Richard Branson offers Caribbean Island to secure Virgin Atlantic Bailout
Monday, 20 Apr 2020
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.
Is the coronavirus affecting the Send My Bag service? Can I still ship?
Our Most Popular Articles
EasyJet to keep middle seats empty after lockdown
The budget airline has announced that it plans to keep middle seats empty to allow for social distancing once lockdown rules are lifted.
One Fifth of Wizz Air Staff Will Lose Their Jobs
Low-cost European airline Wizz Air has announced that approximately 1,000 people, nearly one-fifth of its workforce, will lose their jobs as a result of the coronavirus pandemic.
US Government Agree on $25bn Bailout Package for Airlines
The US government agree on a $25bn bailout package for the struggling airline industry in the wake of COVID-19. Airlines are expected to lose $314bn in revenue this year according to The International Air Transport Association as a result of the global pandemic bringing the majority of air travel to a standstill.