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Richard Branson offers Caribbean Island to secure Virgin Atlantic Bailout

Monday, 20 April 2020
Richard Branson offers Caribbean Island to secure Virgin Atlantic Bailout

Sir Richard Branson has offered Necker Island as collateral in a bid to gain a bailout from the UK government to save the struggling Virgin Atlantic.

 

The bailout, which would be funded by British taxpayers, is estimated to be in the region of £500m and would come in the form of a commercial loan which would be paid back.

 

The UK government recently rejected the airline’s bid for financial assistance as Virgin Atlantic had not done enough to show they had tried to secure cash by other meaning before asking for state aid.

 

UK budget, airline EasyJet recently received government aid in the form of a £600m loan.

 

In a letter to Virgin Atlantic staff, Sir Richard Branson said “We will do everything we can to keep the airline going - but we will need government support to achieve that in the face of the severe uncertainty surrounding travel today and not knowing how long the planes will be grounded for”

 

Airbus, Rolls Royce and Heathrow airport previously urged ministers to offer support to the airline due to its vital role in the UK’s manufacturing supply chain.

 

It has also been reported that Virgin Australia, of which Branson owns a 10% stake, is to enter voluntary administration after being refused financial assistance by the Australian government.

 

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Other relevant blogs:

 

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