Went from dropout to billionaire. Now Sir Richard is...Hoping to ride a Caribbean Wave By Curtis Rampersad Express 05.14.03 Not many investors have devised a growth strategy since September 11, 2001. Even fewer have sunk money into new regions, especially the Caribbean. But that's exactly what Sir Richard Branson, the flamboyant chairman of British-based Virgin Atlantic Airways, is doing with his airline's entry into Tobago. To hear Branson tell it, he's cashing in on a decline in US and transatlantic travel by buying younger, more fuel efficient aircraft at bargain prices from carriers that are cutting capacity. Always brash, outspoken, risk taking, Branson last week launched a direct weekly service between London Gatwick and Tobago and Grenada using a 422-seat Boeing 747-400 aircraft as part of a 50 per cent increase in capacity for the Caribbean by winter 2003. He's also made significant, low-risk investments in Singapore, adding to the already diversified Virgin group. It has units ranging from Virgin Coal soft drinks to Virgin Mobile cell phones and the Virgin MegaStore chain of compact disc and movie retailers. He even has a division that sells bridal gowns and has now launched low-cost carrier Virgin Blue which is soaking up market share in Australia. Granted, Branson, 52, is not entering "virgin territory" to coin an old phrase, by starting a service to Tobago and Grenada. Virgin Atlantic has operated in Barbados successfully since 1998 as well as to Antigua and St Lucia. But at a time when Caribbean and international carriers like BWIA, Air Jamaica and American Airlines are reeling from the effects of 9/11, the war in Iraq and now the SARS virus, Branson is deploying his airline in an expanded mode. The new route, he claims, means a projected annual economic benefit to Tobago and Grenada of more than US$7.5 million in increased trade, jobs and tourism. He is confident that it will give Tobago an unprecedented niche in the United Kingdom market and is hopeful that the route could bring in about US$10 million a year to Virgin Atlantic. The Caribbean has a powerful hold on him, Branson told Express Business in an interview at the Hilton Tobago in Lowlands as he launched Virgin Atlantic's service in Tobago last Monday. Less than an hour later, Branson would don crimson, sequined pants, an equally flaming flamenco shirt and costumed wings to start chipping next to music truck in a mas celebration alongside the Hilton's golf course. "I love the Caribbean, it's like my first home," a smiling, goateed, Branson explains, referring to his time spent in the British Virgin Islands. "(The Caribbean is) safe, there's beautiful weather, it's got everything going for it." He admits that Virgin Atlantic was affected by the lack of business travel and by SARS, the latest Gulf war, a recession and the 9/11 terrorist attacks. But with the friendliest staff (he also ranks BWIA's crews highly), Branson says that even with competition from United Airlines and British Airways, Virgin Atlantic has been one of the few profitable airlines in the world. Last week, the 19-year-old Virgin Atlantic posted a ten million pound sterling profit, adding to Branson's billionaire status. Not bad for a guy who was spanked by his teachers for poor grades and bad attitude and dropped out of school at 16. He recognises though that there's now a regional plan for the aviation industry. However, he's not certain that governments are qualified to run airlines. In fact, he points out that governments have terrible history as airline operators and suggests that this is not the way to go. BWIA is an integral part of that plan and there are considerations to merge the airline with another struggling carrier, Liat, to form a new regional entity. Skeptics scoff at his risk-taking and say he is as full of hot air as the balloons he's used to cross the Atlantic. But he says he's used to being the underdog and proven his critics wrong before. He acknowledges that BWIA, while needing new aircraft, is a good carrier that should start afresh but continue with its great staff. He expects to have competition from BWIA on the new routes and says he will compete very hard with any airline, but it will also be fair competition. A few years ago, Branson took British Airways to court and is now trying to take the soon-to-be-retired Concorde off their hands. In typical Branson fashion, he's offered one pound sterling for the supersonic jet which dates back to the late sixties. There's even talk that he will try to meet British PM Tony Blair to help the government convince BA to sell the Concorde to him. According to him, landing in Tobago last week, reminded Branson of how great the island's people are. "There's that famous hospitality and it's a beautiful island," he explains. As one of the few current success stories in aviation, Branson is willing to offer advice to another operator. Even a government. "While we don't normally get involved in companies already running, we would certainly talk to the government if there was a way for co-operation," he says referring to BWIA and the Patrick Manning administration. Entry into Tobago makes Virgin Atlantic the largest operator to the Caribbean as Branson explains that like Barbados, "we'll see how the business goes". Whatever he does, it is certain to be attention-grabbing. He's already demonstrated that he can turn a profit in, of all things, the airline industry and has brought tens of thousands of people to the Caribbean. With the new route, he is also cementing Virgin Atlantic's position in the region and notes that the Tobago service will not be seasonal but all year round. His motto in the business, like most other things is simple: "You've got to be competitive, you've got to be the best." *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.cso.gov.tt TnT Webdirectory: http://search.co.tt *********************************************************