Virgin America taps ex-AA official as new CEO
— -- Virgin America, the new airline that fosters an unorthodox image, has stuck with a time-tested industry veteran for its new CEO.
The San Francisco-based start-up, which began flying on Aug. 8, on Monday named David Cush, senior vice president of global sales at American Airlines, as its new CEO. Cush, who has a background in airline finance, operations and sales, will start his new job on Dec. 10.
Cush, 47, says he expects little difficulty in transition from the world's largest airline to a start-up discounter. "I'm looking forward to getting into its culture — young, entrepreneurial and creative," Cush said in an interview.
While mostly known for its leisure business, Virgin America will increasingly target business travelers.
He replaces Fred Reid, a former executive at American and Delta Air Lines president, who helped start the company with investment from Virgin Group, a British company controlled by Richard Branson.
In certifying Virgin America in the USA, the Department of Transportation required Reid to step down once the carrier began flying because of its concern that he might be unduly affected by Branson.
Foreign investors can own only up to 25% of voting stock in a U.S. airline. Two U.S. private equity investor groups now own slightly more than 75% of Virgin America, with the rest owned by Virgin Group.
In an interview, Cush says Reid — his former colleague at American — approached him a few years ago as a possible No.2 job at Virgin America. Initial discussions faded as Virgin America focused on getting certified and reassuring U.S. regulators that it would be an American-owned company.
Cush's name resurfaced in July as a search committee formed by Virgin America's board of directors and led by chairman and former American CEO Donald Carty narrowed a list of potential CEOs.
"American (Airlines) is looked at as a training ground for airline executives," Cush says. "I have a very broad repertoire of experience. And it also came down to personal experience and the comfort factor (Carty and Reid) had in me."
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