Richard Branson's Virgin Trains USA deal dies; Brightline name sticks for California and Florida lines
Richard Branson's splash and bravado is no match for the economic realities of the coronavirus pandemic. Adding to the list of woes facing airlines Virgin Atlantic and Virgin Australia, his U.S. rail pact appears dead before it even left the station.
On Aug. 7, Brightline Trains notified investors that its rail lines in California and Florida would not be rebranded Virgin Trains USA, after all. The move, announced by the train company in a monthly revenue and ridership report, comes more than two-years after Branson and Brightline officials announced the new pact that would see the Virgin name return to the U.S. domestic market — albeit on rails rather than in the skies.
While Brightline does not say why it is ending the agreement, the Virgin name comes with a hefty price tag. Prior to Alaska Airlines take over of Virgin America in 2016, the Virgin-branded airline paid as much as $7.7 million in licensing fees to Branson's Virgin Group annually.
Sign up for the free daily TPG newsletter for more airline news!
Brightline operates a 70-mile intercity rail line between Miami and West Palm Beach in South Florida. A 140-mile extension to Orlando International Airport (MCO) is under construction while design and engineering work is underway for new stations in Aventura and Boca Raton.
Planning work on a proposed station on Disney property west of the Orlando airport is underway. If that is built, Brightline would provide visitors to Disney with a one-seat train ride between the theme parks and both the Orlando airport and destinations in South Florida — including a planned station at the PortMiami cruise ship terminal.
Brightline is also discussing a possible extension to Tampa from the proposed Disney station. It is also considering a station at the Fort Lauderdale (FLL) airport, which is adjacent to the route of its trains.
Related: Brightline breaks ground on new line in Florida
Beyond its Florida line, Brightline hopes to break ground on a new 170-mile high-speed rail line between Las Vegas and Victorville in Southern California this fall.
The decision to end ties with Branson's Virgin Group does not affect Brightline's rail expansion projects. Virgin will have no affiliation or equity investment in the train company following their separation.
Brightline passenger service has been suspended since March due to COVID-19. The firm continues to "monitor the situation and evaluate an appropriate time" to resume regular service.
Related: Virgin Trains USA Plans to Connect Miami and Orlando, and Extend to Disney World
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.