Richard Branson’s Virgin Trains USA deal dies; Brightline name sticks for California and Florida lines
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
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
Featured image by Joe Raedle/Getty Images.
Sign-up Successful!
Welcome to The Points Guy!
WELCOME OFFER: 60,000 Points
TPG'S BONUS VALUATION*: $1,200
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases.
- 2X points on dining at restaurants including eligible delivery services, takeout and dining out and travel & 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for travel through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Earn 2x total points on up to $1,000 in grocery store purchases per month from November 1, 2020 to April 30, 2021. Includes eligible pick-up and delivery services.
Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.