Cat's Out Of The Bag

[EyeInTheSky]

Branson upbeat on US airline launch this year

January 09, 2004 (ATW) Virgin Atlantic Chairman Richard Branson told ATWOnline yesterday that he "very much hopes" to launch a US-based low-fare airline in 2004 and will be "very disappointed if we can't."

Speaking at Mojave Airport at the rollout of the Virgin Atlantic GlobalFlyer, which will attempt a solo circumnavigation of the globe later this year, Branson said Virgin will accept a minority ownership position in the new airline in hopes that US law will change in the future to permit it to have a majority stake. US law limits non-US voting equity to 25% and total foreign investment to 49%.

Separately, sources told ATWOnline that Virgin has narrowed its choice of locations for its proposed carrier to one of three cities: Boston, Washington or San Francisco. Branson declined to confirm this, however, stating only that the company is in discussions with "three, four, five cities."

He also said Virgin is evaluating two alternatives: Launch an all-new airline or acquire an existing operator. "It could go either way," he said, adding that the company is in discussions with an airline about the possibility of "carving off chunks of that operation." Singapore Airlines, which owns 49% of Virgin Atlantic, also is expected to invest in the new carrier. Two names begin considered are Virgin Red and Virgin USA. Branson said that despite the presence of Southwest Airlines, JetBlue and other low-cost carriers, there still is plenty of room for another low-fare airline.

Designed by Burt Rutan and built by Scaled Composites, the GlobalFlyer will be piloted by Steve Fossett, a sportsman and holder of numerous aviation records including the first solo balloon flight around the world. It is powered by a single Williams International turbofan. Rutan designed and built the Voyager, which completed the first nonstop flight around the world in 1986 with his brother Dick as pilot and Jeana Yeager as copilot.--Perry Flint

 

[Light Years]

No specific mention of US Airways. I wonder if he'd be interested in some of the best employees in the industry? I know of about 5000 or so unemployed flight attendants who are looking...

 

[usfliboi]

Your headline is a fabrication. This is exactly what i was referring to in another thread. There is no mention whatso ever about usair. Why would u intentionally do damage to our airline by putting your headline as if it was a deal? You do no one but yourself a favor when you headline that article that way .

 

[Woodbird]

http://story.news.yahoo.com/news?tmpl=stor..._assetsale_dc_5

"PLENTY OF INTEREST

The assets are being shopped around to various airlines including low-cost carriers and other parties including Richard Branson, the British airline entrepreneur, sources said."

 

[fatburger]

take it easy, fliboi.............

-fatburger-

 

[usfliboi]

its still sources said and speculation. Im taken it tissy fats

 

[tadjr]

I'm sure Sir Richard is looking at US along with every other carrier in the US (and some others abroad?) to see IF there is actually anything that makes sense to them right now. Not that the other carriers have lots of money to spend, but if something is attractive, might as well try to get it as cheap as possible now before its open and available for all. I've been hearing this rumour for over a month now.

Red really isnt my color, but the uniform couldnt be any worse than the pall bearer outfit we currenlty have. Sign me up!

 

[700UW]

A foreign entity cannot own nor control a us based carrier, it is against US law.

Once again, don't let facts get in the way.

 

[jimntx]

A foreign entity cannot own nor control a us based carrier, it is against US law.

Once again, don't let facts get in the way.

However, Sir Richard did say that he was willing to take a minority interest and work on getting Congress to change the law later. And, the only legal requirement is that a foreign person or corporation can not own a majority of the stock, isn't it? I don't believe that owning a controlling interest--say 25-35%--is forbidden.

My guess is that he will end up in the DCA-LGA-BOS corridor somewhere (maybe, PHL, but I doubt it). I'm also guessing that if he buys anything from US Airways or any other airline, it will be gates and and landing slots only. There are a god's plenty of airplanes sitting in the Western deserts available for sale. Also, since he has expressed a preference for an all-Boeing fleet, I don't doubt that the folks in Everett, WA would be willing to do some very attractive deals on new a/c.

 

[autofixer]

"The cat is out of the bag". This referred to the removing of the "Cat of Nine Tails" from its storage bag in the Royal Navy, as punishment was to be administered. The cat is in fact out of the bag and the First Mate is raring back to strike. Ouch!!!

 

[ITRADE]

A foreign entity cannot own nor control a us based carrier, it is against US law.

Once again, don't let facts get in the way.

IIRC they can certainly own 25% of an airline - possibly up to 49% if the law has been changed. There have been proposals to do just that.

Of course, folks have argued that Airborne Express/DHL is basically all owned by Deutsche Poste.

 

[EyeInTheSky]

Can you say Steve Fossett? Richard has rich American friends that are able to legally invest in such a venture.

 

[deltawatch]

Quote from Siegel "If there are some strategic partnerships that would enhance our financial standing, we must consider those as well." Is he talking about a deal with Virgin. Will the 60 new aircraft be flown by a Virgin spinoff?