Return to Transcripts main page

American Morning

Interview with Richard Branson

Aired July 24, 2002 - 07:38   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: He is a trail blazer in the business world, not to mention his other adventurous pursuits around the world. Now, Virgin mega mogul Richard Branson flying in the face of a bruised and battered Wall Street, launching his own wireless phone network here in the U.S.

A bit earlier today I sat down and talked with Branson, Sir Richard, about stocks and scandals and his high tech leap of faith.

(BEGIN VIDEOTAPE)

HEMMER: Sir Richard, good morning.

RICHARD BRANSON, CEO, FOUNDER, VIRGIN GROUP: Good morning.

HEMMER: You are a brave man venturing into this telecom industry at a time when it's had its absolute heart ripped out. Any trepidation as you wade into this market right now? And it's been absolute headlines for the past three weeks.

BRANSON: Well, obviously there has to be some trepidation.

HEMMER: You paused.

BRANSON: But in some ways, you know, when we went into the airline business many years ago, Freddy Laker (ph) had just gone bankrupt. The airline industry was in a mess and we thought we could do a better job. The same with the mobile phone industry in America. There are expensive contracts that we feel that the mobile phone companies are having problems. And now we feel it's the time to come in and launch a brand, a new market in the States.

HEMMER: People would say you are Mr. O for opportunity, and clearly you see an opportunity in this sector.

BRANSON: Yes. I mean I think there is no brand aimed at the sort of prepaid youth market and Virgin is quite a strong brand. Today we announced some kind of tie-up with MTV which would -- and I think together we've got two of the strongest brands which can take on that youth market.

HEMMER: Give me the view from Europe right now. There have been cautions gone up weeks ago that the billions of dollars that were flooding into the U.S. markets for years now are now starting to trickle away. What is the sense that you have across the Atlantic as you look right now at the U.S. markets?

BRANSON: Well, I think that there obviously is caution and I think that the dollar going down in value, if you're a foreigner investing in America at the moment in the stock markets, you've got a double risk. You've got the fact that the stock markets are going down. You've got the fact that the dollar is going down. And so there is something to be said for people investing in Europe rather than in America at the moment.

HEMMER: Do you get the sense, though, you know, from half a world away that there is an erosion in the U.S. market, that there is a lack of confidence, that there is possibly a lack of trust given the deceptive stories that we've been reporting on for weeks?

BRANSON: Oh, yes. I mean there's no question there's a massive lack of trust at the moment. But I think, you know, if you switched the clock forward three months, once, you know, the orders is this time going to be as tough as they've ever been? And I think the American market's figures will be, that people will see will be what they will get. And I think it'll be a great time to invest.

HEMMER: Do you see a point of stabilization? Because there are a lot of people out there watching these things every day and just seeing their retirement accounts going down and down and down further.

BRANSON: I think that if you have spare cash to, you know, to put, say, 30 percent of it in the stock market on a month by month basis over the next sort of 12 to 18 months, looking forward to the next five years, it's a great opportunity now. I think in a sense, you know, you can't wait till it's hit the bottom and I think it's not a bad time to start thinking about it.

HEMMER: We hope the bottom is here today.

Let's talk about a few other topics. Let's talk about the airline industry, specifically in the U.S., and you can reflect on your own experiences in Great Britain, if you'd like, as well. There's a constant argument about airline security, are we doing the right thing, are we doing the best thing or is it all a charade? The other issue is about guns in the cockpit. Should pilots be allowed to be armed when they fly planes?

Your thoughts on both of those.

BRANSON: I think, I mean I think that obviously a lot has been done on security. I think the, you know, having bulletproof doors and having the pilots locked into the cockpits, all that is a plus. I think I wouldn't like to see guns. I think, you know, absolutely the most that should ever be allowed is something like a stun gun in the cockpit. But I think having guns on board is actually a dangerous thing because then, you know, if people hijacking a plane know there are guns in the cockpit, that could be as -- there could be as much danger as, in that as positive.

So I think that most that needs to be done has been done and I think we, you know, we have got a much safer airline than maybe we had a year ago.

HEMMER: Back in 1998, you were a partner with Steve Fossett, at the time trying to set a balloon record to circumvent the world. He did it not too long ago. I know you had some contact with him while he was traveling en route to setting the record. What do you guys talk about when he's floating at 35,000, 40,000 feet?

BRANSON: Well, I mean for me it was, you know, I wasn't living it with him in the balloon this time. I was living it with him from earth. And he's just the most remarkable individual. I talked to him just as he was crossing South America the first time. And, you know, although he was incredibly tired, I mean flying in a balloon you hardly dare go to sleep, he was very upbeat, as he always is. And...

HEMMER: Now he wants to take a glider to the atmosphere at about 50,000 feet, I believe.

BRANSON: Well, Steve just wants to test himself to the limits and I mean it, you know, there's nobody else like him now in the world. I mean he really is, you know, he is your boy's own superhero approaching 60 years old. But, and I think a lot of young people can live his experiences through with him on the Internet and, you know, through the media. And I think it's tremendous to have somebody like that.

HEMMER: And good luck to you, OK?

BRANSON: Thank you.

HEMMER: Sir Richard, Richard Branson, thank you very much.

BRANSON: Right.

(END VIDEOTAPE)

HEMMER: A man who lives life to the fullest, certainly.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com