Evening Standard
Billionaire Sir Richard Branson today warned Virgin Atlantic will need financial aid from the Government in order to survive the coronavirus crisis as he defended himself amid backlash over a bailout request.
As the Virgin Group boss works “day and night” to save jobs, he says the airline needs taxpayers’ support in the form of a commercial loan.
Sir Richard has also said he will put his private Caribbean island up as a collateral in his attempt to persuade the Government to save the airline from going bust.
In an open letter to staff, published on Monday, Sir Richard said this period was “the most challenging time” he has ever faced during his five decades in business.
It comes after he faced intense criticism for trying to convince ministers to give Virgin Atlantic a £500m bailout to help it survive the economic fallout from the pandemic.
He wrote: “It is hard to find the words to convey what a devastating impact this pandemic continues to have on so many communities, businesses and people around the world.
“From a business perspective, the damage to many is unprecedented and the length of the disruption remains worryingly unknown.”
Calling for financial support from the Government, he said: “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.”
With more than 70,000 people working in Virgin companies across 35 countries, Sir Richard said he is doing all he can to protect jobs and keep businesses afloat.
Last month, he announced he would be investing £215 million into his Virgin empire to protect jobs amid the crisis.
“Together with our Virgin company teams, I am working day and night to look after our people and protect as many jobs as possible,” he said.
“We’re doing all we can to keep those businesses afloat and I am so thankful to all of you who have continued to work so hard in these difficult times.”
But the 69-year-old said the challenge right now is that there is “no money coming in and lots going out”.
Virgin Unite has also donated millions to support community health workers on the ground in Africa, he said.