Arnie wants Virgin to set up California base

New California governor Arnold Schwarzenegger wants Richard Branson to base his planned new US cut-price domestic carrier in the state.

“Arnold Schwarzenegger rang me last night,” Branson said in Sydney today as his Australian discount airline, Virgin Blue, debuted on the Australian Stock Exchange.

“He’s trying to persuade us to go to Los Angeles and trying to see whether he can offer us some good tax breaks,” he added.

“We’ll see whether he can be as successful as he is in the films in persuading us to go there.”

The governor’s press office confirmed that talks did take place between Branson and the governor, saying Schwarzenegger encouraged Branson to bring the airline to Los Angeles because it would bring more jobs to California.

Branson said earlier this year his Virgin Group wanted to set up a low-cost US carrier by mid 2004 under the brand name Virgin USA.

Last month, economic development officials in Philadelphia said they were negotiating with Branson’s Virgin Group in an attempt to lure the new carrier to the city.

Branson said his group would be seeking partners to help foot the multi-million-dollar start-up bill for a new airline.