storminpilot
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http://www.ajc.com/wednesday/content/epaper/editions/wednesday/business_f38a1957114420e100f1.html
Briton seeks partner for low-cost U.S. airline
Bloomberg News -- Wednesday, November 5, 2003
Richard Branson, a flamboyant British billionaire and entrepreneur, said Virgin Group Ltd. and its partners may invest about $200 million to set up a low-cost airline in the United States next year.
Branson, whose Virgin Group would own 49 percent of the carrier and hold 25 percent of voting rights, is in talks with ''three or four'' possible airline and venture capital partners to own the other 51 percent, he told a London news conference.
''We haven't definitely decided which way we are going yet,'' he said. ''Some partners would bring in slots at key airports. Some would bring in money.''
Branson said he plans to continue discussions in New York.
Virgin Group is the parent of Virgin Atlantic Airways, which Branson founded.
The new carrier --- currently known as Virgin US --- will copy the model used by JetBlue Airways and Southwest Airlines. It won't compete on the same routes as those airlines.
Low-cost carriers have been generating profits, while full-service airlines have suffered losses following a decline in air travel.
Virgin USA's offices are in New York, and Frances Farrow has been appointed acting chief executive, Branson told the news conference at Heathrow Airport. Farrow has been general counsel for Virgin Atlantic Airways.
Branson said he's still in talks with Boeing and Airbus about which aircraft to purchase.
Branson's British airline, Virgin Atlantic, has been successful as a niche player on trans-Atlantic routes.
Branson said traffic is beginning to recover at Virgin Atlantic, the No. 2 full-service carrier in the United Kingdom. It is 51 percent owned by Virgin and 49 percent owned by Singapore Airlines Ltd.
''We are confident that there's a recovery taking place,'' Branson said in an interview. ''It hasn't meant airline prices have gone up.'' Branson said Virgin Atlantic is winning first- and business-class customers from competitor British Airways PLC and gaining market share from U.S. carriers.
Branson said he expects to decide early next year between Boeing 777s and Airbus A340-600s as he seeks to expand the Virgin Atlantic fleet.
Briton seeks partner for low-cost U.S. airline
Bloomberg News -- Wednesday, November 5, 2003
Richard Branson, a flamboyant British billionaire and entrepreneur, said Virgin Group Ltd. and its partners may invest about $200 million to set up a low-cost airline in the United States next year.
Branson, whose Virgin Group would own 49 percent of the carrier and hold 25 percent of voting rights, is in talks with ''three or four'' possible airline and venture capital partners to own the other 51 percent, he told a London news conference.
''We haven't definitely decided which way we are going yet,'' he said. ''Some partners would bring in slots at key airports. Some would bring in money.''
Branson said he plans to continue discussions in New York.
Virgin Group is the parent of Virgin Atlantic Airways, which Branson founded.
The new carrier --- currently known as Virgin US --- will copy the model used by JetBlue Airways and Southwest Airlines. It won't compete on the same routes as those airlines.
Low-cost carriers have been generating profits, while full-service airlines have suffered losses following a decline in air travel.
Virgin USA's offices are in New York, and Frances Farrow has been appointed acting chief executive, Branson told the news conference at Heathrow Airport. Farrow has been general counsel for Virgin Atlantic Airways.
Branson said he's still in talks with Boeing and Airbus about which aircraft to purchase.
Branson's British airline, Virgin Atlantic, has been successful as a niche player on trans-Atlantic routes.
Branson said traffic is beginning to recover at Virgin Atlantic, the No. 2 full-service carrier in the United Kingdom. It is 51 percent owned by Virgin and 49 percent owned by Singapore Airlines Ltd.
''We are confident that there's a recovery taking place,'' Branson said in an interview. ''It hasn't meant airline prices have gone up.'' Branson said Virgin Atlantic is winning first- and business-class customers from competitor British Airways PLC and gaining market share from U.S. carriers.
Branson said he expects to decide early next year between Boeing 777s and Airbus A340-600s as he seeks to expand the Virgin Atlantic fleet.