Virgin on the ridiculous

3 April 2020 By Ed Cropley Follow @edwardcropley

The bearded businessman’s airline wants 500 mln pounds in UK state aid. Supplier Rolls-Royce wants it to stay aloft; arch-rival British Airways does not. Branson’s non-resident status, a big U.S. co-owner and Virgin’s shaky financial record mean the government may agree.

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Virgin Atlantic has applied for 500 million pounds in assistance from the British government to help it through the coronavirus crisis, the Financial Times reported on April 2.

The plea by the airline, which is 51% owned by Richard Branson’s Virgin Group and 49% by U.S. carrier Delta, is being backed by London’s Heathrow airport and aerospace firms such as Rolls-Royce and Airbus.

Virgin Australia, in which Branson’s Virgin Group has a 10% stake, said on March 31 it was asking the Australian government for A$1.4 billion ($863 million) in assistance.

The Australian Financial Review said on April 2 that Canberra was likely to let the nation’s second-biggest carrier collapse, rather than bail it out, in expectation of a new rival to domestic flag carrier Qantas taking its place.

Context News

Virgin Atlantic has applied for 500 million pounds in assistance from the British government to help it through the coronavirus crisis, the Financial Times reported on April 2.

Virgin Australia, in which Branson’s Virgin Group has a 10% stake, said on March 31 it was asking the Australian government for A$1.4 billion ($863 million) in assistance.

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