In Zero G Conversation

RICHARD BRANSON IS WAITING for a hurricane. Sitting on a park bench at the tip of Manhattan on a cloudless August morning, Branson describes his plan to be the fastest man to sail across the Atlantic. First he has to catch a perfectly aimed storm, navigate icebergs, brave currents and fog and dodge pods of whales. The journey is scheduled for when conditions are right, and the boat he hopes will bust the record floats in front of us, a 30m sloop Branson has painted his signature red and christened Virgin Money, after his new financial company. On the dock, morning show television crews are setting up to get a live shot of the British billionaire. Branson certainly knows how to ride a media storm. "These record-breaking attempts help keep Virgin in the news," he tells POWER. "And they're fun things to do."

That combination of daring and fun has propelled Branson's business ventures for decades, and his personal stunts have brought Virgin hundreds of millions of dollars in free publicity. He holds five world records, including the fastest crossing of the Atlantic in a powerboat and a balloon. His outlandish public persona helped build Virgin Records into the largest independent record label in the world, until he sold it to EMI in 1992 for $1 billion. He readily admits that routinely making a fool of himself for the tabloids was the only way he could compete with British Airway's marketing budget in the 1980s when he first launched Virgin Atlantic.

Now 58, Branson hasn't attempted to break a world record in 10 years. Last year, he cut his hand while being dropped off the top of the Palms Casino Resort tower in Las Vegas to promote his airline Virgin America. That said, Branson's most recent business ventures speak of the daredevil within him. He promises to bring his son Sam, 23, and daughter Holly, 26, with him on his first commercial flight into space with Virgin Galactic. Virgin America is expanding while other airlines are downsizing because of high fuel costs. He's launched a mortgage and financial management company, Virgin Money, in the jaws of an impending global recession and the worst lending crisis the US has seen in decades.

Branson says he feels most comfortable as the underdog - as much of an underdog as a man worth US$2.8 billion can be. This goes a long way to explaining why he's willing to risk failure and compete head-to-head with British Airways or Coca Cola, or launch a train business in Britain, or develop alternative fuels for airliners. And his outsized ambition hasn't been limited to business and adventures. In the past two years, Branson has pledged an estimated $3 billion in future profits to fight global warming, and launched HIV/AIDS initiatives in Africa. He helped found The Elders, a group of influential leaders including Kofi Annan and Jimmy Carter, to try and solve the world's most enduring conflicts.

As we're talking on the bench along the Hudson River, Branson's physical appearance is as familiar as the lipstick scrawl of the Virgin logo. His signature goatee and blonde mane, now the color of lemon yogurt, haven't changed in decades. Passersby recognize him and some shout greetings - "We love you Richard!" - and point their thumbs in the air. "Keep it up!" He flashes his klieg-light smile. It isn't hard to see that Branson knows he needs the public more than they need him.

I look across at the security detail hired to keep admirers off the docks. His protection consists of three cute girls in short-shorts, fitted striped shirts and sailor hats. They are armed with clipboards.

"He doesn't like the big burly guys with earpieces," one of his handlers tells me later.

Long ago, Richard Branson figured out that airline customers, cola drinkers, music listeners, train riders and millions of potential investors don't like them much either.

A lot of people are attracted to your life story: left school at age 16, never graduated from high school, you now have started over 200 companies. Do you think if you were growing up in today's world, you'd be diagnosed with ADHD and be on high doses of Ritalin?
Branson laughs.

 A man walks by: "Richard, love your book."

 [Laughing.] Thank you!
I think leaving school early, if you really know what you want to do, can work. The problem is most parents will say to their children that if it doesn't work out you might need the insurance policy of an education to fall back on. But I suspect that if you know what you want to do, just getting out there and doing it in the real world is time better spent than going to college. But most people fall flat on their face. I've come close to falling flat on my face, and if I had fallen flat on my face, hopefully I would have picked myself up and carried on. But a university education would have been a good insurance policy, you know, a job. There are a lot of universities that are designed just to occupy someone's time. There are some very good universities that you can genuinely learn something from. But the best university is the University of Life, generally. Where you just throw yourself in the deep end and you get out there and learn by getting on and doing it. And there is no question that by leaving school at 15, and by the time I would have left university, I'd already learned an awful lot and got ahead in life.

