Sir Richard Branson

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“I think it’s quite great to set yourself a big challenge, and then you’ve got another reason for keeping fit.”

Virgin_Group

Sir Richard Charles Nicholas Branson, Kt (born 18 July 1950) is an English businessman and investor. He is best known as the founder of Virgin Group, which comprises more than 400 companies.[3]

At the age of sixteen his first business venture was a magazine called Student.[4] In 1970, he set up a mail-order record business. In 1972, he opened a chain of record stores, Virgin Records, later known as Virgin Megastores. Branson’s Virgin brand grew rapidly during the 1980s, as he set up Virgin Atlantic and expanded the Virgin Records music label.

According to Forbes, Branson has an estimated net worth of US $4.9 billion.[2]

Early life

Branson was born in Blackheath, London, the eldest of three children born to barrister Edward James Branson (1918–2011), and Eve Branson (born 1924), a former ballet dancer and air hostess.[5][6] Branson has two younger sisters.[7] His grandfather, the Right Honourable Sir George Arthur Harwin Branson, was a judge of the High Court of Justice and a Privy Councillor.[8] Branson was educated at Scaitcliffe School, a prep school in Berkshire, before briefly attending Cliff View House School in Sussex.[9] Branson attended Stowe School, an independent school in Buckinghamshire until the age of sixteen.[9] Branson has dyslexia and had poor academic performance as a student, and on his last day at school, his headmaster, Robert Drayson, told him he would either end up in prison or become a millionaire.[9] Branson’s parents were supportive of his endeavours from an early age.[10]

Career

Record business

Branson started his record business from a church where he ran The Student magazine. Branson interviewed several prominent personalities of the late 1960s for the magazine including Mick Jagger and R. D. Laing.[11]Branson advertised popular records in The Student and it was an overnight success.[12] Trading under the name “Virgin”, he sold records for considerably less than the “High Street” outlets, especially the chain W. H. Smith. Branson once said, “There is no point in starting your own business unless you do it out of a sense of frustration.” The name “Virgin” was suggested by one of Branson’s early employees because they were all new at business.[13] At the time, many products were sold under restrictive marketing agreements that limited discounting, despite efforts in the 1950s and 1960s to limit so-called resale price maintenance.[14]

Branson eventually started a record shop in Oxford Street in London. In 1971, Branson was questioned in connection with the selling of records in Virgin stores that had been declared export stock. The matter was never brought before a court and Branson agreed to repay any unpaid tax and a fine. Branson’s mother, Eve, re-mortgaged the family home to help pay the settlement.[13]

The Manor Studio, Richard Branson’s recording studio in the manor house at the village of Shipton-on-Cherwell in Oxfordshire.

Earning enough money from his record store, Branson in 1972 launched the record label Virgin Records with Nik Powell and bought a country estate north of Oxford, in which he installed a residential recording studio, The Manor Studio.[15] He leased out studio time to fledgling artists, including multi-instrumentalist Mike Oldfield, whose debut album Tubular Bells (1973) was the first release for Virgin Records and became a chart-topping best-seller.[16]

Virgin signed such controversial bands as the Sex Pistols, which other companies were reluctant to sign. It also won praise for exposing the public to such obscure avant-garde music as Faust and Can. Virgin Records also introduced Culture Club to the music world. In 1982, Virgin purchased the gay nightclub Heaven. In 1991, in a consortium with David Frost, Branson made an unsuccessful bid for three ITV franchisees under the CPV-TV name. The early 1980s also saw his only attempt as a producer—on the novelty record, “Baa, Baa, Black Sheep“, by Singing Sheep in association with Doug McLean and Grace McDonald. The recording was a series of sheep baa-ing along to a drum-machine-produced track and reached number 42 in the UK charts in 1982.[17]

In 1992, to keep his airline company afloat, Branson sold the Virgin label to EMI for £500 million.[18] Branson said that he wept when the sale was completed because the record business had been the very start of the Virgin empire. In 1996 he created V2 Records to re-enter the music business, owning 5% himself.[19]

Business ventures

Branson formed Virgin Atlantic Airways in 1984, launched Virgin Mobile in 1999, and Virgin Blue in Australia (now named Virgin Australia) in 2000. He was ninth in the Sunday Times Rich List 2006 of the wealthiest people or families in the UK, worth slightly more than £3 billion. Branson wrote in his autobiography of the decision to start an airline:

“My interest in life comes from setting myself huge, apparently unachievable challenges and trying to rise above them … from the perspective of wanting to live life to the full, I felt that I had to attempt it.”

