Fed: Virgin credit card launch delayed, Branson

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Fed: Virgin credit card launch delayed, Branson

By Darrin Barnett

MELBOURNE, Aug 29 AAP - The launch of Virgin's credit card operations in Australiawill be delayed by up to six months, group chairman Sir Richard Branson said today.

Despite suggesting a fortnight ago the card would be ready by March next year, SirRichard said unforeseen complications such as the current legal action over use of theSydney Airport Terminal had forced the delay.

"We've launched in the UK, we're just launching in America, we will be launching soonin Australia," Sir Richard said.

"But right now we're just concentrating on building the Virgin mobile phone companyand building Virgin Blue.

"I hope that we would have launched Virgin credit cards within 12 months."

Sir Richard said it made sense to use the credit card service to tie together the company'sretail, mobile phone and airline arms.

"Now that we've got Virgin retail shops, we've got the mobile phone business doingvery well and we've got Virgin Blue well established, it makes sense to have a creditcard to try to pull the various companies together and offer the consumers good value,"

he said.

"It will offer much better interest rates than currently on offer, and discounts onyour DVDs, your CDs, your air travel, your mobile phones."

Sir Richard said he had not yet looked closely at proposed changes to Australia's creditcard system released by the Reserve Bank on Tuesday.

It has been reported the basic interest rate on the Virgin credit card could be one-thirdless than that of existing cards.

Sir Richard was in Melbourne to promote Virgin Blue's new service from Melbourne toHobart, which costs from $99 one-way for internet bookings, with a fully flexible one-wayfare of $209.

AAP db/clr/mg

KEYWORD: VIRGIN CREDIT