Branson: Behind the Mask

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Branson: Behind the Mask Page 39

by Bower, Tom


  orders multiple spacecraft, 1

  planetarium party, 1

  promotion of Virgin brand, 1, 2, 3, 4, 5

  RB announces victory in space race, 1, 2

  RB cold-shouldered in California, 1

  RB as Father Christmas, 1, 2

  RB’s lack of technical knowledge, 1, 2

  RB’s speech on future, 1

  Rutan’s safety concerns, 1

  safety violations, 1, 2

  San Francisco photograph, 1

  Scaled relationship, 1

  scaling up spacecraft, 1, 2, 3

  sex in space, 1, 2

  Sgobba’s critique, 1

  Smithsonian exhibit, 1

  space hotels, 1, 2, 3, 4, 5

  SpaceShipTwo accident, 1

  test accidents, 1, 2

  timetable for first flight, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21

  trifling income, 1, 2

  ‘twice-daily’ flights, 1

  wins Ansari X Prize, 1

  as ‘world’s most expensive glider’, 1

  see also Mojave rocket accident; Scaled Composites; Spaceport America; WhiteKnight craft

  Virgin Green Fund, 1, 2, 3, 4, 5

  Virgin Group/Virgin Group Holdings AMP swaps risk for brand, 1

  attempt to break into US market, 1, 2, 3, 4, 5

  Bayliss as chief executive, 1

  brand enhanced by RB’s environmentalism, 1

  brand loses youthful allure, 1

  brand maintained by RB’s self–mythology, 1

  brand as RB’s cash card, 1

  as brand without legacy, 1

  brand’s role in Northern Rock bid, 1

  companies fail to advertise in The Project, 1, 2, 3

  companies fail to sponsor F1 team, 1

  and financial crisis, 1, 2, 3, 4, 5

  Forbes rating, 1

  loss-making companies, 1, 2, 3, 4, 5, 6, 7, 8, 9

  moves to Switzerland, 1

  ‘no grand vision’, 1

  as offshore, 1

  plans to sell companies, 1

  publicity of Rebel Billionaire, 1, 2

  ‘quality alliance’ of airlines, 1

  RB’s turnover, 1

  rebranding Northern Rock, 1

  rivalry between companies, 1

  space flight promotes brand, 1, 2, 3, 4, 5

  unifying through internet marketing, 1, 2

  Virgin companies pay for brand usage, 1

  Virgin Mobile’s owes debt to, 1

  Virgin Trains damages brand, 1, 2, 3

  withdraws from direct management, 1

  Virgin Health Bank, 1, 2

  Virgin Holdings, 1

  Virgin Interactive Publishing, 1, 2

  Virgin Media

  Bolt advert, 1, 2, 3

  BSkyB programme cut, 1

  challenge of beating Murdoch, 1, 2

  cost of Sky’s Premier League, 1

  failed bid for ITV, 1, 2, 3

  as lucky break, 1

  Malone buys, 1

  misleading broadband adverts, 1

  Nasdaq flotation, 1

  NTL merger, 1

  RB on, 1

  reacts to BSkyB adverts, 1

  subscriber numbers, 1, 2, 3

  unsuccessful US launch, 1

  Virgin Megastores, 1, 2, 3

  Virgin Mobile

  Alexander approaches RB, 1

  division of shares, 1

  flotation, 1, 2

  loss of customers, 1

  networks abroad, 1, 2, 3, 4, 5

  RB’s ‘nude’ crane stunt, 1

  and RB’s $3 billion eco–pledge, 1

  restores Virgin’s finances, 1, 2, 3, 4

  topless launch, 1

  victory over T-Mobile, 1

  Virgin Mobile Australia, 1, 2, 3

  Virgin Mobile USA, 1, 2, 3, 4

  Virgin Money Australia, 1, 2

  Virgin Money South Africa, 1

  Virgin Money UK

  Cancer Cover and Virgin Care, 1

  current-account charges, 1

  ending banks’ ‘rip-offs’, 1, 2

  Gadhia as chief adviser, 1

  gains while AMP loses, 1

  Lloyds branches bid, 1, 2

  and merger of all Virgin companies, 1, 2

  no banking experience, 1, 2, 3

  Northern Rock bid, 1, 2, 3, 4, 5, 6

  poor return compared with competitors, 1

  raising initial capital, 1

  RB’s lieutenants dismiss, 1

  RB’s TV adverts, 1, 2

  RBS branches bid, 1, 2, 3

  starts as Virgin Direct, 1

  state subsidies, 1

  see also Virgin One

  Virgin Money US, 1, 2, 3

  Virgin Money (yacht), 1

  Virgin Music

  RB resells shares, 1

  RB’s lack of ethics, 1, 2, 3, 4

  sale to EMI, 1, 2, 3

  Virgin Net, 1

  Virgin Nigeria, 1, 2

  Virgin Oceanic, 1, 2, 3

  Virgin Oil, 1

  Virgin One, 1, 2, 3

  Virgin Produced, 1

  Virgin Racing

  abandons F1, 1

  Ecclestone dismisses, 1

  exiled on paddock, 1

  formal unveiling, 1

  gains grid place, 1

  lacks sponsors and money, 1, 2

  Marussia deal, 1

  Monaco fiasco (2010), 1

  risk to Virgin brand, 1

  wind-tunnel short-cut, 1, 2, 3

  Virgin Radio, 1

  Virgin Records, 1, 2, 3, 4, 5, 6

  Virgin Review of the Environment, 1

  Virgin Trains

  Brown-RB trip, 1

  contract with Railtrack, 1, 2, 3, 4

  damages Virgin brand, 1, 2, 3

  ditches ‘moving block’ signalling, 1

  Eurostar fiasco, 1

  franchise suspended, 1

  gains and loses Cross Country franchise, 1, 2, 3, 4, 5, 6

