From the WSJ.
http://online.wsj.com/article/0,,BT_CO_200...tml?mod=COMPANY
US Airways May Become Major Shareholder In Virgin USA
DOW JONES NEWSWIRES
March 23, 2004 7:01 p.m.
LONDON -- US Airways (UAIR) could become a major shareholder in the new low cost start-up Virgin USA, said Virgin Group (VGN.YY) Chairman Richard Branson Tuesday.
"US Airways does have some assets which we'd be quite interested in. If sonmething happens there, we might well find they'd become partners instead of us having equity partners. There might also be some equity partners as well but they (US Airways) would become a major shareholder," Branson said. He made his remarks to reporters at his London home Tuesday.
Virgin Group plans to take a 49% stake in the new U.S. carrier with the balance of the shares coming from equity partners, such as venture capitalists and staff, he said.
"We are not in any discussions with Virgin USA or any other Virgin representatives," a US Airways spokesman said late Tuesday.
Branson said the new company was in talks with an unnamed U.S. carrier about buying some of that carrier's airport slots. He told Dow Jones Newswires later Tuesday that Virgin USA had been in talks with more than one carrier about slots.
The new airline is expected to start operations early next year if not sooner, Branson said. A operations base has not yet been decided but the short list includes Los Angeles, San Francisco, Boston and Washington, D.C., he said.
In terms of aircraft, Virgin USA would start talks with both Boeing (BA) and Airbus (ABI.YY) within the next week over an order of about 30 planes. He said the planes were likely to be 737s or A320s. Separately, Bombardier (BBD.B.T) and Brazil's Embraer (EMBR4.BR) will compete for a regional jet order of about 20 planes, "but that's not this month", Branson said
