Branson upbeat on US airline launch this year
January 09, 2004 (ATW) Virgin Atlantic Chairman Richard Branson told ATWOnline yesterday that he "very much hopes" to launch a US-based low-fare airline in 2004 and will be "very disappointed if we can't."
Speaking at Mojave Airport at the rollout of the Virgin Atlantic GlobalFlyer, which will attempt a solo circumnavigation of the globe later this year, Branson said Virgin will accept a minority ownership position in the new airline in hopes that US law will change in the future to permit it to have a majority stake. US law limits non-US voting equity to 25% and total foreign investment to 49%.
Separately, sources told ATWOnline that Virgin has narrowed its choice of locations for its proposed carrier to one of three cities: Boston, Washington or San Francisco. Branson declined to confirm this, however, stating only that the company is in discussions with "three, four, five cities."
He also said Virgin is evaluating two alternatives: Launch an all-new airline or acquire an existing operator. "It could go either way," he said, adding that the company is in discussions with an airline about the possibility of "carving off chunks of that operation." Singapore Airlines, which owns 49% of Virgin Atlantic, also is expected to invest in the new carrier. Two names begin considered are Virgin Red and Virgin USA. Branson said that despite the presence of Southwest Airlines, JetBlue and other low-cost carriers, there still is plenty of room for another low-fare airline.
Designed by Burt Rutan and built by Scaled Composites, the GlobalFlyer will be piloted by Steve Fossett, a sportsman and holder of numerous aviation records including the first solo balloon flight around the world. It is powered by a single Williams International turbofan. Rutan designed and built the Voyager, which completed the first nonstop flight around the world in 1986 with his brother Dick as pilot and Jeana Yeager as copilot.--Perry Flint
January 09, 2004 (ATW) Virgin Atlantic Chairman Richard Branson told ATWOnline yesterday that he "very much hopes" to launch a US-based low-fare airline in 2004 and will be "very disappointed if we can't."
Speaking at Mojave Airport at the rollout of the Virgin Atlantic GlobalFlyer, which will attempt a solo circumnavigation of the globe later this year, Branson said Virgin will accept a minority ownership position in the new airline in hopes that US law will change in the future to permit it to have a majority stake. US law limits non-US voting equity to 25% and total foreign investment to 49%.
Separately, sources told ATWOnline that Virgin has narrowed its choice of locations for its proposed carrier to one of three cities: Boston, Washington or San Francisco. Branson declined to confirm this, however, stating only that the company is in discussions with "three, four, five cities."
He also said Virgin is evaluating two alternatives: Launch an all-new airline or acquire an existing operator. "It could go either way," he said, adding that the company is in discussions with an airline about the possibility of "carving off chunks of that operation." Singapore Airlines, which owns 49% of Virgin Atlantic, also is expected to invest in the new carrier. Two names begin considered are Virgin Red and Virgin USA. Branson said that despite the presence of Southwest Airlines, JetBlue and other low-cost carriers, there still is plenty of room for another low-fare airline.
Designed by Burt Rutan and built by Scaled Composites, the GlobalFlyer will be piloted by Steve Fossett, a sportsman and holder of numerous aviation records including the first solo balloon flight around the world. It is powered by a single Williams International turbofan. Rutan designed and built the Voyager, which completed the first nonstop flight around the world in 1986 with his brother Dick as pilot and Jeana Yeager as copilot.--Perry Flint
