Branson: Behind the Mask (42 page)

Branson was thrilled that Governor Bill Richardson of New Mexico spent $210 million to build Spaceport America as the base for Virgin Galactic, although the rocket – seven years after its first deadline – is yet to reach space.

Branson’s goal in 2002 was to firmly establish Virgin in America. In his search for allies, he embraced environmentalism and aligned himself with Bill Clinton and Al Gore, pledging $3 billion in 2006 to fight climate change. Just how much has been handed over is uncertain. But the pledge, and Virgin Galactic, attracted Arnold Schwarzenegger, then governor of California, as a key Branson ally.

Branson’s hopes for American stardom, thanks to a Fox TV series called ‘The Rebel Billionaire: Branson’s Quest for the Best’, ended in a ratings flop.

Similarly, his bitter battle to protect Virgin’s privileges – by preventing collaboration between British Airways and American Airlines – was lost after Virgin pleaded guilty to participating in an illegal cartel.

Virgin’s financial crisis in 2000 was overcome after the company embraced Tom Alexander’s idea to launch low-cost mobile phones. Despite Branson’s familiar publicity stunts around the world, Virgin Mobile succeeded only in Britain.

Much of Branson’s success depended on his close relationships with politicians, not least Tony Blair, who supported the nomination of Branson for a knighthood in 1999.

In his search for new businesses, Branson repeatedly tried to break into banking. Unsuccessful in Australia and America, he relied on Jayne-Anne Gadhia, Virgin Money’s chief executive, to finally make the breakthrough in Britain after buying Northern Rock.

Just as the launch of Virgin Blue in Australia started strongly, Branson has so far found that stunts are no match for entrenched competitors in the British banking and Australian airlines sectors.

Unusually, Branson invested substantial sums of his own money in manufacturing renewable fuels. His reliance on Vinod Khosla, an American billionaire, gained him favourable publicity, not least with Gordon Brown when he launched a train powered by biodiesel in 2007. The project was soon abandoned, and Branson’s investments in renewable fuels have so far lost money.

Branson, however, gained huge and comparatively free global publicity by sponsoring Brawn’s winning Formula One team in 2009. Virgin’s foray into Formula One ended in tears – but not for Branson.

Branson appears to thrive on conflict, not least with British Airways. Posing as a pirate in July 1991, he enjoyed antagonising Lord King, then chairman of BA, by changing the livery on BA’s iconic Concorde to Virgin. Their battle climaxed in 2006 when Virgin executives admitted involvement in an illegal cartel with BA. Iain Burns and three other BA executives stood trial for price fixing. On the eve of Virgin executives testifying for the prosecution in 2010, the trial collapsed and the four were acquitted. The legacy was BA’s enduring hatred of Branson.

The two faces of Branson: the lovable hero promoting Virgin Media with Olympic sprint champion, Usain Bolt, in a successful campaign which the regulator criticised for misleading the public. His attempts to earn a similar fortune from privatised NHS services, however, have so far attracted only protests.