Branson May Start Cut-Rate US Airline
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Branson May Start Cut-Rate US Airline
It was reported today in a leading business paper that Richard Branson is looking to start a cut-rate airline in the U.S.
He has a team of people looking into this, being an entrepreneur he knows an opportunity when he sees one. They are waiting for the possibility of one or two U.S. carriers going out of business and recognize this only comes along once in a generation. Their time frame is the next 6 to 12 months to make a move.
This could be a good move for his company, the U.S. operation could act as a feeder for his international flights.
However, they will need a U.S. partner as airline ownership laws require not more than 25% on non-US owners.
He has a team of people looking into this, being an entrepreneur he knows an opportunity when he sees one. They are waiting for the possibility of one or two U.S. carriers going out of business and recognize this only comes along once in a generation. Their time frame is the next 6 to 12 months to make a move.
This could be a good move for his company, the U.S. operation could act as a feeder for his international flights.
However, they will need a U.S. partner as airline ownership laws require not more than 25% on non-US owners.
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Mr B's last foray into the u/s market was operating a DC3
from Mco to Keywest .Ask the poor sod (Ex laker) who put up the money for the operation, and lost a bundle when Mr B left him high and dry to pick up the bills.
from Mco to Keywest .Ask the poor sod (Ex laker) who put up the money for the operation, and lost a bundle when Mr B left him high and dry to pick up the bills.
TC
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DJ has, arguably, succeeded due to the collapse of one of the local incumbents. I guess he thinks if it worked in OZ, then it should work in the states!
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How about "Virgin RED"???
I agree if it is as successful as Virgin Blue in Austrailia, it will be truly exciting.
Branson is a much better CEO than most US airline CEOs.
I agree if it is as successful as Virgin Blue in Austrailia, it will be truly exciting.
Branson is a much better CEO than most US airline CEOs.
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Desk Driver - see first post this thread. However, with US airlines bleeding so much red ink, the US Government might like the idea of getting foreigners to pump money into the system instead of just leaving it up to Uncle Sam and thus relax ownership restrictions.
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Pssst!
The whisper is that Branson & George W have secretly done a deal! However, in order for the deal to go through Branson gave the Pres. naming rights...that's right, it's going to be called Virgin Bush!!!!
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So why are we getting excited about something that would'nt even be legal yet???
Surely the US are going to want to protect their own before allowing the foreign hordes in to pillage their domestic markets?
I'd be more excited by a 2nd runway at Gatwick first.
Surely the US are going to want to protect their own before allowing the foreign hordes in to pillage their domestic markets?
I'd be more excited by a 2nd runway at Gatwick first.
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... and the rumours just keep on coming
Every few months the rumour pops up that Branson has been talking to Atlantic Coast Airlines, based in Wasington-Dulles. They did just appoint an Airbus financing executive to their board.
BBB
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Cabotage Rights In USA?
If it were a fact that Branson were given such operating authority, ...then Biman Bangladesh, Air Kazakstan, Balkan and the rest of the Third World carriers...could all set up shop in the USA, fly choice domestic routes at bargain fares...and generate much sought after "hard currency." Eh?
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Glueball,
Maybe they could.
They have had that opportunity in Australia for a few years now.
Precisely ZERO foreign carriers have come in (aside from AirNZ buying an already going concern which subsequently went kaput).
DJ is not part of VS - but there would be nothing stopping it being so.
Anyway... QF and DJ are making good money on pretty heavily-trafficked domestic routes - so if Biman wanted to come , they could, probably pick up some qualified personnel, equipment and slots cheaply and earn the 'hard currency' you speak of.
But guess what? They haven't? And they can't, unless they can convince the local safety authority to give them an AOC.
So it's not a free-for-all.
Or are you indicating a lack of faith in the regulatory system to licence and oversee newcomers??
It is possible to perhaps not see much difference between a properly licenced and regulated Biman subsidiary operating in the US and repatriating 'hard currency' and certain American corporations flogging fast food in Dhaka and then paying out 'hard currency' to their shareholders back home. It's up to the punters to put their bums on the seats of their choosing. If it's good for the goose, mate...
Maybe they could.
They have had that opportunity in Australia for a few years now.
Precisely ZERO foreign carriers have come in (aside from AirNZ buying an already going concern which subsequently went kaput).
DJ is not part of VS - but there would be nothing stopping it being so.
Anyway... QF and DJ are making good money on pretty heavily-trafficked domestic routes - so if Biman wanted to come , they could, probably pick up some qualified personnel, equipment and slots cheaply and earn the 'hard currency' you speak of.
But guess what? They haven't? And they can't, unless they can convince the local safety authority to give them an AOC.
So it's not a free-for-all.
Or are you indicating a lack of faith in the regulatory system to licence and oversee newcomers??
It is possible to perhaps not see much difference between a properly licenced and regulated Biman subsidiary operating in the US and repatriating 'hard currency' and certain American corporations flogging fast food in Dhaka and then paying out 'hard currency' to their shareholders back home. It's up to the punters to put their bums on the seats of their choosing. If it's good for the goose, mate...
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DeskDriver,
I think those US Govt restrictions of foreign ownership are to protect offshore airlines from coming in and shutting down USA carriers; in my opinion, letting Sir Richard set up an airline would be a good thing, with lots of jobs for Americans. It should be allowed, and I hope it works.
Twenty years ago, Eastern/Braniff/TWA/PanAm were huge; today it is AA/UA/US/NW. In twenty more years, it could be Southwest/JetBlue/AirTran/VirginRed!!!
Or it could be this:
I think those US Govt restrictions of foreign ownership are to protect offshore airlines from coming in and shutting down USA carriers; in my opinion, letting Sir Richard set up an airline would be a good thing, with lots of jobs for Americans. It should be allowed, and I hope it works.
Twenty years ago, Eastern/Braniff/TWA/PanAm were huge; today it is AA/UA/US/NW. In twenty more years, it could be Southwest/JetBlue/AirTran/VirginRed!!!
Or it could be this:
