Richard Branson's Flight Plan

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In spite of it all--long lines, delays and indignities--Americans still travel. Even with a recession, demand in the U.S. is expected to grow 5% a year. Worldwide tourist visits are expected to double, to 1.6 billion, by 2020. It's one of the great missed business opportunities in recent memory: there are more flights connecting the U.S. to the rest of the world than ever, but U.S. airlines are flying fewer of them. "America led the world in aviation, and they should still be No. 1," says Steve Ridgway, CEO of Virgin Atlantic. "America built the planes that made this possible."

Branson thinks he understands those intrepid travelers a little better than his competitors do. The only way to survive crushing fuel costs in a global slowdown, he says, is to be an airline that people seek out and will pay for. "You can't just make it a standard product," he says. He wants to give them, and his employees, something different, something memorable. So the Australian staff who've flown 19 hours for a press conference get their treat at sundown: Branson in full celebrity mode on the roof of the Hollywood Roosevelt hotel. Reclining like a pasha on an upholstered banquette, he downs champagne and chats up Daryl Hannah and an 18-year-old aspiring actress-environmentalist named Zelda Williams. He seems to enjoy himself but leaves the party early. He's got a plane to catch.

A New Model Airplane?

Branson believes Virgin America can make flying fun again and still make money. Here's what it does differently: [This article contains a table. Please see hardcopy of magazine.]

BIG U.S. AIRLINES VIRGIN AMERICA In-flight service Delete some services. Charge as much as you can for the rest Charge for the things that enhance the trip, like good food Routes Lose money on hub-to-hub flights. Earn it on the feeder business Fly point to point to cities with high business and leisure traffic International links Try to create seamless global travel through alliances or investments One brand, many airlines, each tailored to its local market