Richard Branson Reacts to Alaska Airlines' Decision to Retire Virgin America Brand
"Many tears are shed today," said the British billionaire.
Virgin Group founder and British billionaire Richard Branson has written a farewell letter of sorts to Virgin America after owner Alaska Airlines said it would stop using the Virgin brand, likely in 2019.
Seattle-based Alaska acquired Virgin America for $2.6 billion last year to expand beyond the Pacific Northwest. The airline said it plans to keep much of the "flair" of Virgin flights, such as free in-flight entertainment and mood lighting.
"Many tears are shed today, this time over Alaska Airlines’ decision to buy and now retire Virgin America," Branson wrote in a blog post that he tweeted about. "It is a sad (and some would say baffling) day."
But he also shared some words of inspiration. Read Branson's full letter below.
Dear Virgin America,
With a lot of things in life, there is a point where we have to let go and appreciate the fact that we had this ride at all. Many years ago, I shed tears over selling my beloved Virgin Records for $1 billion, which we needed to fight off British Airways’ Dirty Tricks campaign to try to put Virgin Atlantic out of business. Many tears are shed today, this time over Alaska Airlines’ decision to buy and now retire Virgin America.
It has a very different business model and sadly, it could not find a way to maintain its own brand and that of Virgin America.
When a company goes public, decisions are made that benefit the shareholders. In the best of times, they also benefit consumers. It remains to be seen what will happen now – for travellers – with fewer airlines in the US than ever. Being different and on a mission to truly reinvent an experience for the customer is increasingly rare in this business.
Remember that time from 2004 to 2007 when we leased planes that were sitting on the runway while we waited for the US government to give us a license so that we could make flying good again? Remember the naysayers who said you could not create an experience-driven airline in the US and survive? Remember launch day – August 8th, 2007 – when even an epic tornado didn’t stop our brilliant team getting our first flight an on-time departure?
Remember that time in 2014 when Dallas residents signed a petition to make sure city council members did the right thing and gave us two gates at Dallas Love Field? And the party we threw to thank Dallas for letting us fly? The legacy airlines kept trying to stop us flying. But we won over people in Newark, Chicago and Boston in similar fashion. We grew to more than 25 cities, swept every single major consumer travel award and became profitable. Even if the industry ‘experts’ did not, you and your guests always believed that an airline can stay in business by delivering a better flying experience.
We went through a lot together. And you were worth every minute, every penny (there were many!), every battle. We earned every loyal guest and fan. Every market was hard-won. The launch parties, the networking, the productivity on flights, the live concerts at 35,000 feet, the marriage proposals, the first in-flight wedding, the Oprah Skype to the plane! And who could forget that time in 2008 when I nearly ripped my arse jumping off the side of The Palms in Vegas?
It was a long and hard journey but in the end you are the best consumer airline in America. You invented concepts like ‘moodlighting’ and ‘on-demand food,’ you reinvented cabin amenities from seat-to-seat chat to Netflix in the sky. You chose warm and soothing pink to purple moodlighting that transitions based on outside light. You proved it is possible to run a business with a strategy that does not rely on low fares and a dominant position alone: you attracted premium flyers with a fun and beautiful guest experience. You created the world’s most loved safety video. You proved that it is possible to create a business with a terrific culture and a brand that people love.
You let Teammates think differently, and invested a lot of time and money into lifting your Teammates up with extraordinary training. You also gave back at every turn, even when you weren’t yet profitable. Investing in and operating one of the youngest and most fuel and carbon efficient fleets in the US. Starting mentoring conversations among seasoned and aspiring entrepreneurs. Putting the spotlight on adopting animals that need homes on the adorable annual Chihuahua airlift day. One of my favourite moments was joining KIPP students on a flight to watch Virgin Galactic’s WhiteKnightTwo fly alongside us; the flight inspired a new generation of engineers and pilots and ensured that an exciting future of transportation belonged to everyone. Throughout it all, you aimed to make flying good again - and you did.
To each of your brilliant Teammates, I know that you will continue to do great things, whether you stay on with Alaska or pursue a different path. Build a business that puts its people first. Work with partners who share your same progressive and inclusive values. Focus on delivering a great customer experience, and success will come. Make business a force for good. Stay positive; attitude is everything.
To our wonderful guests, I speak for everyone at Virgin America when I say we are eternally thankful. For believing in the little airline that could. For giving up your miles on “Blah airlines” - so you could fly us for the experience. For supporting us in every tussle we got in with the big guys. For believing that all airlines don’t have to be the same – and that experience matters.
You would not believe the number of people who tell me how much they love flying Virgin America. Keep expecting – and demanding – more from your airlines! If you miss flying Virgin America, you still have your beautiful sisters; Virgin Atlantic is starting service from London to Seattle next week, and Virgin Australia is starting direct service from Melbourne to Hong Kong the week after that. Virgin flies on.
Businesses come and go but beloved brands make lasting impressions and remain in your heart. Virgin’s purpose is to change business for good. We give humans permission to be and do the best they can. With that simple approach, Virgin builds companies around the world that get into your heart. We earn lasting loyalty and love that you don’t normally see for a bank or a health club or a small satellite launcher. We have all those and more. We have been busy building a number of new and exciting Virgin businesses in the US, and they are gathering pace. Later this year in San Francisco, we will open a Virgin Hotel and put on our first Virgin Sport US festival. We have just launched the Virgin Pulse Global Challenge, Virgin Voyages has started building the first of its three ships, and we continue to expand our space tourism and small satellite launch businesses in southern California. As an entrepreneur’s brand, Virgin is always starting new businesses. And we will not stop.
George Harrison once said, “All Things Must Pass.” This was the ride and love of a lifetime. I feel very lucky to have been on it with all of you. I'm told some people at Virgin America are calling today "the day the music died". It is a sad (and some would say baffling) day. But I'd like to assure them that the music never dies.