Virgin Atlantic could be in imminent risk of collapse without federal government help, founder Richard Branson has warned.
In an open up letter to staff members, the entrepreneur explained the coronavirus pandemic had created the most difficult trading natural environment the provider had ever faced.
Rebutting statements he was in search of “free money”, Branson urged officials to deliver the having difficulties provider with cash on business conditions.
“Together with the group at Virgin Atlantic, we will do every little thing we can to continue to keep the airline heading – but we will will need federal government help to realize that in the face of the severe uncertainty bordering travel currently and not knowing how long the planes will be grounded for,” explained Branson.
“This would be in the type of a business loan – it wouldn’t be no cost dollars and the airline would pay it back.
“The actuality of this unprecedented crisis is that numerous airlines around the earth will need federal government help and numerous have by now acquired it.
“Without it there will not be any levels of competition still left and hundreds of countless numbers more work opportunities will be missing, along with significant connectivity and large economic benefit.”
Virgin Atlantic is owned by the Virgin Group, which holds a twenty per cent stake, Air France-KLM (31 per cent) and Delta Air Strains (forty nine per cent).
The provider is considered to be in search of £500 million from the Uk federal government, but has noticed purposes rejected following failing to discover choice resources of finance.
On the other aspect of the earth, Virgin Australia is also in search of federal government help.
Branson included: “The exact is accurate in Australia, where by the amazing Virgin Australia group is combating to endure and will need help to get by way of this catastrophic world-wide crisis.
“We are hopeful that Virgin Australia can arise much better than ever, as a more sustainable, financially feasible airline.
“If Virgin Australia disappears, Qantas would successfully have a monopoly of the Australian skies.”