In 1993, Branson took what many saw as being one of his riskier business exploits by entering into the railway business. Virgin Trains won the franchises for the former Intercity West Coast and Cross-Country sectors of British Rail.

Virgin acquired European short-haul airline Euro Belgian Airlines in 1996 and renamed it Virgin Express. In 2006, the airline was merged with SN Brussels Airlines forming Brussels Airlines. It also started a national airline based in Nigeria, called Virgin Nigeria. Another airline, Virgin America, began flying out of San Francisco International Airport in August 2007. Branson has also developed a Virgin Cola brand and even a Virgin Vodka brand, which has not been a very successful enterprise. As a consequence of these lacklustre performers, the satirical British fortnightly magazine Private Eye has been critical of Branson and his companies (see Private Eye image caption).[20]

A series of disputes in the early 1990s caused tension between Virgin Atlantic and British Airways, which viewed Virgin as an emerging competitor. Virgin subsequently accused British Airways of poaching its passengers, hacking its computers, and leaking stories to the press that portrayed Virgin negatively. After the so-called campaign of “dirty tricks”, British Airways settled the case, giving £500,000 to Branson, a further £110,000 to his airline, and had to pay legal fees of up to £3 million. Branson distributed his compensation (the so-called “BA bonus”) among his staff.[21]

On 25 September 2004, Branson announced the signing of a deal under which a new space tourism company, Virgin Galactic, will license the technology behind Spaceship One—funded by Microsoft co-founder Paul Allen and designed by legendary American aeronautical engineer and visionary Burt Rutan—to take paying passengers into suborbital space. Virgin Galactic (wholly owned by Virgin Group) plans to make flights available to the public with tickets priced at US$200,000 using Scaled Composites White Knight Two.[22] At the time, Branson said that he planned to take his two children, 31-year-old Holly and 28-year-old Sam, on a trip to outer space when they ride the SpaceShipTwo rocket plane on its first public flight then planned for 2014.[23]

Branson’s next venture with the Virgin group is Virgin Fuels, which is set to respond to global warming and exploit the recent spike in fuel costs by offering a revolutionary, cheaper fuel for automobiles and, in the near future, aircraft. Branson has stated that he was formerly a global warming sceptic and was influenced in his decision by a breakfast meeting with Al Gore.[24]

On 21 September 2006, Branson pledged to invest the profits of Virgin Atlantic and Virgin Trains in research for environmentally friendly fuels. The investment is estimated to be worth $3 billion.[25][26]

On 4 July 2006, Branson sold his Virgin Mobile company to UK cable TV, broadband, and telephone company NTL/NTL:Telewest for almost £1 billion. A new company was launched with much fanfare and publicity on 8 February 2007, under the name Virgin Media. The decision to merge his Virgin Media Company with NTL was to integrate both of the companies’ compatible parts of commerce. Branson used to own three-quarters of Virgin Mobile, whereas now he owns 15 percent of the new Virgin Media company.[27]

In 2006, Branson formed Virgin Comics and Virgin Animation, an entertainment company focused on creating new stories and characters for a global audience. The company was founded with author Deepak Chopra, filmmaker Shekhar Kapur, and entrepreneursSharad Devarajan and Gotham Chopra. Branson also launched the Virgin Health Bank on 1 February 2007, offering parents-to-be the opportunity to store their baby’s umbilical cord blood stem cells in private and public stem-cell banks.

