Simpson Thacher has represented the Virgin Group in connection with the formation of Virgin America, a new low-fare US domestic airline. Investors led by two private equity firms, Black Canyon Capital and Cyrus Capital Partners, will provide half of the $177.3 million in total capital to be invested in the airline and will hold three-quarters of the voting stock. Companies controlled by the founder of the Virgin Group, Sir Richard Branson, and his associates will provide the rest of the money and will hold a quarter of the voting stock, keeping below a limit on foreign ownership of airlines.~~The new airline, Virgin America, has applied for approval from the Department of Transportation and the Federal Aviation Administration and intends to begin service in 2006 from its base of operations at San Francisco International Airport.~~The Simpson Thacher team working on the transaction over the past two and a half years include: Alan Klein, Elizabeth Cooper and Tony King (M&A); Brian Robbins and Amy Rubin (Executive Compensation and Employee Benefits); and John Creed and Nancy Mehlman (Tax).