U.S. Commercial Train Group Ditches Branson's Virgin As Business Partner

Richard Branson's U.S. rail venture has collapsed, adding to the coronavirus-related problems he already faces at carriers Virgin Australia and Virgin Atlantic.

The collaboration between billionaire Branson's Virgin Group and Florida's private commercial rail service Brightline is over after fewer than two years.

Brightline has cut ties with the Virgin Group and will no longer rebrand as Virgin Trains USA, it said in a monthly sales disclosure. Virgin and Brightline signed a partnership in 2018. Part of the deal was to rename Brightline as Virgin Trains USA the following year - but that has been shelved.

Brightline's decision to end the deal with Virgin could result in a commercial dispute, however. Neither Virgin nor Brightline agreed to comment.

Brightline operates a 70-mile stretch of intercity railroad linking South Florida's West Palm Beach and Miami. The company is building a 140-mile line connecting with Orlando International Airport. Construction continues on stations in Boca Raton and Aventura.

Brightline said in its financial report it could deal with an extended lockdown despite being hit with $66 million in operating losses last year when the company carried 1 million passengers only.

Meanwhile, Brightline is working on an extension project linking Tampa with the planned Walt Disney World station. Brightline has proposed building another station at Fort Lauderdale airport, too.