Now, India has a leader who leads by example: Richard Branson, Virgin Group

Calling Richard Branson busy would be stating the obvious. But for the owner of a conglomerate that controls an airline group, a telecommunications company, a seller of holidays and one which is planning to operate commercial space flights, he looks surprisingly laid-back. Branson has just returned from Mexico City — where he was discussing ‘drug mafia wars’ with the mayor — to celebrate Virgin Atlantic’s maiden flight with its brand new Boeing Dreamliner 787-900 to Atlanta. He cracks jokes about his businesses, his colleagues and his rivals at British Airways. He says his friend Tony Fernandes wants him as a stewardess in AirAsia India and that he is "considering the offer".

Branson had actually dressed up as a stewardess in an AirAsia X flight in 2012 after losing a bet on the results of Formula One racing. Branson is perhaps one of the prime examples of tycoons who are brand ambassadors of their own businesses, an image Vijay Mallya of Kingfisher Airlines tried to replicate. Branson’s Virgin Group hasn’t expanded in India as much as many would have expected it to. His airline will stop flying to Mumbai in December, one of the two flights it currently operates to the country, as it isn’t making money. This is a far cry from his plans to invest $300 million in the country, which he announced after a song and dance affair and a ride atop elephants in Mumbai in 2012.

The airline’s plans changed last year after it shifted focus to transatlantic routes, especially as a result of its partnership with Atlanta’s Air Delta, forged in 2012. Branson’s Virgin Mobile, which has an equal partnership with Tata Teleservices for its India operations, also hasn’t grown from being a fringe player in the market. In an interview with ET’s Anirban Chowdhury, Branson speaks about his optimism about the Indian market, his views on the Jet-Etihad combine and his sympathy for Mallya. Edited excerpts.

Do you think the change in government makes for a better business environment in India?

The impression from there is very positive. India was doing so well and then it languished for 3-4 years. Now it does seem that it will get back on track to doing really well. It is great to have someone in charge who has business experience. I am biased, but I think that helps. I think it's fantastic to have a leader who's trying to stamp out corruption. I think corruption rots society, especially if it starts from the top and goes all the way down. Now, you have a leader who leads by example. So (I am) very hopeful that India will welcome competition which is good for the consumer.

Does it encourage you to bring more of your businesses to India?

Certainly, it encourages me to do so. We will certainly be looking at India again and thinking what else we can do there. I am sure we will be trading a lot more with India in the future. We are putting a brand new $124 million plane (Boeing Dreamliner) in Delhi. So that's a good start.

Your ‘look West’ policy, so to speak, has you taking capacity out of the east. Don't you think it will be too late to expand there when you finally look at it again, especially with the growing dominance of Gulf carriers?

If we can get the British government to be brave and build extra runways at Heathrow, we will definitely do a lot more expansion in the east. For every slot that we need for a profitable route, we have to give up another route —that's really sad. I would much rather have stuck with Mumbai longer, especially at a time when India came out of its recession. But we had to move that slot somewhere else, and so we moved it somewhere else. But we will be back in Mumbai some day.




Overall, do you think the might and aggression of the Gulf carriers are a threat to western carriers?

I think Virgin Atlantic has got a very, very loyal following. We have about 50 planes to a Gulf carrier's 500 planes. On the specific routes that we fly, we still get our fair share of customers. People like our product. What the Gulf carriers have done is incredible. But we want competition and we will fly alongside them on certain routes.

One of your partners Etihad Airways (Virgin Australia) has picked up 24% stake in India’s loss-making carrier Jet Airways. Do you think it will be able to turn Jet around, going by what it’s done for your airline yet?

I don’t know enough about the details of the deal. Etihad has very deep pockets, but at the end of the day, it’s answerable to its shareholders. Jet is a good airline. So, my instinct is that they may well pull it off. There is a very aggressive new lowcost carrier in India. I have known them for a few years. They took care of Virgin Atlantic when we first came there. And they are going to give people a run for their money. So, Jet’s got formidable competition, but we will see what happens.

Do you mean AirAsia or IndiGo?

I mean IndiGo.

Vijay Mallya is often compared to you. He isn’t going through the best phases of his business. His airline is grounded and his liquor businesses are in heavy debt. Any words for him?

It’s obviously sad to see people stumbling. I am sure he (Mallya) will learn from his mistakes and pick himself up and tries all over again. I wish him and anybody who stumbles, well.

No comment on the comparisons?

Well, he’s got a beard... (laughs)