To infinity... and beyond: Richard Branson on why Virgin Atlantic is on the up

He says that when he launched the airline in 1984, he worried that over time the crew would lose their distinctive sense of fun and humour. ‘But after 30 years, they are as delightful and passionate as ever.’

Virgin is also investing on the ground. There are new Clubhouses at JFK and Newark — airside this time instead of landside — where the food is posher and the spas bigger.

Virgin Atlantic is Branson’s favourite part of his Virgin empire. ‘I fly on the airline a lot. I love it and give my input. I always try to make suggestions about how we can improve things.’ But now aged 63 and a billionaire, he has stepped away from the cockpit. He is the airline’s president and Craig Kreeger was appointed chief executive last year, replacing Steve Ridgway.

Kreeger, 54, spent 27 years as a senior executive at American Airlines, including a six-year stint in London working on the BA/AA tie-up. Branson believes his knowledge of how to run a big trans-atlantic alliance will enable Virgin/Delta to beat BA/AA.

In his first 12 months, Kreeger has ‘cast a fresh eye on the business’, cut a layer of management and prepared a two-year recovery plan. ‘We will break even or make a profit this year,’ says Branson. ‘Next year, we will start to be very profitable again.’

Branson does not just want Virgin to get back in the black, he wants it to expand — if Heathrow, which is currently ‘full’, gets a new runway or two. The Airports Commission, led by Sir Howard Davies, which is investigating how to increase airport capacity in the South East, recently said a third runway at Heathrow would alleviate congestion. It also all but ruled out closing Heathrow and replacing it with a new £112 billion hub airport in the Thames estuary, dubbed ‘Boris Island’ after its most prominent supporter, London Mayor Boris Johnson.

‘A new runway at Heathrow is the best option because it’s what travellers want,’ says Branson. ‘If there are new slots at Heathrow, we would like to fly to South America, to mainland China and to Europe. I would like Little Red to fly to Glasgow, too. That will enable us to compete with BA on a lot of routes where they currently have no competition.’

Does he really believe a new runway at Heathrow will be built in, say, the next ten years? There is staunch opposition both in the local area and at Westminster. ‘I hope it is a lot less than ten years,’ he replies. ‘It should take no more than five years.

‘It is just so sad that we have come to a full stop in the big airports in the South East. All Virgin’s expansion in the past ten years has happened in America with Virgin America and in Australia with Virgin Australia. With extra airport capacity here, Virgin Atlantic — and the whole country — could be doing a hell of a lot better.’

There’s a problem with Branson’s big plans, of course. Delta is American, and US carriers have been criticised for their old aircraft, no-frills cabins and surly flight attendants. Branson knows this better than most: in 2007, he used it as an opportunity to launch a successful new business: Virgin America.

What’s to stop Delta, which is ten times the size of Virgin, overwhelming it with bland American corporate style and squeezing all the fun, humour and eccentricity out of a brand that prides itself on zigging while others zag?

‘Have you flown Delta recently? It’s a great airline,’ says Branson. After trousering £220 million from Delta, he has to say that. But he adds: ‘Virgin Atlantic is still relatively small. We fly to 34 destinations and employ 10,000 people, so we can move quickly. We will continue to be the most innovative airline.’

Maybe. But what about those who say that Virgin is too small to compete with global giants such as BA/AA, Emirates and Lufthansa, and will end up being swallowed whole by Delta?

‘First, I own 51 per cent of the airline and have no plans not to own 51 per cent of the airline, so we will stay independent. Second, people have been saying we are too small ever since we launched with a single plane. They said it again after ten years. And again after 20 years. They said it on our 25th birthday. And guess what? We are now 30 and we’re still here.’

With the airline into its fourth decade, does Branson have any plans to retire? He already devotes most of his time to Virgin Galactic and to philanthropic work, especially environmentalism. ‘I’ve no plans to walk away from work or the airline. I often talk about Virgin Atlantic as a daughter. Over the years I have watched her grow up. She’s now the same age as my daughter Holly. She means as much to me as anything. I’m still passionate about the airline and its future.’

Indeed, he’s so confident he and Virgin will be around for years to come that he recently accepted a bet from Willie Walsh, boss of IAG, BA’s parent company. Walsh said that if Virgin were still an independent airline in five years’ time, Branson could kick him in the bollocks.

‘I’ve come up with some pretty childish suggestions and stunts in my time but even I have not come up with something quite as childish as that one,’ Branson laughs. ‘I’m very happy to accept.’