A Successor to Laker Takes Off

Can British Rock Music Entrepreneur Richard Branson, 33, succeed where Freddie Laker failed? The answer began unfolding last week as Branson's new airline, Virgin Atlantic, made its maiden flight from Gatwick Airport near London to Newark Airport near New York City. It carried 465 passengers, most paying a cut-rate $138, about $230 less than current standard transatlantic fares. The price will rise to $167 on July 1. An ultra-plush first-class service is also available at $1,400, about the same that other carriers charge for first class.

Branson is new to the airline business. A school dropout at 15, he started by selling advertising from a phone booth for his own youth-market magazine, Student. Today his bustling $200 million empire includes pop and rock records, videos, discos, film production and retail music outlets.

Branson maintains that Laker failed because he bought too many planes too soon and then was battered by the sinking value of the pound against the dollar. A big fleet is not Branson's problem. As of last week Virgin Atlantic consisted of one airplane, a Boeing Branson with a model of his Virgin aircraft 747-200.