In June 2006, a tip-off from Virgin Atlantic led US and UK competition authorities to investigate price-fixing attempts between Virgin Atlantic and British Airways. In August 2007, British Airways was fined £271 million over the allegations. Virgin Atlantic was given immunity for tipping off the authorities and received no fine—a controversial decision the Office of Fair Trading defended as being in the public interest.[28]

On 9 February 2007, Branson announced the setting up of a new global science and technology prize—The Virgin Earth Challenge—in the belief that history has shown that prizes of this nature encourage technological advancements for the good of mankind. The Virgin Earth Challenge will award $25 million to the individual or group who are able to demonstrate a commercially viable design that will result in the net removal of anthropogenic, atmospheric greenhouse gases each year for at least ten years without countervailing harmful effects. This removal must have long-term effects and contribute materially to the stability of the Earth’s climate. Branson also announced that he would be joined in the adjudication of the prize by a panel of five judges, all world authorities in their respective fields: Al Gore, Sir Crispin Tickell, Tim Flannery, James E. Hansen, and James Lovelock.

In July 2007, Branson purchased his Australian home, Makepeace Island, in Noosa.[29] In August 2007, Branson announced that he bought a 20-percent stake in Malaysia’s AirAsia X.[30]

Branson in April 2009 at the launch of Virgin America inOrange County, California.

On 13 October 2007, Branson’s Virgin Group sought to add Northern Rock to its empire after submitting an offer that would result in Branson personally owning 30% of the company and change the company’s name from Northern Rock to Virgin Money.[31] The Daily Mail ran a campaign against his bid and Vince Cable, financial spokesperson for Liberal Democrats’, suggested in the House of Commons that Branson’s criminal conviction for tax evasion might be felt by some as a good enough reason not to trust him with public money.[32]

On 10 January 2008, Branson’s Virgin Healthcare announced that it would open a chain of health care clinics that would offer conventional medical care alongside homoeopathic and complementary therapies, a development that was welcomed by Ben Bradshaw, the UK’s health minister.[33]

Plans where GPs could be paid for referring National Health Service (NHS) patients to private Virgin services were abandoned in June 2008. The BMA warned the plan would “damage clinical objectivity”, there would be a financial incentive for GPs to push patients toward the Virgin services at the centre.[34] Plans to take over an NHS Practice in Swindon were abandoned subsequently, in late September 2008.[35]

In February 2009, Branson’s Virgin organisation were reported as bidding to buy the former Honda Formula One team. Branson later stated an interest in Formula One, but claimed that, before the Virgin brand became involved with Honda or any other team, Formula One would have to develop a more economically efficient and environmentally responsible image. At the start of the 2009 formula one season on 28 March, it was announced that Virgin would be sponsoring the new Brawn GP team,[36] with discussions also under way about introducing a less “dirty” fuel in the medium term.[37] After the end of the season and the subsequent purchase of Brawn GP by Mercedes Benz, Branson invested in an 80% buyout of Manor Grand Prix,[38][39] with the team being renamed Virgin Racing.

Branson and Tony Fernandes, owner of Air Asia and Lotus F1 Racing, had a bet for the 2010 F1 season where the team’s boss should work on the winner’s airline during a charity flight dressed as a stewardess. Fernandes escaped as the winner of the bet, as Lotus Racing ended tenth in the championship, while Virgin Racing ended twelfth and last. Branson kept his word after losing the bet, as he served his duty as a stewardess on an Air Asia flight between Perth and Kuala Lumpur on 12 May 2013.[40]

Branson at the Time 100 Gala in May 2010

In 2010, Branson became patron of the UK’s Gordon Bennett 2010 gas balloon race, which has 16 hydrogen balloons flying across Europe.[41] In April 2010, Branson described the closure of large parts of European airspace owing to volcanic ash as “beyond a joke”. Some scientists later concluded that serious structural damage to aircraft could have occurred if passenger planes had continued to fly.[42]

In April 2012 Virgin Care commenced a five-year contract for provision of a range of health services which had previously been under the aegis of NHS Surrey, the local primary care trust.[43] By March 2015 Virgin Care were in charge of over 230 services nationwide.[44]

