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News and Events
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June 14, 2004
SFO to Become Virgin's Low-Fare U.S. Hub

Virgin.Atlantic.plane.jpgSan Francisco International Airport (SFO) has been selected by Richard Branson's Virgin Airlines as its new low-fare American hub. New York City will be the company's 300-person administrative office base while SFO will benefit from 1,500 additional jobs from local mechnics positions to pilots, flight crews and other who will run the Virgin-branded airline flights.

In addition, the operation is expected to generate as many as 2,600 indirect jobs, which in total could mean a combined boost to the local economy of $153 million.

Since last October, Governor Arnold Schwarzenegger, San Francisco Mayor Gavin Newsom, state Senator Jackie Speier, and other Bay Area officials began aggressively courting Branson, the multimillionaire behind the Virgin Group Ltd.

A statewide poll of 900 registered voters taken June 4-5 found Governor Schwarzenegger clocking in with a 65 percent favorable rating. Arnold got his best marks (73 percent) for working with the state Legislature, improving the state economy (57 percent) and solving state budget issues (56 percent). The Virgin coup is a prime example of favorable rating.

The old international terminal will be used by Virgin to compete with Southwest and JetBlue. It will also pose as new competition for United Airlines. Frederick Reid, the former president and chief operating officer at Delta Air Lines Inc. as been brought on board to run the new operation, which has yet to be named. Reid, who is from the Bay Area, said "Culturally, New York and San Francisco reflect the Virgin brand's fun, dynamic style, making them both ideal places for us to recruit creative, skilled employees."

The company added that a "significant presence on each coast will enable the airline to create operational efficiencies."

Reid and the "mega"-entrepreneur Branson will need to find a group of investors before the airline takes flight from SFO. Legally in the U.S., Branson - who is a British citizen - can not have more than a minority stake in his new startup. Nor will there be any connection to Virgin Group's Atlantic Airways unit, other than co-branding opportunities. Branson has already been successful launching two other low-far airlines: Virgin Blue in Australia and Virgin Express in Europe.

From launching with one leased jumbo jet in June 1984 to becoming the UK's second largest long haul airline, now serving 22 destinations worldwide - Virgin Atlantic is a major British success story.

When we fly to London, there is no better carrier than Virgin Atlantic, especially their Business and Upper Class "Suite" service. Too bad they can't drop us off in Boston or Maine, next month. Perhaps next year. We shall be waiting and watching.

Before you know it Branson may be competing with Allen's SpaceShipOne space flights. But that's another story.

Meanwhile, he has just crossed the English Channel between Britain and France on an amphibious vessel - in record time.

Richard.Branson.Gibbs.Aquada.jpg

Today, the Virgin Group chief completed the 22-mile crossing on his shiny black Gibbs Aquada amphibious craft in 100 minutes and six seconds, well below the previous record of six hours held by two Frenchmen in the 1960s. Dressed in a dinner jacket and bow tie, the British tycoon drove his $115,000 James Bond-like sportscar — which transforms into a speedboat — straight into the Guinness Book of World Records.

Happy 20th Anniversary Virgin!

To healthy, adventuresome living -- on land, on the surface of and under the sea, and in the air!

~Jennifer King


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Posted by Jennifer King at June 14, 2004 08:26 AM

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