The Hindu Business Line : Branson keen to invest in domestic airline

At a press meet following the airline's maiden flight from Heathrow to the city, he said, "I believe India could be the fastest growing economy in the world one day. It would be foolish for Virgin not to embrace India. If permissions were granted, I would like to personally invest in the domestic airline industry in India."

The `personal' nature of investment was because in his reckoning that appeared permissible under prevailing law. "It is slightly murky, not clear-cut," he said emphasising the need for clarity on regulation before a decision was made.

He agreed that there were a number of players already in or due for take off in the domestic airline market and consolidation was a possibility. But on the other hand, there is enormous potential for market growth and hence the likelihood that most players may pull through with even a few more able to sustain. "As always the best will survive," he said.

Sir Richard declined to name any company specifically spoken to in this context.

Including its three Mumbai flights, Virgin Atlantic operates 10 flights a week to India out of a total frequency of 40 flights operated by British carriers. A further set of 21 flights is due for negotiation at the next round of civil aviation talks between India and the UK, of which Virgin Atlantic's share is pegged at an ambitious 11.

These include additional flights to make its Mumbai leg a daily exercise and seven other flights to cities such as Bangalore, Hyderabad, Ahmedabad and Amritsar. Claimants from the British side for these additional flights include Virgin Atlantic, British Airways and British Midland. There is the potential for matters being referred to higher authorities should each party's claim be high.

"Ideally we would like somebody to take the lid off air service meetings and just free up the skies," Sir Richard said, pointing out that the beneficiary of greater competition was the customer who would see a drop in fares, greater availability of seats and more cities to fly to. In every other business he was in, it was possible to set up global operations free of excessive control. "Why should aviation be any different?" he asked.

From his other businesses, Sir Richard said, Virgin Mobile had a strong possibility of making it to India.

"I can't be specific, but we are in discussions," he said. The general tone of his Indian interest, spanning as it did from music to producing films, was, "everything is open."

About likely flights to India by Virgin's proposed A380 aircraft, he said, "I would expect that it would fly to India, but it would depend on aviation talks." If talks are restrictive then the A380 may be pushed in to service, if they are not, then double or triple services using smaller aircraft would be a better option.

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