Branson hints at new US airline venture after Alaska spat

Billionaire Richard Branson signaled he may jump back into the US airline business after tussling with Alaska Air Group over how long the carrier must pay royalties on his Virgin America brand. Alaska has to keep paying “unless we decide to start another airline. So, we’ll see what happens,” Branson said in an interview Thursday with Bloomberg TV. When asked if he would create a new carrier, he said, “watch this space.” The serial entrepreneur’s comments hint at a return to the US airline industry following Virgin America’s $2.6b sale to Alaska in December. Branson maintains he should be compensated for the brand through 2040. Alaska, which plans to retire the Virgin America name in 2019, has said it doesn’t need to pay for a brand it isn’t using. Branson could find room for a new US airline as the major carriers have held back the supply of seats in recent years and have been saddled with higher costs because of new labor deals, said Samuel Engel, an aviation consultant with ICF. “There’s always space for another airline in the US,” Engel said. “It is a competitive and dynamic market, and the consolidation that has taken place in the last 10 years that has run parallel with capacity constraint only increases that opportunity.”<br/>