Branson sees the toughest economy in "my lifetime"

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The global recession has plunged entrepreneur extraordinaire Sir Richard Branson into the toughest business climate of his life, but he said today that he sees it as another opportunity to make "great fortunes."

"There's no question it's the most challenging time that I've seen in my lifetime," Branson told hundreds of breakfast attendees today during an on-stage interview hosted by WBZ radio at Westin Copley Place. "If governments hadn't moved quickly to save the banks – and I think they should have saved Lehman – we would definitely be in a 1929 depression, and I think we just avoided that."

"Having said that, those companies that can expand during a recession should be doing so," said Branson, chairman of the Virgin Group, a diverse portfolio of 400 companies ranging from airlines to telecommunications to lending businesses.

Last week, Branson launched a new airline, V Australia, to compete with United Airlines and Qantas between California and Australia. And he came to town to kick off Virgin America's new service between Logan International Airport in Boston and airports in San Francisco and Los Angeles.

"That's creating a lot of new jobs at a time when people are grateful to have new jobs created," Branson said. "It's a great time to be expanding. The cost of buying new planes is very cheap. The cost of fuel is very cheap. Great fortunes can be made in times of recession. It's not easy, but everything is half the price it was a few months ago. So if you can, if you've got a bit of money, there's a fortune to be made."

And Branson sees a bit of money to be made on Virgin America's nonstop flights between Massachusetts and California. Bookings on these two Boston transcontinental routes for February through April are already higher than bookings on Virgin's other transcontinental routes out of New York and Washington, DC, the company said.

But Virgin is facing some turbulence. This week, Alaska Airlines asked the US Department of Transportation to investigate whether Virgin America is complying with federal foreign-ownership regulations. Branson, whose UK-based Virgin Group is a minority investor in Virgin America, poured more money into the US startup carrier in October to help offset its ballooning expenses from the summer's record jet fuel prices. He told the Globe he doesn't remember how much money he gave the airline, which launched in August 2007, but said it still qualifies as an American airline.

That's a message Branson was spreading yesterday in Boston. Branson, a businessman known for pulling publicity stunts, showed up at his Virgin America press conference, held at the carrier's Terminal B gates at Logan International Airport, dressed in high heels, a long blonde wig, and a red, white, and blue baby doll dress.

He looked into the sea of TV news cameras, mentioned Alaska's charges, and provided an answer: Branson turned around, pulled up his skirt, and showed the world the three American flags sticking out of his tights.
(By Nicole C. Wong, Globe staff)