First time here? Check out the site's "greatest hits" or read a random post from the archives. Feel free to ask a question, and consider subscribing to the latest posts via RSS or e-mail. Thanks for visiting!

The Department of Transportation has spoken, and embattled airline-to-be Virgin America can fly… IF — and only if — they fire their CEO.

That would be Fred Reid, whom you may remember from such video aircraft tours like this one.

Here’s the word from the DOT:

“We tentatively find that the applicant’s replacement of Mr. Reid as CEO and board member with a U.S. citizen who has no prior affiliation with the Virgin Group would substantially remedy our concerns over the independence of the applicant’s management from the Virgin Group,” DOT said.

As a condition of gaining approval, Virgin America must confirm Reid’s termination of employment within 90 days of the carrier’s obtaining its certificate, and any follow-on consulting work must end within 180 days of his removal.

Tough break for Fred, but I’m not worried about him. Something tells me he’s got a platinum parachute waiting for him.

There is also a dispute over the use of the Virgin name, and the payment of royalties to the British mothership. That could actually be a bigger snag, in the end, since the Virgin name is something the airline presumably wants.

Pass the popcorn, again.

Related:
- Virgin America is un-American
- Virgin America wants your vote, teases you with glimpses of their planes
- Update: Virgin Atlantic revises its ownership structure, potentially making it legal