Sir Richard Branson has issued a bizarre cross-dressing challenge to fellow airline boss Tony Fernandes ahead of the new Formula One season.

Branson threw the full weight of his empire into the sport as Manor GP, one of the four new teams to compete from next season, has been rebranded as Virgin Racing.

The Virgin Airlines supremo now goes head to head with AirAsia's Fernandes, who is in charge of Lotus' return to motor sport's big time.

Fernandes, who once worked for Branson as a financial controller at Virgin Records, recently joked his only target for next season is to beat the 59-year-old otherwise he would retire and kill himself.

Branson has now suggested something less macabre for Fernandes should Virgin Racing eclipse Lotus at the end of their debut years.

"Having come from a music background I suppose we might be able to choose the music for the funeral," quipped Branson on Fernandes' potential demise.

"Anyway, I like Tony a lot and I really hope he doesn't have to kill himself, but at the same time I'd obviously like to beat him.

"So maybe we should think of another challenge.

"He has an airline, we have an airline, and if we beat him he can come and work on one of our airlines as a Virgin stewardess.

"It will save him having to kill himself, but we'll make sure the stewardess outfit is perfect.

"I suspect if he beats us he might ask me to reciprocate. Maybe I'll have to check out how fetching his stewardess outfits are.

"I'll be game to do it, so we're obviously confident of winning."

Branson and Fernandes join another airline owner in F1 as Force India boss Vijay Mallya runs Kingfisher.