December 9, 2005 – VIRGIN America said yesterday that it had finally lined up the funding it needs to enter service next year.

The announcement is the latest development in a series that has seen the aspiring carrier inching its way towards go-ahead over the past couple of years. Minority shareholder Sir Richard Branson said in July that the names of the US investors in the venture would be revealed later in the month. In the event, no such information was forthcoming, but yesterday’s declaration indicates that the money is indeed in the bag at last.

Virgin America says it has secured $177.3 million, much of it from VAI Partners, a group funded by private investment firms Black Canyon Capital of Los Angeles and Cyrus Capital Partners of New York. Both are putting in slightly more than $44 million, for a total of $88.9 million. Black Canyon managing director Mark Lanigan will serve as Virgin America chairman. Branson’s British Virgin companies will contribute $29.8 million in equity and $58.6 million in debt.

“With the proceeds of this funding we can now pursue important initiatives such as recruiting, initiating US Department of Transportation and FAA certification, and developing awareness in the marketplace,” says recently appointed Virgin America chief executive Fred Reid, a former president of Delta Airlines.

Launch of the new low-cost carrier, which is to be based at San Francisco International, is keenly awaited by the IFE/communications industry following a string of announcements about the innovations to be expected aboard the carrier’s fleet. This will comprise 33 Airbus A320s, 18 of which will be bought and 15 leased from General Electric Capital Aviation Services.

The aircraft will feature Inflight Canada iCACHE underfloor installations for the as yet unannounced AVOD inflight entertainment hardware. Montreal-based Inflight Canada is also contributing a package of cabin system improvements intended to enhance audio audibility and video visibility, place controls and ports within easy reach of passengers, and relocate emergency equipment so that it remains accessible while no longer obstructing passenger stowage and access.

California’s IMS Inflight is supplying its Terminal Data Loader, designed to support network delivery of digital audio and video programming. And the airline’s programming team will have access to software technologies designed to support multi-tasking on in-seat screens, allowing an instant-messaging window to remain open while a film is playing, for instance.

With a planned initial workforce of 2,000, Virgin America would be the only major airline to be based in California. Apart from San Francisco, cities likely to be served include New York. According to Fred Reid, planned growth in Virgin America operations could generate an additional 20,000 to 30,000 indirect jobs across the USA.