At 15 you started a business growing Christmas trees and raising budgerigars. What were you thinking?
Well, I was about 14 then. I wanted to have some money for after I left school. At that stage, I was thinking I might stay on [in school] until 18, 19.  I was thinking: Christmas trees, they grow a foot a year, if I plant 10,000 trees by the time I'm 18 and I leave school I'll have enough money (you make £1 a foot) to get me going in life. But as it turned out, rabbits ate them all. And it was the same with budgerigars. I had heard they bred profusely. But I forgot that rats like to eat budgerigars. So, those two things didn't work out. But [my] student magazine, which was a voice for young people, did work out. It was my education. And a very exciting time to be an editor of a student magazine ...

1966, in London ...
Yeah, with the Vietnam War going on and students marching on the street. And I was one of those marchers. So, it was an exciting time. During that time there was much greater understanding of minorities, and the gay community became accepted and it was a time of free love. It was an exciting time to be alive.

You said you very nearly fell on your face a couple times as a businessman. Could you describe your biggest crisis as a businessman?
I suspect my biggest crisis and the lesson I learned from it, was ... there are two people in your life that you get far too close to, and they never change. That is your bank and your doctor. And you've got to be ready to change them. Our bank was Coutts and Company, the Queen's bank. We'd become its biggest corporate account and it wasn't used to dealing with corporates.

What year was this?
1984. We had a very successful record as a company. We chose to launch an airline and the bank went into complete panic mode. I arrived back from launching the airline to find the bank manager sitting on my doorstep. We were a tiny bit over our facility of £3 million. And he told us he was going to foreclose on the whole Virgin group on the Monday unless we got that facility down. So I sort of pushed him out of the house, told him he wasn't welcome, and we managed to scramble some money together by the Monday, and by Friday we had changed banks. Lloyds Bank lent us £30 million instead of the £3 million Coutts were lending us on exactly the same collateral. We should have obviously shopped around earlier and gotten better financing. So that was close.

That weekend you were making phone calls, digging up money?
Yeah, we had Virgin Records. It was a very successful company, that's why it was so bizarre. We had people like Phil Collins and the Rolling Stones and Genesis and Culture Club and Janet Jackson - tremendous bands on the label. It was the most successful independent record label in the world. We'd made $20 million profit that year. So we rang our distributors around the world and managed to get the money, and we'd had an unfortunate incident where the very first flight of Virgin Atlantic, the engine exploded - without insurance. We had to scramble to get $1 million.

Was there a dark moment when you thought you might not be able to recover?
Yeah, it was tough. It was worrying. I was always somebody who will fight tooth and nail to survive any situation. On my last boat crossing the Atlantic we were trying to beat the record for the fastest crossing and we had a refueling ship that pumped 50 percent water into our tank and 50 percent fuel. Tons of vapors came out the back and most people on the boat sat down and cried. And I'm just not the sort of person who gives up. I talked to the engineers. Is there any chance of resolving this? They said that if we had more filters we'd have a chance. We'd have to stay in the engine room the whole trip and we'd have to filter every single bit of fuel that went through. I said, how many filters have you got? They said, well, we've got 10. That'll last us about five hours. So I rang up [then British prime minister] Margaret Thatcher and asked if she could get a Nimrod [a maritime patrol aircraft] out to us. So, we're bouncing along and a Nimrod arrives and parachutes more filters to us, and we broke the record. It's just an attitude I've been brought up with - never ever give up. Obviously there are occasions I've used that attitude and I've failed at something. But as long as I've triedeverything I can to succeed at something, I can move on to the next thing.

Speaking of Virgin Records, POWER's editor went to college in the 1970s and he says he can barely forgive you for Tubular Bells, but was okay with Culture Club.
[Laughs.] He said he couldn't forgive me for Tubular Bells?  Um, yeah, well, he obviously didn't get stoned in those days. [Laughs.]

[Branson looks up as two men approach the bench.]

First man: Mr. Branson, sorry to interrupt.

Branson: Nice to see you.

First man: I just wanted to shake your hand and welcome you to New York. [Branson shakes his outstretched hand.]

Branson: Thank you very much

Second man: You're setting a fine example.

Branson: Thank you, nice to see you.

First man: With the upmost respect.

[The men start to walk away, Branson turns to me] I've got all these actors coming along to impress you. [Laughs.]

I hope it didn't set you back much.
OK. Where were we? Next question.

