In 2012, former British Airways boss Willie Walsh bet Sir Richard Branson that his airline, Virgin Atlantic, would not exist within five years.
It’s a bet Mr Walsh has completely lost, and MailOnline is watching this week as sir richard He got fully dressed into the pool of his Las Vegas hotel (see video) to celebrate Virgin Atlantic’s 40th birthday.
Once that dried, we sat down with the airline’s famously smart founder and CEO, Shai Weiss, to talk about the airline’s “secret sauce,” its most notable moments, and more…
Throughout the interview, one thing became clear: it is Virgin’s arrogance, its lack of fear and its mission for change that has brought the airline this far.
One of the most profound, Branson recalled, began with a simple change.
Please change
MailOnline asked Sir Richard what was his favorite ‘left field’ or unsuspecting airline decision that has had a profound impact over the past 40 years.
Simplicity can be brilliant.
Sir Richard said: “I always came home from my travels and put my change in a drawer, to which one day my wife said to me: ‘Why don’t you do something with all that change?’ Why don’t you donate it to someone?”‘
In 2012, former British Airways boss Willie Walsh bet Sir Richard Branson that his airline, Virgin Atlantic, would not exist within five years. Sir Richard is pictured above with Virgin Atlantic CEO Shai Weiss in Las Vegas, celebrating the airline’s 40th birthday.
From the exchange at this simple married person’s home an idea was born and Virgin Atlantic launched possibly the world’s first airline asking passengers for change at the end of each flight, resulting in more than £1 million ($1.2 million) in donations during the first year.
From there, many airlines followed, including BA, and now airlines annually donate untold millions of dollars to charity campaigns around the world.
Saddam Hussein and the most notable moment of the flight of the Virgin
When asked about the most notable moments in the airline’s history, there were many that involved ordinary passengers, but what stood out was the airline’s ability to help people and governments.
Branson recalled being moved by the hostage situation in Iraq in 1990 and immediately feeling a duty to help.
He wrote a letter, he admitted “shamelessly,” to Iraqi ruler Saddam Hussein asking for the release of foreign hostages who were young or sick.
To their surprise, Saddam Hussein accepted, after Sir Richard offered medical supplies for the Iraqi people as a gesture of exchange of goodwill.
“We’ve always been agile,” Sir Richard said, joking with Weiss (right) that they just make decisions and the team makes them like that… just like that.
Branson spoke by phone with Ted Heath, the former prime minister, to close the deal in person on the ground.
Virgin Atlanticwith Sir Richard on board, he flew a totally voluntary mission from Gatwick to Baghdad, an airport practically abandoned for more than two years and full of challenges.
Branson spoke of fear upon arrival, knowing that everything could go wrong, especially as hordes of soldiers marched onto the tarmac.
Like a real-life scene from the Hollywood film Argo, Sir Richard vividly remembers the mix of joy at the rescue and somber feeling as he reflects on those left behind.
The feeling of immense joy when the hostages cleared Iraqi airspace is something that, according to the tycoon, will always be present in his mind.
Virgin Atlantic’s first flight in 1984, from London Gatwick to New York, with passengers disembarking from Sir Richard’s Boeing 747-200 at Newark Liberty International Airport.
Commenting on the first flight (above), Virgin Atlantic said: ‘What a day that was. Joining our first customers were Richard and his family, plus a bunch of 80s celebrities, pop stars and journalists, and 60 cases of champagne. The rest, as they say, is history.’
Virgin Atlantic’s ‘secret sauce’
“We partnered very well,” Weiss said.
I posed a tough question about how Virgin Atlantic can maintain a differentiated advantage in an increasingly data-driven airline world, and both Weiss and Branson remained unmoved.
Sir Richard was in very good spirits during the first flight.
Sir Richard poses on top of his first plane. This 747 flew for Virgin until 2001, when it was delivered to Nigerian airline Kabo Air. Sir Richard said in instagram that Virgin Atlantic ‘was created to offer a bright red, fun and friendly option that made flying better for everyone’
Weiss pointed to the success of the airline’s partnership with US-based Delta Air Lines as a pivotal moment for the airline.
Business in the US is expected to reach an all-time high as Delta customers adopt the Virgin Atlantic way, resulting in more than 40 percent of traffic coming from US customers.
At a press conference in Las Vegas, Virgin announced a new route to Toronto in collaboration with partner WestJet, an example of the partner’s thinking.
“We’ve always been agile,” Sir Richard said, joking with Weiss that they just make decisions and the team makes them like that… just like that.
Weiss, very amused, revealed that whether it’s changing an iconic red uniform or adding a service to the service, the answer is often just “sure, Richard.”
“It’s that easy,” he added.
Both agree that the airline’s ability to simply try things and innovate is a big differentiator.
On this topic, Sir Richard couldn’t resist a subtle dig at British Airways.
“They have no hotels, no cruise ships, no spaceships,” he said happily.
Loyalty is the bright red future for Virgin
Princess Diana carries out one of her last official engagements: naming a Virgin Airbus A340-300 ‘Lady in Red’ with Richard Branson at Heathrow in 1993.
Princess Diana made a short flight with about 200 guests on the new A340-300
The Lady in Red went on to fly for Virgin Nigeria and Air Comet
In 2003, Virgin Atlantic delivered 60 tonnes of aid to Iraq using a Boeing 747. Sir Richard is pictured above with the plane at Basra Airport.
Both Weiss and Branson watch with attention and concentration as we dive into the future.
Nobody thought the airline would last 40 years, so what’s next?
Virgin Red, the loyalty program that connects the ability to earn and redeem points across all Virgin brands and experiences, is a core focus for both.
Sir Richard said that if you stay in hotels long enough, fly long enough, sail long enough and live long enough, you might get enough points to fly into space on a Virgin Galactic spaceship.
This is a man who has turned sky-high thinking into orbiting business.
And you would be a fool to bet against another 40 years of success for Virgin Atlantic.
Gilbert Ott is founder of the travel site www.godsavethepoints.com. He can be found tweeting at @godsavethepoint.
