Virgin boss Sir Richard Branson is to expand his aviation empire to the United States.
The business tycoon is restricted by American law but hopes to take a 49 per cent financial share in a low-cost quality airline.
His State-side fleet - expected to be 15 to 20 planes - will not go under the Virgin brand but Sir Richard hopes to have it launched in the first half of next year.
He said: "We have been waiting for 20 years for the law to change.
"We want a 49 per cent economic share and will bring in another partner to get things going."
Sir Richard said discussions were in the early stages but the new airline would start from scratch rather than taking over an existing one.
It would be a quality low-cost service along the lines of the American airline Jet Blue.
Sir Richard's announcement came as Virgin unveiled its new upper class suite at a launch near Gatwick.
The glitzy affair opened with the Virgin boss - dressed as rapper Eminem - taking a chainsaw to the traditional British Airways first-class seat.
His new Virgin upper class suite boasts a new concept - a separate seat and separate bed.
The leather seat, which can stay in the reclining position during take-off and landing, flips into a completely flat bed which stretches to 6ft 7in.
Passengers also get an adjustable foot stool, which doubles up as a chair for another person to dine opposite or carry out an informal meeting.
Virgin has also expanded its luxury drinks bar and will offer passengers the option to eat when they want.
Other perks of the service include complimentary limousines and on-board massage.
Sir Richard stressed the cost of this new first class would stay at the same price as Virgin's original business fare.
The aim of the upper class suite was to provide alternative luxury travel for people if Concorde was forced into retirement.
He said: "We will keep battling to keep Concorde flying right to the bitter end. However, should we fail to do so, Concorde and other first-class passengers will need a new super-luxury way of travelling.
"Virgin Atlantic's upper class suite will give them all they need and costs thousands of pounds less."
Virgin hoped to siphon off four to five per cent of BA's business travel and ten per cent of its first class travel in its first 12 months.
Sir Richard expected the new first class, which has cost £50 million to develop, to make £100 million in its first year.
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