Virgin sets bases for no-frills US airline

Virgin will base a new budget airline for the United States in San Francisco with its corporate headquarters in New York, it has been announced.

The airline will be a competitor to established carriers across the country.

Despite its reliance on air travel, the US has few no-frills airlines.

The announcement that Virgin would base its corporate headquarters in New York was made by city mayor Michael Bloomberg and state governor George Pataki.

The airline – which has not yet been named – will have several hundred employees in New York.

Virgin said it would also have more than 1,500 pilots, flight attendants, maintenance technicians and engineers based in San Francisco.

For almost a year, New York City competed with Boston, San Francisco, Philadelphia, Los Angeles, and Dulles, Virginia to become Virgin’s US home.

Virgin will receive enticing tax benefits in return for bringing the business to New York.

The benefits will be greater if Virgin decides to establish its headquarters in lower Manhattan, which is still being redeveloped following the devastating September 11 terrorist attacks.