Sir Richard Coming To Philly

Posted on Tue, Nov. 18, 2003

Philly development officials seek to lure Virgin USA HQ
Associated Press

PHILADELPHIA - Economic development officials are negotiating with Sir Richard Branson's Virgin Group in an attempt to lure a second low-cost airline to the city, a Philadelphia Industrial Development Group official said Monday.

Branson, whose Virgin Atlantic Airways operates trans-Atlantic flights, said in July he hoped to enter the low-cost airline business in the United States with a share in a new low-cost carrier early next year.

Virgin officials have talked to the PIDC, the city Commerce Department, the Gov.'s Action Team and the city-owned Philadelphia International Airport, and toured the Philadelphia Naval Business Center in August, said Elinor Haider, a PIDC assistant vice president.

Development officials pitched Philadelphia as a potential headquarters location offering office space and room to grow near the city-owned airport, and a lower cost of living than competing cities including New York, Boston, Washington, D.C., Los Angeles and San Francisco, Haider said.

Virgin officials didn't immediately return messages left at company offices Monday night seeking comment.

An airport official confirmed that the discussions are ongoing, but declined to elaborate. "Philadelphia International Airport is part of the team in discussion with Virgin USA as it relates to service at Philadelphia International Airport and the location of their headquarters," airport spokesman Mark Pesce said.

Haider said development officials are waiting to hear more from Virgin officials about their requirements. "We are anticipating making a more formal presentation in New York in next couple of months," she said.

Virgin operates low-cost airlines in Australia and Europe, and Virgin Atlantic offers flights from nine U.S. cities to London. Branson said he envisioned a quality low-cost service similar to New York-based JetBlue Airways.

Southwest Airlines, the nation's largest discount air carrier, announced on Oct. 28 that it plans to begin service in May from Philadelphia International Airport, where financially struggling US Airways has a hub and is currently the dominant carrier.
 
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