Branson plans no-frills US airline

Richard Branson is considering starting up a low-cost airline based in the United States, it was reported today.

The billionaire Virgin tycoon has been in talks with new California governor Arnold Schwarzenegger to negotiate the possibility of starting up the business in Los Angeles.

Sir Richard has had plans for a low-cost airline for several months. It would be called Virgin USA, and create around 1,500 jobs.

Final plans for the venture are expected within six weeks.

According to the Los Angeles Times newspaper, Sir Richard wrote to Schwarzenegger this week, saying: “We are considering Los Angeles within our plans.”

The pair met earlier this year on the film set of Jackie Chan’s movie, Around the World In 80 Days, in which they had small roles.

Other suggested bases for the airline have been Boston, Philadelphia, San Francisco and Miami.

A spokesman for the governor confirmed the two men had met and said Schwarzenegger encouraged Sir Richard “to bring more jobs to California”.

No-one was immediately available at Virgin for comment.