Tycoon courts Delta exec for start-up

0 Comments | USA TODAY, March, 2004 | by Marilyn Adams

British airline tycoon Richard Branson has been interviewing Delta Air Lines President Fred Reid to be CEO of a new low-fare carrier that could start flying next year from Boston, San Francisco or Washington, D.C.

Branson, chairman of Virgin Group, which owns London-based Virgin Atlantic Airways and budget carriers in Europe and Australia, has wanted for years to launch a low-fare carrier in the USA. Monday, Branson's top U.S. executive, Frances Farrow, confirmed the company is talking to Reid, a well-known industry figure.

Although Reid has never run a low-cost airline, "A person at a senior level in this industry has seen what has gone wrong," Farrow said. Last year, Delta posted a $1 billion net loss excluding special items.

This month, Virgin will...