March 21, 2007: It’s official finally, though not final. First reports from the US have indicated that Virgin America has been given the nod to fly. However, the approval comes pending changes to its ownership plan.

Pre-conditions for the final approval from the US Department of Transportation mean that it would have to make changes in its corporate structure. Significantly, the US Transportation Department had denied Virgin America's application three months ago, saying the carrier was not controlled by U.S. citizens, as required by law.

It may be recalled that Virgin America had first sought a license to fly in December 2005, when it raised more than $177 million in startup capital. However, Branson’s involvement had forced federal regulators express concern over whether the airline met US ownership standards.

The changes listed now say that Virgin America should undergo a corporate revamp. The airline can start offering services only if this is done, said a report.

This would mean that CEO Reid, an airline industry veteran hired by Bransonwould have to be replaced with a US citizen. It will also need to modify its trademark license agreement with Virgin Group to remove certain geographic and operational restrictions and the requirement that it pay royalties to the Virgin Group should the airline conduct operations independent of the Virgin name, a report added.

If the final approval comes through, Virgin America would offer low-cost domestic air service like Southwest Airlines Co and JetBlue Airways Corp and the first route will be between San Francisco and New York City. It is likely that the airline could begin offering flights as early as this summer.