Well, we're a magazine based in Hong Kong, one of the freest economies in the world and we think the FAA's attempt to keep you out of the US airline business and separate you from Virgin America simply because you're British was the lowest form of protectionism, and we're surprised it didn't provoke more outrage than it did.
Sadly, I think there are some sectors in America that are still very, very protective. And the airline industry is one. The end result has been that the American airline industry is by far the worst in the world for quality. To fly on almost any American airline - American, Delta, United, what's left of TWA - is an abysmal experience, and they need really good competition. Wouldn't it be wonderful if quality airlines like Singapore or Emirates were allowed into America to shake up the industry? It is an old law I believe set up in 1939 to stop Hitler setting up an airline in America, which the American carriers have zealously used as an act of protectionism. We ended up setting up an airline in the States with me having to put all my shares in trust, with no voting, with a minority interest. And it's frustrating. We've managed to create a great airline, but, ultimately, we don't have the final say to make sure every little detail is exactly as we want. Fortunately we have a chief executive who is imbued with what Virgin has done around the world. And the very fact that Virgin is here, it made a big difference with BA and other airlines when we competed over the Atlantic, and I'm sure if it doesn't make a difference with American carriers they'll go to the wolves. I think the quality of Virgin in America will put the cat among the pigeons.

You're expanding your presence in Asia, increasing the number of flights to Hong Kong and China. Why have you decided to expand your Asian portfolio?
It's the fastest-growing market in the world. In India, we just launched a mobile phone company - there are still millions of people who don't have mobile phones. If you're a global business, not to be in Asia would be a big mistake. The only way the West is going to survive the might of Asia is to go and trade with it and go and be part of it. The new young dynamic entrepreneurs in Asia are a breath of fresh air. A new one seems to crop up every day. I've met a lot of them, and they are bright and interesting; they're as capitalistic as the most capitalistic American or Brit. And they've got this gigantic market, so that when they hit it right they can achieve a lot.

Are there structural problems with the Chinese economy that concern you? Are we heading for a bust?
It is as difficult to break into, even more difficult, or as difficult, as America. For us to set up a domestic airline in China would be tough. We spent a lot of money trying to set up a mobile phone company [about one year ago] and at the last minute they changed the deal on us, and we never managed to get it set up, which we were very disappointed about. So it is protectionist as well. But it's up to us to find ways around that. There is this global recession going on at the moment. It will affect Asia. But, you're talking about maybe growth at seven percent not 10 percent, but they're still growing very well.

[Branson's press handler waves to him.]
You want me?

Branson heads off to the dock to get wired for the morning television shows. Afterward. I join him as he is whisked onboard Virgin Money to meet the crew and try his hand at the helm. Then, while sailing down the Hudson, he's handed a cell phone. From the wheel, he has to convince the head of Airbus not to scrap a deal to deliver planes to Virgin America. Then he's winched up the mast for a photo op with his daughter Holly in front of the Statue of Liberty. Then he's on a speedboat headed for a helipad. That's when I lose him. I manage to catch up later that day in a cargo hanger at John F Kennedy Airport. He's there to send off the first Virgin America flight from New York to Las Vegas with the heartthrob cast of HBO's series Entourage.Fortunately, there's a free seat on his chopper back to Manhattan. I climb in and notice he's reading email on a Blackberry. Branson for years has famously eschewed communication technology more advanced than a pen and black exam book.

I saw you on a Blackberry.
Yeah, finally I've got there. I've just found that I'm on the move and to keep in touch with 50 different countries and everything that is going on. It avoids me having to carry a big bag of paperwork, which I normally have.

When did you make the conversion?
About 18 months ago.

What happened to your black notebooks?
I still like to keep notes because otherwise I feel like they get lost. So, I still have a notebook to scribble diary pieces or conversations. But just communicating, I'll receive on the Blackberry. I'll normally make a quick call rather than respond on a Blackberry because I think it is more personal. Occasionally, I'll respond as well. There must have been a reason why everyone used a Blackberry in the past. Maybe I've just realized why.

What is that reason?
It's just speed really. I can be spending the day doing a lot of different things, 10 minutes here and 10 minutes there. We had a situation where we were losing some planes that Virgin America needed, and they needed a decision today. If I hadn't gone to the Blackberry and made a quick call we would have lost those planes.

Tell me about that.
Today, on the boat, I talked to John Leahy, who heads up Airbus, and sorted out the issue. So, between all the hustle and bustle of fun PR, I've still got an empire to run.

How many planes are we taking about?
Um, another 15 or so planes.

