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US domestic flights deal eludes Virgin


VIRGIN Atlantic has received disappointing feedback to its bid to launch US domestic flights next year.



Chairman Richard Branson went to Chicago last week to address senior US aviation officials but failed to make any progress with his plans.



US rules restricting foreign ownership of US carriers to 25% continue to block Branson’s proposals. Virgin wants total control.



British Midland chairman Sir Michael Bishop joined Branson in Chicago to represent the UK aviation industry in a debate on open skies in the next century. Sir Michael also wants access to the US market but his plans are also being blocked.



“We are not sure that anything positive came out of the talks,” said a Virgin spokesman.



Meanwhile, Virgin has received the backing of the Australian government to start domestic flights from Sydney in June.



n As Travel Weekly went to press, Branson was in India to meet aviation officials in a bid to gain support to start flights from Heathrow. He is pinning his hopes on new frequencies as UK-India negotiators are due to discuss an expanded bilateral agreement on January 31.


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