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Airport News, "Cabotage (Eighth Freedom Rights): Virgin's Branson calls for deregulation of airways"
September 23, 1999Virgin's Branson calls for deregulation of airwaysBy John SchmeltzerChicago Tribune Staff WriterSomeday, Richard Branson hopes that Americans will be able to book flightsbetween American cities on foreign airlines, such as his Virgin AtlanticAirways. Similarly, he hopes Europeans will be able to book flights betweenEuropean cities on U.S. carriers.For the time being, at least, entrepreneurs such as Branson will have towait. Laws in the United States and Europe now forbid foreign companies fromowning airlines within their jurisdictions. Specifically, U.S. law prohibitsforeigners from owning more than 25 percent of a U.S. airline."The situation is ridiculous," said Branson, founder and chairman ofLondon-based Virgin Group, which owns Virgin Atlantic. "We should have openskies. Americans should be able to fly anywhere in Europe. Europeans shouldbe able to fly anywhere in the U.S."
So intent is Branson upon launching a U.S. version of Virgin Atlantic thathe says he has enlisted Sen. John McCain (R-Ariz.), chairman of the SenateCommerce Committee, to help change the law so he could set up a U.S.affiliate."I'd use a 100 percent American staff and it would be a boon to Boeingbecause we would buy their planes," said Branson during an interview thisweek about Virgin Atlantic's plans to begin service between Chicago andLondon on Nov. 1. "Domestic airlines would benefit from the competition."In any other industry we could set up a company here in the U.S. or anAmerican company could in Europe," said Branson, who has made repeatedefforts to fly around the globe in a hot-air balloon. He now refers tohimself as the "world's second-greatest balloonist," a reference to a pairof balloonists who circumnavigated the globe last summer.Don't look for domestic airlines to help Branson start his U.S. operation.Branson's efforts to launch service in Chicago have been tied up for yearsin the U.S.-British government talks over opening access to London'sHeathrow International Airport.American carriers have argued Branson and other British carriers shouldn'tbe allowed more access to the U.S. until British Airways is forced to giveup some of the landing and takeoff slots it holds at Heathrow.Late last year, Elk Grove Township-based United Airlines, in Branson'swords, "leaned on the Department of Transportation" to delay for another sixmonths the slots Virgin needed to land and take off at O'Hare."The lengths that United went to stop us from coming here shows that theremay be a certain amount of concern in even a major company like United," hesaid.*****************************************California Aviation Coalition: Airport News List E-mail CommandsTo subscribe to the Airport News List, send an email, from the email account you wish to receive your posts on, addressed to
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