Sir Richard Branson says Virgin Atlantic has bright future in Austin, a city 'after my heart'

Calling Austin a city "after my heart," billionaire entrepreneur Sir Richard Branson says he sees a bright future for his Virgin Atlantic airline in rapidly growing Central Texas.

Branson, who founded Virgin Group and now serves as Virgin Atlantic’s chairman, stopped by Austin-Bergstrom International Airport this past week with a gaggle of British journalists in tow to celebrate and promote Virgin Atlantic's new nonstop Austin-to-London route.

The Austin-to-London flight is the first new route to a U.S. destination since 2017 for Britain-based Virgin Atlantic. The new route began on May 25, and demand is already strong enough that the airline plans to expand service from four days a week to every day starting next spring.

Branson told the American-Statesman he thinks the entrepreneurial and cultural opportunities in Austin and London will draw visitors from one city to the other.

“On the entrepreneurial side, you've got lots and lots of exciting new entrepreneurs creating lots of exciting businesses. London, obviously, is equally exciting in that respect, so we expect enormous traffic between the two,” he said. “My background is music, and you've got great music here. We just think Virgin (and Austin), the two are made for each other.”

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Juha Jarvinen, Virgin Atlantic’s chief commercial officer, said Austin has huge advantages both as a business and travel destination, with tech companies and entrepreneurs as well as its food and live music attractions.

“I would say the key advantage of Austin is currently the growth of Austin as an area. Many companies are either relocating or building second facilities here and California businesses are moving here,” Jarvinen said. “There is an entrepreneurial spirit that you feel in the city, and it's a fun city to visit as well... So we believe that there's a big opportunity from the UK to get people to visit Austin and Texas. It's something new and exciting."

Jarvinen said Virgin Atlantic reviewed the airport's expansion plans, which include a $4 billion capital program that will take about 10 years to complete, and found them sufficient to invest in the route. The Austin airport has struggled in recent months as air travel has rebounded from the pandemic with long security lines and passengers missing flights.

“We obviously have active conversations with the airport and see their future roadmap for future development,” Jarvinen said. “Our job as an airline is to bring the passengers and protect the growth opportunity. (Going daily next year) highlights the demand outlook that we foresee having. So then it's up to the local community and local city to invest in developing the airport because it is crucial that the customer experiences as smoothly as possible.”

Jarvinen also highlighted Virgin’s partnership with Delta Airlines on this route as a key part of launching the service. Branson said almost every airport in the world is struggling with staffing right now, not just Austin.

“I don't think we should hold back a city based on one or two teething problems,” he said. “We've estimated that something like 12 million extra dollars will come into the city from our flights. And that obviously will increase when we go daily. Hotels benefit, everyone does. It's very important for a city to have proper connections.”

More: Additional TSA agents are in place at Austin's airport; is that helping ease wait times?

'Sky's the limit' if Virgin Atlantic's Austin to London route is a success

Mayor Steve Adler welcomed Branson and other members of the partnership to Austin at a news conference Wednesday. Adler said Austin’s growth is illustrated in part by demand at the airport, which is expected to serve a record 22 million passengers this year.

“What this airport represents for a city like Austin, which is the fastest growing large metropolitan area in this country, is the opportunities that this growth, and this open door to the rest of the world, offers to the people who live here," Adler said. "And that's what these international flights represent.”

If the Austin to London route proves successful, Jarvinen said the “sky's the limit” for increasing service to multiple times a day out of Austin.

Mookie Patel, Austin-Bergstrom International Airport's chief business and finance officer, said the airport is excited to continue bringing back international routes as travel picks back up.

“We've welcomed back three international routes this year,” he said. “We've had an almost 30% increase in seat activity since COVID happened. So a 30% increase in just passenger traffic is very attributable to the metrics of the in migration that we've seen in our community."

Asked about fellow billionaire entrepreneur Elon Musk, who has brought significant investments into Austin with Tesla and his other companies, Branson said he sees both himself and Musk as businessmen who are drawn toward solving problems and investing in good ideas.

Branson hinted that he would not be opposed to investing in Austin businesses if the right opportunity presents itself.

“If anybody out there who's got a great idea for Austin, and they feel it's not been done well by other people, and they feel that Virgin could lend them a hand, we're always open to your idea,” he said.

Branson — who was knighted in 2000 — is founder of the Virgin Group, which controls more than 400 companies, including aerospace firm Virgin Galactic. His current estimated net worth is $4.1 billion, according to Forbes magazine.

This article originally appeared on Austin American-Statesman: Sir Richard Branson says Virgin Atlantic has bright future in Austin

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