragement for our "let VA fly" campaign.

Virgin America is also in the final stages of receiving approval from the Federal Aviation Administration (FAA) as the first new airline ever to be certified through the agency's new Air Transportation and Oversight System (ATOS) safety program-- the FAA's newest and most advanced safety surveillance program. The airline finished its formal FAA safety evaluation in December 2006, and FAA officials commented that it was "the best certification they had seen in 25 years."

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Media Contact:
650-762-7187 / media@virginamerica.com

About Virgin America:

Virgin America is owned and controlled by U.S. citizens. The company plans to launch domestic U.S. scheduled airline service this summer utilizing new Airbus A319/A320 family aircraft. The company has announced that it has firm orders for 33 new aircraft including 18 aircraft purchased aircraft from Airbus and 15 aircraft leased from General Electric Capital Aviation Services. Virgin America's principal base of operations will be at the San Francisco International Airport.

To learn more about Virgin America visit www.virginamerica.com. Aspiring candidates can visit www.virginamerica.com to learn more about joining the Virgin America team.