In July 2012, Branson announced plans to build an orbital space launch system, designated LauncherOne.[45] Four commercial customers have already contracted for launches and two companies are developing standardised satellite buses optimised to the design of LauncherOne, in expectation of business opportunities created by the new smallsat launcher.[46]

In August 2012, the franchise for the West Coast Main Line, managed by Virgin Rail since 1997, came to an end. The contract was awarded to FirstGroup after a competitive tender process overseen by the Department for Transport. Branson had expressed his concerns about the tender process and questioned the validity of the business plan submitted by FirstGroup. When Virgin Rail lost the contract, Branson said he was convinced the civil servants had “got their maths wrong”. In October, after an investigation into the bidding process, the deal was scrapped. The Transport Secretary announced there were “significant technical flaws” in the process and mistakes had been made by transport staff. Virgin Rail continue to operate the West Coast line.[47]

In September 2014, Branson announced his investment in drone company 3D Robotics stating, “It’s amazing to see what a little flying object with a GoPro attached can do. Before they came along the alternative was an expensive helicopter and crew. I’m really excited about the potential 3D Robotics sees in drones. They can do a lot of good in the world, and I hope this affordable technology will give many more people the chance to see our beautiful planet from such a powerful perspective.”[48]

World record attempts

A 1998 attempt at an around-the-world balloon flight by Branson, Fossett, and Lindstrand ends in the Pacific Ocean on 25 December 1998.

Branson made several world record-breaking attempts after 1985, when in the spirit of the Blue Riband he attempted the fastest Atlantic Ocean crossing. His first attempt in the “Virgin Atlantic Challenger” led to the boat capsizing in British waters and a rescue by RAF helicopter, which received wide media coverage. Some newspapers called for Branson to reimburse the government for the rescue cost. In 1986, in his “Virgin Atlantic Challenger II”, with sailing expert Daniel McCarthy, he beat the record by two hours.[4] A year later his hot air balloon “Virgin Atlantic Flyer” crossed the Atlantic.[49]

In January 1991, Branson crossed the Pacific from Japan to Arctic Canada, 6,700 miles (10,800 km), in a balloon of 2,600,000 cubic feet (74,000 m3). This broke the record, with a speed of 245 miles per hour (394 km/h).

Between 1995 and 1998 Branson, Per Lindstrand and Steve Fossett made attempts to circumnavigate the globe by balloon. In late 1998 they made a record-breaking flight from Morocco to Hawaii but were unable to complete a global flight before Bertrand Piccard and Brian Jones in Breitling Orbiter 3 in March 1999.

In March 2004, Branson set a record by travelling from Dover to Calais in a Gibbs Aquada in 1 hour, 40 minutes and 6 seconds, the fastest crossing of the English Channel in an amphibious vehicle. The previous record of six hours was set by two Frenchmen.[50] The cast of Top Gear, Jeremy Clarkson, James May and Richard Hammond, attempted to break this record in an amphibious vehicle which they had constructed and, while successfully crossing the channel, did not break Branson’s record. After being intercepted by the Coast Guard and asked what their intentions were, Clarkson remarked “..our intentions are to go across the Channel faster than ‘Beardy’ Branson!”. The Coast Guard wished them good luck and left.[51]

In September 2008, Branson and his children made an unsuccessful attempt at an Eastbound record crossing of the Atlantic ocean under sail in the 99 feet (30 m) sloop Virgin Money.[52] The boat, also known as Speedboat, is owned by NYYC member Alex Jackson, who was a co-skipper on this passage, with Branson and Mike Sanderson. After 2 days, 4 hours, winds of force 7 to 9 (strong gale), and seas of 40 feet (12 m), a ‘monster wave’ destroyed the spinnaker, washed a ten-man life raft overboard and severely ripped the mainsail. She eventually continued to St. George’s, Bermuda.[53]



This profile is partly adapted from a Wikipedia entry on Richard Branson, available under the Creative Commons Attribution-ShareAlike License.

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