But Branson, the billionaire behind Virgin Group, tweeted images on Tuesday from a train security camera of Corbyn walking past available seats.
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The MP was travelling on the three-hour 11am Virgin Trains service from London King’s Cross to Newcastle on August 11.
Corbyn’s video shows him sitting on the floor of a train because he allegedly couldn’t find a seat.
Mr Corbyn was shown on film criticising the state of Britain’s railways while sitting on the floor, describing a lack of seats as “a problem that many passengers face every day”.
The footage also showed Mr Corbyn later in the journey, at which point he was seated on the train.
He then called for public ownership of the railways.
But Virgin Trains has released CCTV images which appear to show him and his team walking past several empty unreserved seats in coach H at 11.07am and empty reserved seats in coach F at 11.08am.
Writing in the Daily Record, Kezia Dugdale said she does not believe Mr Corbyn “can unite our party and lead us into government” or “appeal to a broad enough section of voters to win an election”.
A spokesperson for Mr Corbyn told BBC that “a majority of Scottish Labour members would be backing him in the ballot”.
“I’d just say that’s very, very indicative – the establishment is absolutely petrified about what this campaign is about, what this movement is about”.
“Owen understands that to have a chance of implementing Labour values, we need to win over some of those who didn’t vote for us at the last election”.
The rail company took issue with Mr Corbyn after he complained in a video he had to sit on the floor because of “completely ram-packed” carriages on a service between London and Newcastle.
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The spokesman also said they were looking into whether Virgin Trains breached Information Commissioner’s Office data protection guidelines by releasing the CCTV.
