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storminpilot

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http://www.sfexaminer.com/article/index.cfm/i/081904n_virgin


Rumors cloud Virgin's plans

No confirmation on airline's proposed HQ in Burlingame.

By Ethan Fletcher | Staff Writer
Published on Thursday, August 19, 2004
URL: http://www.examiner.com/article/index.cfm/i/081904n_virgin
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BURINGAME -- Despite reports of an imminent deal, Virgin America officials have not confirmed their decision to locate their national headquarters in Burlingame over South San Francisco.

Since the low-cost carrier announced it would base its operations in the Bay Area, narrowing the list down to the two cities in recent months, Burlingame and South City have vied to host Virgin and the economic windfall that would result. Both cities have actively wooed the nascent airline, scheduled to begin service out of San Francisco International Airport by 2005.

Despite published reports stating that Virgin had decided on Burlingame as the winner of the HQ sweepstakes, the airline's representatives said no decision has been made.

"We haven't signed any contract," said Virgin America spokeswoman Stacy Geagan. "We are still negotiating with several companies, and no lease has been signed."

Geagan would not speculate on when or where the new location might be because doing so, she said, would hurt the airline's negotiating position.

"We are a low-cost air carrier, and we are trying to squeeze value out of every aspect of our operation and our headquarters location is no different," she said. "You will know as soon as the ink is dry."

A recent report in the San Francisco Business Times gave sources as saying that Virgin America was working on a deal with Equity Office Properties to locate in the Forbes Building, a five-story office building located in Bay Park Plaza at 555 Airport Blvd. Virgin, the report claimed, chose that office building over two other sites it was exploring in South City.

Virgin has said it hopes to provide upwards of 1,500 jobs by the time the operation is up and running next year.

Despite the reports and swirling rumors, Burlingame Mayor Rosalie O'Mahony said any speculation was premature.

"All I can say is that it's not true, because if it had happened, I would have heard about it," O'Mahony said of a deal for the Airport Boulevard building. "[The speculation] is not good for Burlingame or South City. The only people who have a right to say where they are going is Virgin America."

Nevertheless, O'Mahony said that she hopes Virgin chooses Burlingame. The Chamber of Commerce, at O'Mahony's behest, had wooed the airline by preparing a pamphlet detailing Burlingame's attractive qualities and offering incentives.
 

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