Passenger Trains > Branson is suing Brightline

 Virgin’s Branson Goes to Court Over US Train VentureRichard Branson is suing a former partner that pulled out of a deal with Virgin because it claimed the pandemic had undermined the brand’s standing. Brightline, a private U.S. passenger rail system, reneged in July, arguing Virgin was “no longer of high-quality status,” after COVID-19 grounded its planes and Branson had to inject new capital. Brightline had previously agreed to rebrand its Florida service and a new route from Las Vegas to Southern California as Virgin Trains USA. In his suit, Branson called it “an opportunistic pretext” for Brightline to get out of the partnership.

More information from the BBC: https://www.bbc.com/news/business-56317444

Virgin Australia isn't exactly highly reputed these days either.

Part of the backstory on Branson / Virgin suing BrightLine is the situation at Port of Miami.  In short, Virgin Cruises made a deal with the Port of Miami for a new docking facility at the crowded port. This luxury facility would also be the terminus for Virgin / BrightLine's passenger service to the Port.

When the Port asked Sir Richard to put up the cash required, and begin construction on the facility, neither happened. That preceded the split between his lordship and BrightLine,  I believe.  I'm not sure where the ship construction schedule is now, but I understand it was substantially delayed.

Last gasp from someone who is going down.

Yeah, his 15 minutes are up. No one under 30 knows who he even is. 

masterphots Wrote:
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> Virgin Australia isn't exactly highly reputed
> these days either.

Virgin Australia (formerly V Australia and Virgin Blue) entered administration (bankruptcy) last year as the pandemic slashed demand for flights.  It's permanently ceased all long-haul service and has retreated back to just domestic flights in Australia.  Virgin Atlantic also filed for bankruptcy; prior to COVID-19 it was being significantly propped up with investments by Delta Air Lines.  Virgin America was sold to Alaska Airlines a few years ago.  As Lackawanna484 notes, Virgin Cruises seems to be significantly delayed.  No idea the current status of Virgin Hotels.

The Virgin brand really seems geared towards the two industries that have arguably been hit hardest by the pandemic (travel/hospitality).  But even prior to that you could make the argument the brand was starting to slip.  Maybe this year will bring some good news for Virgin Galactic if they actually get their commercial spaceflights up and running. 

 

ctillnc Wrote:
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> Yeah, his 15 minutes are up. No one under 30 knows
> who he even is. 

Yes.  I had a close up view of the Branson process at Natirar, a resort in the area of Peapack Gladstone on the NJ Transit Gladstone Line.

The local developer of a luxury restaurant and hotel had extreme difficulty with the local planning and zoning board. Several years worth. Sir Richard swept in, and announced the resort would bear his name, and be part of his Luxury Collection of healthy resorts. Provide 300 jobs,and cascades of tax money. Overseen by the person who runs his Jamaica flagship property. Inquiries from mega-wealthy people who wanted to be part of the development. Huge demand. Huge! Even for a real estate developer, this was a lot.

The board rolled over, and approved his property, alhough he was taken off the deed since he wouldn't provide tax returns or income statements needed for the liquor license. The Ninety Acres restaurant has won many awards, and the resort seems to be in good shape.  Sir Richard was bought out, seemingly for a goodly sum, and  moved on.  Many elements of the BrightLine saga echo this transaction.

Lackawanna484 Wrote:
-------------------------------------------------------
> ctillnc Wrote:
> --------------------------------------------------
> -----
> > Yeah, his 15 minutes are up. No one under 30
> knows
> > who he even is. 
>
> Yes.  I had a close up view of the Branson
> process at Natirar, a resort in the area of
> Peapack Gladstone on the NJ Transit Gladstone
> Line.
>
> The local developer of a luxury restaurant and
> hotel had extreme difficulty with the local
> planning and zoning board. Several years worth.
> Sir Richard swept in, and announced the resort
> would bear his name, and be part of his Luxury
> Collection of healthy resorts. Provide 300
> jobs,and cascades of tax money. Overseen by the
> person who runs his Jamaica flagship property.
> Inquiries from mega-wealthy people who wanted to
> be part of the development. Huge demand. Huge!
> Even for a real estate developer, this was a lot.
>
> The board rolled over, and approved his property,
> alhough he was taken off the deed since he
> wouldn't provide tax returns or income statements
> needed for the liquor license. The Ninety Acres
> restaurant has won many awards, and the resort
> seems to be in good shape.  Sir Richard was
> bought out, seemingly for a goodly sum, and 
> moved on.  Many elements of the BrightLine saga
> echo this transaction.

