Virgin Atlantic in danger of collapse without government support

Monday, April 20, 2020

Founder Richard Branson of Virgin Atlantic has warned that the airlines could be in imminent danger of collapse without government support.

The entrepreneur said in an open letter to the staff that the coronavirus pandemic had created the most challenging trading environment the carrier had ever faced.

Branson urged officials to provide the struggling carrier with capital on commercial terms and rebutted claims that he was seeking free money.

Together with the team at Virgin Atlantic he wishes ti do everything  to keep the airline going – but they  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.

This would be in the form of a commercial loan  and will not be free money and the airline would pay it back.

Many airlines around the world need government support and many have already received it and without it there won’t be any competition left and hundreds of thousands more jobs will be lost, along with critical connectivity and huge economic value.

Virgin Atlantic which is owned by the Virgin Group and holds a 20 per cent stake, Air France-KLM (31 per cent) and Delta Air Lines (49 per cent) is believed to be seeking £500 million from the UK government.

The applications has been rejected after failing to explore alternative sources of finance.

Virgin Australia is also seeking government support.

« Back to Page

• Plane Collide at Heathrow, British Airways and Virgin Atlantic Escape Major Disruption

• Second daily direct flight from London to Mumbai announced by Virgin Atlantic for October 2024

• A new era of travel: Virgin Atlantic’s expanded india services promise enhanced customer and cargo options

• Virgin Atlantic’s Premier Cabin Crew Elevates Rylan’s Training Experience to New Heights at 38,000 Feet

• Virgin Atlantic joins forces with Kenya Airways to enhance connectivity