• Branson insured for $85 million
• Balloon threads 'eye of needle'
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December 21, 1998
Web posted at: 7:20 p.m. EST (0020 GMT)

(CNN) -- An international team of balloonists sailed into Chinese airspace early Tuesday, despite China's refusal to give them clearance.

British tycoon Richard Branson, American millionaire Steve Fossett and Swedish co-pilot Per Lindstrand crossed over the Himalayas into southwestern China on their quest to become the first to fly nonstop around the world in a balloon.

China had agreed to allow the team to fly through one of two specific regions in the country.

But due to recent political and meteorological storms, the crew changed course to a direction that placed them between the approved windows into China, according to a spokesman for the balloon team.

The balloon's course to date

"We are effectively in an emergency situation," said team leader Branson, in a statement relayed to his team associates in London. "But we are friends with the Chinese people, and this is a sporting event. We have no choice but to go over China, and we would be enormously grateful if they let us in."

Because of the rugged terrain of the Himalayas, there was no place to land safely before reaching China, project leader Mike Kendrick said.

ICO Global, a mobile telephone company sponsoring the trip, said preparations are under way for a search and rescue operation should one become necessary. If forced to make an emergency stop, rescuers might need seven days to reach the crew, a statement said.

Hours before the border crossing, an intense diplomatic crusade that included the personal appeal of British Prime Minister Tony Blair failed to convince the Chinese government to permit the balloon to continue its course into China.

Chinese officials had indicated that should the balloon cross the border, the pilots must obey all instructions.

If China orders the balloon to land, it will do so, ICO Global said.

Branson insured for $85 million

Branson's Virgin Group could receive an insurance payout of $85 million should the trip end in disaster, according to the Guardian Newspaper in London. It would probably represent the largest sum in corporate history in Britain, a Lloyd's of London insurance underwriter told the publication.

The Chinese factor is only one of many obstacles the team has faced since their journey began from an airfield in Morocco on Friday.

Weathering a night of fierce thunderstorms, they navigated a narrow corridor on Sunday that brought them close to three countries that had denied permission to fly over their territories: Iraq, Iran and Russia.

Fossett, who lost a balloon in the Pacific Ocean two months ago as a result of a thunderstorm, shouted to his teammates to put on their parachutes Saturday as they headed north over Turkey to avoid Iraq.

Balloon threads 'eye of needle'

The balloon missed Iraq by 60 miles (100 km), Iran by 7 miles (11 km), and Russia by just 10 miles (16 km). It was "like threading a needle," said Kendrick.

The crew had a quiet day for much of Monday, flying across Turkmenistan before heading into Afghanistan and then along the Himalayas.

By midafternoon Monday, the balloon had traveled 3,000 miles (4,800 km) since takeoff, floating at an altitude of 28,000 feet (8,500 km).

The first leg of the trip was also politically sensitive. Only intense diplomacy overcame a last-minute decision by Libya to rescind permission to fly over its territory.

ICO Global spokeswoman Lori Levin-Hyams said Branson had recovered from a sore throat he had early in the trip.

Branson, Fossett and Lindstrand, all wearing silver jumpsuits, estimate the trip could last from eight days to nearly three weeks. The crew hopes to touch down somewhere in western Europe at the end of a 24,000-mile (39,000-km) flight.

Former rivals, Fossett and Branson have each made at least four attempts to go once around the Earth nonstop in an air balloon. Already on this trip the two have beaten their personal best of 48 hours aloft.

Improved technology has been used to make their latest balloon, including a canopy over the crew's pressurized capsule made of Kevlar -- the material used for bulletproof vests.

Another seven crews across the globe are preparing to challenge the team for the record. Four are ready for an attempt this winter.

The Associated Press and Reuters contributed to this report.