Virgin Atlantic Seeks a £1billion Rescue Deal

Branson to invest £200m in Virgin Atlantic to secure £1bn rescue deal

Web Editor | ConsumerConnect

As the devastating effects of the novel Coronavirus (COVID-19) continue to upset individuals, business and economies around the world, Sir Richard Branson, aviation business foremost investor, is set to pump £200million emergency cash immediately into Virgin Atlantic in order to secure a £1billion rescue deal.

His Virgin Group will back the airline as it battles to stay afloat, according to MailOnline report.

It was learnt that some 3,150 out of 10,000 staff strength face the chop as the airline industry struggles amid widespread flight cancellations and question marks about how long it will take travel to return to pre-COVID levels.

Virgin Atlantic’s other major shareholder, American airline Delta, is thought to have lined up £400million of support.

This is unlikely to be paid in a lump sum and would instead be handed over via deferred payments for various brand fees and services, the Financial Times reported.

Keeping afloat when flights are only just restarting and long-haul travel is minimal is crucial as the airline tries to hammer out a rescue package that is expected to total around £1billion, report stated.

It is thought private investors will provide another £250million in the attempt to rescue the fortune of the aviation giant.

Hitherto, billionaire Branson was reported to have asked the British Government for a bailout loan, but this was rejected and he was slammed by critics, who argued the 69-year-old should stump up the cash himself.

He later offered up his Caribbean island, Necker, as collateral for a private loan.

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