Virgin Atlantic was the primary British airline to hunt authorities support following the COVID-19 pandemic, although the UK authorities rejected the airline’s request.
- Reuters London
- Last Updated: April 21, 2020, 5:11 PM IST
Virgin Atlantic will solely survive the coronavirus outbreak if it will get monetary assist from the British authorities, the airline’s founder Richard Branson mentioned on Monday.
Virgin Atlantic final month requested the federal government for emergency monetary assist along with the coronavirus package deal made accessible to all British firms, however a deal has not but been reached.
“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,” Branson mentioned in a weblog publish to workers.
“This would be in the form of a commercial loan – it wouldn’t be free money and the airline would pay it back.”
Virgin Atlantic is predicated within the UK and is 51% owned by Branson’s Virgin group and 49% owned by U.S. airline Delta.
Branson, a billionaire, has come below hearth from opposition Labour occasion politicians for asking for assist at a time when Virgin Atlantic workers have taken a short lived wage discount and far of the economic system has floor to a halt.
Virgin Atlantic workers have taken a wage lower for eight weeks, which Branson mentioned was a “virtually unanimous” determination by workers and never compelled upon them by administration.
“I’ve seen lots of comments about my net worth – but that is calculated on the value of Virgin businesses around the world before this crisis, not sitting as cash in a bank account ready to withdraw,” he mentioned.
“Over the years significant profits have never been taken out of the Virgin Group, instead they have been reinvested in building businesses that create value and opportunities. The challenge right now is that there is no money coming in and lots going out.”