Flight Delayed at Virgin

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Reid insists that the law doesn't need to change to get Virgin America flying. Last fall, the Bush Administration sought to loosen foreign-ownership rules, which ostensibly exist for national security but which critics see as another case of protectionism. U.S. carriers themselves have benefited from foreign funding, especially during the industry's regular downturns. But the last thing domestic carriers want to see is another snazzy, low-cost competitor à la JetBlue. Any hope that the Administration will change the foreign-ownership rule is gone, partly because of political fallout surrounding a Dubai company's attempt to run some big U.S. ports. Branson, therefore, remains a dangerous man.

Despite its conviction that it complies with existing regulations, Virgin America needs to rejigger some fairly major aspects of its corporate and financial structure--and then hope the DOT reconsiders. Meanwhile, the industry's other big regulator, the Federal Aviation Administration, has cleared Virgin to fly. The company has also hired enough employees, including dozens of pilots and flight attendants, to actually run an airline--if, that is, they're allowed to take off.