I am not sure if you have heard about This Story or if similar adds have appeared in the US. it is an interesting grey area especially in the age of photo sharing and file sharing. In theory Virgin have done nothing illegal as the image appears under a creative commonse licence. In Australia however, the a model release and consent would be required if an image was used to "endorse a product" which this image does. but then we are dealing with multiple stakeholders in this lawsuit and multiple jurisdictions so it is likely to spend a long time bogged down in legal procedings.