The coronavirus crisis hits Virgin Atlantic
Tuesday, April 28, 2020
The coronavirus crisis hits Virgin Atlantic
On Sunday, the airline announced that it was to be put up for sale. This came after it had already requested a £500m state support which however was rejected by the UK government. However, due to Branson’s well known fortune the CEO has been given some heavy criticism for requesting such a fund despite his own liquidity. The airline is now seeking out various options in order to avoid administration.
Virgin Atlantic is seeking investors
The airline group is now looking for up to 100 investors in order to survive amidst travel bans, reduced demand and ongoing costs. This number of investors would be needed so that the air carrier could form a consortium where all funds together would help provide financial means during the time of the pandemic. This would mean Branson himself would lose his stake in the airline.
Reports are that up to 50 different investors have voiced interest in purchasing Virgin Atlantic.
Virgin Australia files for administration
Last week, another airline called for administration as a result of the coronavirus crisis. Virgin Australia who is the largest air carrier in Australia and part of the Virgin Group owned by Richard Branson. The airline employed about 16,000 employees and was partly owned by Asian parties such as the UAE government and Singapore Airlines.
Virgin Atlantic may still be granted government aid
However, reports suggest that just because the airline has not been granted financial aid yet that they never will. According to an airline spokesperson, talks about government aid are still on-going so all is not lost as of yet! It’s clear that Branson will want to avoid administration at all costs and would be truly sad to see another UK airline to suffer the consequences of travel bans.
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