Arguments over Virgin America's ownership have been silenced, at least for now.
Its ownership structure plagued the carrier prior to its launch in 2007, and last year the issue surfaced again after Virgin America advised US regulators of a substantial shift in its ownership.
The disclosure spurred harsh rhetoric from Virgin America's rival Alaska Airlines, and required a review by the US Transportation Department of the changes.
The result was a modified ownership structure of Virgin America's majority shareholder VAI. Cyrus Aviation, who's affiliated with original investor Cyrus Capital Partners, is the major holder in VAI.
Carrier CEO David Cush is now also an investor and member of Virgin America's board of directors.
But the most interesting fact to emerge from the review is a pledge by Virgin Group to supply Virgin America $63 million in debt financing.
A Virgin America spokeswoman explains that Cyrus plans to purchase an additional $15 million of the debt Virgin Group is supplying to Virgin America, which means Virgin Group is supplying a net of $48 million in debt financing, with Cyrus supplying the remaining $20 million.
US regulators seem comfortable with the new investment and have concluded that Virgin America is "not dependent on Virgin Group for capital to finance its ongoing operations".
Based on the new ownership structure, Virgin Group still maintains a 25% stake in Virgin America.
Regulators have also dismissed Alaska's request for a public inquiry into Virgin America's ownership.
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