Branson launches Virgin Atlantic flights to Australia

In a flurry of publicity gimmicks that have become his trademark, British entrepreneur Richard Branson launched the first Virgin Atlantic flights from London to Sydney today, vowing to break the hold British Airways and Qantas have on the long-distance route.

Branson, chairman of Virgin Atlantic, disembarked from the inaugural flight from London, balancing on the aircraft’s wing carrying a surfboard and flanked by models in bikinis. He later posed with a cardboard cut-out of Geoff Dixon, poking fun at an earlier declaration by the Qantas chief executive officer that Virgin would never fly to Australia.

So far the airline’s bookings for the Sydney-London flight with the stopover in Hong Kong were very good, Branson said.

“January and February bookings look extremely good,” Branson said, but added that the airline wouldn’t post a profit for at least three years.

Branson said he wanted to break the “cozy duopoly” Qantas and British Airways have maintained for years in Australia. His company has already filed a complaint with the Australian competition watchdog, accusing the two airlines of colluding to set prices and hurting competition.

“They have 75% of the business class market. They are allowed to collude on fares. They are allowed to sit in dark rooms and work out how they can take the passenger for a ride. Imagine Coca Cola and Pepsi working together like that,” Branson said.

He said the Australian Competition and Consumer Commission would rule on the London-based Virgin Atlantic’s appeal next week.

Branson, who owns 25% of Virgin Atlantic, also said he had no plans to sell his 25% stake in Australian domestic budget carrier Virgin Blue Holdings Ltd.

Separately, Branson said the US offshoot Virgin USA would start services “sometime” next year, but declined to give further details.