SIR
Richard Branson has admitted not launching a UK-based low-cost carrier at the
start of the budget airline boom is one of the biggest regrets of his career.
The
entrepreneur considered starting a no-frills carrier from the UK but was
worried customers would confuse another Virgin airline with the product offered
by Virgin Atlantic.
Sir
Richard decided to launch low-cost carriers in Europe and Australia with Virgin
Express and Virgin Blue instead.
He
said: “We decided not to enter the UK because we thought it would muddle
people’s image of the brand. I think that was a mistake. We shouldn’t have been
so worried about that and just done it.”
Both
EasyJet and Ryanair have gone on to become unmitigated success stories, posting
large profits and taking passengers from full-service carriers.
“They
are doing so well, I think we have missed the boat,” Sir Richard said.
He
now wants to launch a low-cost airline in the US to match the European and
Australian carriers, but needs the US to open its skies first.
He
said: “We would like to see the European Union negotiate an open-skies
agreement with the US where the whole of the US and Europe becomes one unit,
and any European airline can fly anywhere in the US and any US carrier can fly
anywhere in Europe.
“Hopefully
Virgin will get permission to set up in the US and therefore feed on people we
fly to New York.”
Meanwhile, Branson has offered to take over the
building and operation of Terminal 5 from BAA. He criticised the airport
operator for trying to bump up airline charges to fund the building of Terminal
5. He said: “If it hasn’t got the resources to build Terminal 5, I’ll take it
on. I would be happy to build it, operate it and open it up to other airlines.”