Richard Branson's Open Letter About The Virgin America Takeover

The thing I'm wondering about this is that presumably like most "Virgin" companies they only licensed the brand from the Virgin group and so that identity is not necessarily something that Alaska now owns lock stock and barrel.

Depending on the terms of that licence, once Virgin America is absorbed and disappears, there may be nothing stoping RB and co. from starting up another Virgin America from scratch all over again. Although selling at the top of the game and walking away is probably the sensible business plan.

I am wondering if this merger will lead to a new name too. From Virgin America to Virgin Alaska perhaps?

@Dennis i think they've already confirmed that VX will be folded into AS and the name will remain Alaska Airlines. Of course, anything can happen between now and when the deal closes and when they fully merge

Personally, I think that if he really wanted to Branson could have invested more money to save VX. Or Delta could use their influence with Virgin Atlantic to pick it up. Its possible that he didnt want to invest in VX any more than he already has but he also doesnt want to come across as not caring about the airline as well, which is why we have this letter

I think Sir Richard's reaction is a mix of both. Definitely bittersweet for him.

Branson has a history of starting up Virgin brands, often under subsidy situations or sanctioned monopoly, of which he then exits after a period, licensing the name branding. He is pretty much textbook serial entrepreneur, who tends to have the knack to sell more or less at the right time.

He may have not been able to stop it, but VX was developed and started peak prior to recession when people were flying, but legacy carriers had inferior product. Industry changed, legacy carriers merged and got better with newer planes. Low-oil and easy monetary policies have a perfect exit point.

http://www.theguardian.com/business/2016/apr/04/sir-richard-branson-virgin-deals

Apparently cried when selling Virgin Records. Given Napster, iTunes, streaming music event timeline, bet he was happy in retrospect.

Anyone knows what's Branson's ROI on his VX investment? I'm surprised they made it through the Great Recession and emerged as a profitable airlines.

I think its like anyone who starts and builds an empire brand. No matter what it is, you are always a bit sad to loose a part of it.

letter that just went out to Elevate members:
"today just four airlines control more than 80 percent of the U.S. market. By joining forces with Alaska Airlines – an airline that is also known for its leading operational performance and guest-focus – we are creating the best airline in North America and one with the size and market share necessary to compete in this consolidated environment."

He owns 22% of the airline, so what was he going to do about it? Crazy that in this globalized world, foreigners are still blocked from starting airlines in the US. Really puts into perspective why flights here cost more than Europe and Asia which have more open systems.

The FAA should be very strict on safety controls, but blocking ownership stops great foreign airlines from competing, bringing better product and prices to all.

Sir Richard's always had an emotional attachment to the airline business that he hasn't had with his other ventures, except for the record label. There were points where he could have flipped Virgin Atlantic but didn't, selling a minority stake to make sure he stays in control. I think this was very disappointing for him, although admittedly the money makes up for it somewhat.

The whole Virgin brand is like a bad lover. He will give you great foreplay then pulls out and let someone really bad taking over so you find yourself short of an orgasm or having to finish off yourself or go somewhere else. It is a frustrating business model he/ Virgin uses which now left me cold with his ventures as it is always sold off and managed badly. My two cents euphemism