Branson to expand aviation empire to US

Virgin boss Sir Richard Branson is to expand his aviation empire to the United States, he announced today.

The business tycoon is restricted by American law but hopes to take a 49% financial share in a low-cost quality airline.

His State-side fleet – expected to be 15 to 20 planes – will not go under the Virgin brand but Sir Richard hopes to have it launched in the first half of next year.

He said: “We have been waiting for 20 years for the law to change (in America).

“We want a 49% economic share and will bring in another partner to get things going.”

Sir Richard said discussions were only in the early stages but the new airline would start from new rather than taking over an existing one.

“The best way of building and running an airline is to build it from scratch,” he said.

He added that it would be a quality low-cost service along the lines of the American airline Jet Blue.

Sir Richard’s announcement came as Virgin unveiled their new Upper Class Suite at a launch near Gatwick airport.

The glitzy affair opened with the Virgin boss – dressed as rapper Eminem - taking a chainsaw to the traditional British Airways first class seat.

Watched by two scantily-clad dancers, the dungaree-wearing tycoon triumphantly demolished the polystyrene BA model.

His new Virgin Upper Class Suite boasts a new concept – a separate seat and separate bed.

The leather seat, which can stay in the reclining position during takeoff and landing, flips into a completely flat bed which stretches to 6ft 7ins.

Passengers also get an adjustable foot stool which doubles up as a chair for another person to dine opposite or carry out an informal meeting.

Virgin has also expanded its luxury drinks bar and will offer passengers the option to eat when they want.

Other perks of the luxury service include complimentary limousines and on-board massage.

Sir Richard stressed that the cost of this new first class would stay at the same price as its original business fare.

He said: “We are simply saying we are introducing for the first time in our 20-year history a first class product but we will continue to offer it at a business class fare.”

He said the aim of the Upper Class Suite – which had been in development for three years – was to provide alternative luxury travel for people if Concorde was forced into retirement.

“We will keep battling to keep Concorde flying right to the bitter end,” he said.

“However, should we fail to do so, Concorde and other first class passengers will need a new super-luxury way of travelling.

“Virgin Atlantic’s Upper Class Suite will give them all that they need and cost thousand of pounds less.”

Virgin hopes to siphon off 4 to 5% of BA’s business travel and 10% of its first class travel in its first 12 months, he said.

Sir Richard expects the new first class, which has cost £50m (€71.2m) to develop will make £100m (€142.4m) in its first year.

He said the plans had been kept secret so that BA did not steal their ideas.

“We realised that we did not want anybody to get hold of the plans this time around,” he said.

The Virgin boss insisted that luxury travel was making a comeback and their innovation would be rewarded.

He said: “There are thousands of passengers that we think will switch to Virgin.

“The only way we can offer prices a lot lower is by getting more people to fly with us.”

The new Upper Class Suites will be introduced on Virgin flights this summer and should be fitted on all planes by autumn 2004.

At the launch, Sir Richard could not resist attacking BA’s plans to ditch Concorde and disclosed another slur campaign.

Virgin has issued posters of their aircraft bearing the slogan “BA cannot keep Concorde up”.

He maintained that his £5m (€7.1m) offer for BA’s five operational Concordes remained opened and reiterated his call for a summit between the two airlines to reach some arrangement to save the doomed airline.