  halo effect, 1

  Lowdon’s wireless internet, 1

  online petition on West Coast line, 1

  paid West Coast line compensation, 1, 2

  PDFH calculation, 1

  Pendolino trains, 1, 2, 3, 4

  price of tickets, 1, 2

  profits go offshore, 1, 2, 3, 4

  promoted as eco–venture, 1, 2

  PUG1 and PUG2 contracts, 1, 2, 3, 4

  RB lectures politicians, 1, 2, 3, 4, 5

  RB owns half, 1

  RB wants state funding, 1

  RB’s plans for lines abroad, 1

  reputation for poor service, 1, 2, 3, 4, 5

  Stagecoach as partner, 1, 2, 3, 4, 5

  state subsidies, 1, 2, 3, 4, 5, 6, 7

  Subordinated Loan Facility (SLF) quibble, 1, 2, 3, 4, 5

  unpleasant handover to Arriva, 1, 2

  use of ethanol mix, 1

  and Virgin Atlantic’s losses, 1

  West Coast franchise (1997), 1

  West Coast franchise (2012), 1

  West Coast franchise dispute (2013), 1

  see also Railtrack; West Coast line

  Virgin Unite, 1, 2, 3, 4

  Virgin Vie, 1, 2

  Virgin Vine, 1

  Virgin Wines, 1, 2

  Virtuoso (travel network), 1

  Vodafone, 1, 2, 3

  Volcker, Paul, 1

  V2, 1, 2, 3

  Wales, Jimmy, 1

  Walsh, Willie

  BMI purchase, 1, 2

  frustration with RB, 1

  predicts Virgin Atlantic’s disappearance, 1

  on RB, 1

  reacts to Fuel Price Surcharge conspiracy, 1, 2, 3

  Weiss, Shai, 1, 2, 3

  Welsh, Chris, 1, 2

  West Coast line

  British Rail develops trains, 1

  compensation paid to Virgin, 1, 2

  cost of replacing, 1, 2

  franchise to Virgin (1997), 1

  f
ranchise to Virgin (2012), 1

  franchise renewal dispute (2013), 1

  management merged with Cross Country, 1

  post-Hatfield speed limit, 1

  Westpac, 1, 2

  Whitehorn, Will

  on aircraft types, 1

  BA peace-making lunch, 1, 2

  confidence in Virgin Galactic, 1

  Corbett on, 1

  departs as chief executive, 1

  on galactic game–changer, 1

  at Gormley meeting, 1

  on ‘green’ rocket fuel, 1

  Homans’s Spaceport deal, 1, 2

  monitors Rutan, 1

  oil-price-spike ignorance, 1

  on peak oil, 1

  as rocket supremo, 1

  on sex in space, 1

  Virgin companies prediction, 1

  on Virgin Galactic as ‘green’, 1

  WhiteKnightOne, 1, 2, 3

  WhiteKnightTwo, 1, 2, 3, 4, 5, 6, 7, 8

  Whitesides, George, 1, 2, 3, 4, 5

  Whittinghill, George, 1

  Wilhelm, Jerry, 1

  Williams, Simon, 1

  Winfrey, Oprah, 1

  Winslet, Kate, 1

  Winsor, Tom, 1, 2, 3, 4

  Wirth, Nick, 1, 2, 3, 4, 5

  Witt, Stu, 1, 2, 3, 4

  Wojtowicz, Bob, 1

  World Climate Summit (2010), 1

  Wormold, Carl, 1, 2

  XCOR, 1, 2

  YarAdua, Umaru Musa, 1

  Yeager, Chuck, 1

  Youngblood, Donny, 1

  Yucaipa, 1, 2

  Zavvi, 1

  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.

  About the Author

  Tom Bower is an investigative historian, broadcaster and journalist. A former producer and reporter for BBC Television, he is the author of twenty books, including biographies of Robert Maxwell, Mohamed Fayed, Gordon Brown and Conrad Black. Broken Dreams, his investigation into corruption in English football, won the William Hill Sports Book of the Year Award in 2003 and his two most recent biographies – of Bernie Ecclestone and of Simon Cowell – were Sunday Times bestsellers. He lives in London.

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  HEROES OF WORLD WAR II

  MAXWELL: THE FINAL VERDICT

  NAZI GOLD

  BLOOD MONEY

  FAYED

  BRANSON

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  BROKEN DREAMS: VANITY, GREED AND THE SOURING OF BRITISH FOOTBALL

  CONRAD AND LADY BLACK: DANCING ON THE EDGE

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  Copyright

  First published in the UK in 2014

  by Faber and Faber Ltd

  Bloomsbury House

  74–77 Great Russell Street

  London WC1B 3DA

  This ebook edition first published in 2014

  All rights reserved

  © Tom Bower, 2014

  The right of Tom Bower to be identified as author of this work has been asserted in accordance with Section 77 of the Copyright, Designs and Patents Act 1988

  This ebook is copyright material and must not be copied, reproduced, transferred, distributed, leased, licensed or publicly performed or used in any way except as specifically permitted in writing by the publishers, as allowed under the terms and conditions under which it was purchased or as strictly permitted by applicable copyright law. Any unauthorised distribution or use of this text may be a direct infringement of the author’s and publisher’s rights, and those responsible may be liable in law accordingly

  ISBN 978–0–571–29711–5

 

 

 


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