I have no idea have this parallels the brightline sitution, other than it involves sir richard.   Thanks for some actual facts about the port of MIA issue.   TO still needs an "opinion" thread, so I can ignore all the "old lazy guys with more opinion than talent" easily.
 

I think most of his problems stem, like so many others, from Covid.

Bill Deaver
Tehachapi, CA

Gotta disagree here. The problem is mostly just greed. 

march_hare Wrote:
-------------------------------------------------------
> Gotta disagree here. The problem is mostly just
> greed.

Yeah. COVID just exposed the scheme quicker than expected. Glad you don't live in a bubble.

Sir Branson wanted to use Brightline's "plans" to help the Virgin brand, whether by hotel (Las Vegas + XpressWest), cruises (Miami + Brightline). Greed, but nothing out of the ordinary. Virgin name was supposed to be used for the abandoned IPO of Virgin Trains.

Brightline's "parent" is Fortress Group, isn't it? Off topic, but Softbank buying Fortress wasn't exactly kosher, if people have examined it closely, as if Softbank (big money) was suckered into the purchase. Wonder if the same tactic was used to sucker Sir Branson to participate, hence him suing Brightline?

Don't think it's simply a matter of "last gasp of someone who is going down." I think it's personal (i.e. betrayal). Best wishes for Sir Branson, who has suffered some bad luck in the form of hurricane and pandemic.

Sir Richard's primary asset is his "brand", his reputation for trendy, glitzy, exciting stuff. Combined with "other people's money" he creates wonderful, exciting experiences, and he takes a generous slice for his licensing.  It's a pretty common model. Most developers use some variation on it.

His partner in Virgin Voyages is Bain Capital, the investmentand private equity  fund. My GUESS is the business plan called for the Scarlet Lady (first ship) to sail full loads at full prices, and then do a public offering to get Bain some return of capital, and pay for ships two and three. Bain was unwilling to put new money into a new Miami cruise terminal until cash flow was positive. A new cruise terminal wasn't in BrightLine's financing plan.With no cruise business in sight, BrightLine bailed.

BTW, Scarlet Lady is paying industry leading commissions for bookings on future trips, from what I can see

pdt Wrote:
-------------------------------------------------------
> Lackawanna484 Wrote:
> --------------------------------------------------
> -----
> > ctillnc Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > Yeah, his 15 minutes are up. No one under 30
> > knows
> > > who he even is. 
> >
> > Yes.  I had a close up view of the Branson
> > process at Natirar, a resort in the area of
> > Peapack Gladstone on the NJ Transit Gladstone
> > Line.
> >
> > The local developer of a luxury restaurant and
> > hotel had extreme difficulty with the local
> > planning and zoning board. Several years worth.
> > Sir Richard swept in, and announced the resort
> > would bear his name, and be part of his Luxury
> > Collection of healthy resorts. Provide 300
> > jobs,and cascades of tax money. Overseen by the
> > person who runs his Jamaica flagship property.
> > Inquiries from mega-wealthy people who wanted
> to
> > be part of the development. Huge demand. Huge!
> > Even for a real estate developer, this was a
> lot.
> >
> > The board rolled over, and approved his
> property,
> > alhough he was taken off the deed since he
> > wouldn't provide tax returns or income
> statements
> > needed for the liquor license. The Ninety Acres
> > restaurant has won many awards, and the resort
> > seems to be in good shape.  Sir Richard was
> > bought out, seemingly for a goodly sum, and 
> > moved on.  Many elements of the BrightLine
> saga
> > echo this transaction.
>
> I have no idea have this parallels the brightline
> sitution, other than it involves sir richard.  
> Thanks for some actual facts about the port of MIA
> issue.   TO still needs an "opinion" thread, so
> I can ignore all the "old lazy guys with more
> opinion than talent" easily.
>  

And wouldn't we just love it if TO had a "LIKE" button, so others of a like mind could show agreement/support of a post?  I certainly would.

Virgin, run by the flim flam man using OPM and Bain Capital, the creator of all those jobs (in China) when Mr. Romney was CEO.   I true match made in (enter your choice).