You had a mini-crisis while we were out on the boat today?
Yeah. [Laughs.]

Have you resolved it?
Yeah, we got it resolved. That's obviously the advantage of, I suppose, being such a high-profile figure, quite a successful figure, it means I can pick up the phone to almost anybody in the world and get straight through and get problems resolved. The people who work at Virgin will do their best, but sometimes they will ring me up and say, "We need you to intervene on something."

You take that same role in your philanthropy. You started your first charity when you were 17, the Student Advisory Council. Why was that important to you at the time?
Well, I had a national magazine for young people. We got lots of letters from those people needing help. All sorts of things, from people with venereal disease to people needing an abortion when they couldn't afford it; people who wanted to commit suicide; educational problems; parental problems; psychiatric problems. We decided not to just be an Agony Aunt column, but actually set up an organization that could find the best place for people to go when they needed help. There might be someone who lived in Wales who didn't want to talk to their doctor because their parents might find out. I'm a lad of the 60s and that era was much more understanding of the gay community and minority groups, and it was also a time of free love without the worries of AIDS and HIV.

Do you miss that time?
I never believed in missing anything. I've had the most incredible life. I've just enjoyed every minute of every day of my life. Yes, obviously, being single, living in the 60s, with everything I know now. Why not? That sounds fun. [Smiles.] But as my wife would say, "Grow up."

Why philanthropy? Why not just focus on making money, creating jobs?
I've been brought up with a conscience. My parents ...

Was there an example they set?
Yeah, they were a great example. They never had the financial resources to do a lot. But they still play their part. I soon realized that if you could get into a position to make a difference, you must do so, and I'm sure, when I'm on my deathbed one day I'll be able to face death feeling that much better. If I were religious I would be able to say, well maybe I could get that eye of the needle a bit wider as a result. I've seen a lot of situations where we have managed to make a difference. It's good to be able to make a difference.

With The Elders, are you satisfied with the effectiveness of putting that together? Has it done what you were hoping it would do?
As always in life, they've had some spectacular successes, and there are other things I wish we could have done more on. But they've only been going a year. The greatest success was Kenya, where Archbishop [Desmond] Tutu, Kofi Annan and Gra?a Machel went and knocked heads together and avoided what was turning into a potential Somalia - a ghastly civil war. Now you've got Kenya back again. Prime Minister [Raila] Odinga is a really good man and working well with the president. I think if The Elders hadn't intervened when they did that could have been a disaster.

What would you like to see they doing that they're not doing?
We're trying to get them involved with Iran, and that's something we're working on. Quite likely they'll be going to Cyprus to help cement those talks. Those talks are already going well - just to give it another push. Israel and Palestine, they will be playing a role there. Carter on his own has played a role there. Kofi Annan and Archbishop Tutu and others very much want to play a role. They now have a very good secretariat in London, and we've got a lot of very good people working behind them trying to help.

Is there an inconsistency between your environmental work and launching Virgin Galactic, which sucks up massive amounts of fossil fuels to put rich people into space?
Well,ifit produced a lot of carbon it certainly would be an inconsistency. As it is, we've created a spaceship company that almost uses no carbon at all. We may be completely benign by the time we've launched it with the alternative energy sources we're using. NASA has old technology; they use up two weeks of New York's electrical supply every time they launch people into space. I think there is no question that Virgin Galactic will save dramatically on the carbon output. So, we'll be able to put satellites into space at a fraction of the carbon output that currently you use. Satellites could be very useful one day to combat global warming. It will help us with our knowledge. The Virgin Galactic flights take place where scientists desperately want to monitor what's going on up there. So, I think it will be a net positive. Not a net negative.

You're launching a new record-breaking attempt after 10 years. Why this obsession with breaking records?
Well, first of all, I still have a business to run. And that's the engine that helps us with our philanthropy, and these record-breaking attempts help keep Virgin in the news and they're fun things to do. The public enjoys them. I enjoy them. The reason I couldn't resist this one was I could bring my daughter and son. It's like going on a holiday together with the most incredible adventure.

It's a dangerous event. If Holly and Sam get hurt, how much trouble are you going to be in?
Oh, I don't think I'd ever be forgiven by my wife. But they are in their 20s. My son has been in the Arctic on his own. He's been on three Arctic expeditions, had to deal with polar bears coming into his camp at night on five different occasions. So they're adults and in the same way my parents didn't keep me cocooned watching television, I won't do the same with my kids.