Virgin America delays start of O'Hare flights

Virgin America Ltd., the U.S. airline partly owned by billionaire Richard Branson, indefinitely delayed the start of flights at Chicago's O'Hare airport after failing to acquire gate space from other carriers.

Chicago would have been the first mid-continent destination for the Burlingame, California-based carrier, which had said it hoped to begin the service this year. The airline, which disclosed its decision in a statement today, didn't say when it might make another attempt to secure gates at O'Hare.

The decision expands Virgin America's clashes with larger competitors Delta Air Lines Inc., American Airlines and United Airlines. U.S. regulators in June rejected Virgin America's bid to keep operating data it files confidential. The carrier also opposed efforts by other airlines to protect unused flight slots in Chicago, Washington and New York.

At O'Hare, "legacy carriers still control 99 percent of domestic departures, despite recent capacity cuts," Chief Executive Officer David Cush said in the statement. "When more airlines compete, consumers win with better service and lower fares."

The airline had been working since April to secure gates at O'Hare, which would have become the eighth city in its route system. The flights also could have fed passengers to trans- Atlantic service by Branson's Virgin Atlantic Airways Ltd.

Leased Through 2018

UAL Corp.'s United and AMR Corp.'s American are the largest airlines at O'Hare, occupying 71 percent of the airport's gates, according to Karen Pride, a spokeswoman for Chicago's Aviation Department. The city leases the gates to airlines already serving O'Hare on an exclusive basis through 2018.

Virgin America negotiated with "all of the major legacy carriers" at O'Hare, including American, United and Delta, said Abby Lunardini, a Virgin America spokeswoman.

"There are operational reasons we have the number of gates we do," said Mary Frances Fagan, a spokeswoman for Fort Worth Texas-based American. "We need them."

Spokeswomen for Chicago-based United and Atlanta-based Delta didn't immediately comment on Virgin America's decision or on talks with the airline.

Virgin America now flies to San Francisco, Los Angeles, San Diego, Las Vegas, Seattle, Washington and New York's John F. Kennedy airport. The airline initially planned service linking Chicago to San Francisco and to Los Angeles.