https://edition.cnn.com/2020/04/20/business...nson/index.html


Richard Branson offers his island as collateral as Virgin Atlantic and Virgin Australia face collapse

By Hanna Ziady, CNN Business
Updated 1603 GMT (0003 HKT) April 20, 2020


London (CNN Business)Virgin Atlantic and Virgin Australia will need government support if they're to survive the economic crisis triggered by the coronavirus pandemic.

Billionaire founder Richard Branson said Monday that the airlines need money from the UK and Australian governments to keep going "in the face of the severe uncertainty surrounding travel today," including the lack of clarity over how long planes will have to remain grounded.

In an open letter to employees, Branson said the survival of Virgin Atlantic and Virgin Australia was important to provide much needed competition to British Airways, an IAG (ICAGY) subsidiary, and Qantas (QABSY). "If Virgin Australia disappears, Qantas would effectively have a monopoly of the Australian skies," he noted.

Branson, who has already pumped $250 million into Virgin Group companies in response to the pandemic, said he would offer his Necker Island estate in the Caribbean as collateral "to raise as much money against the island as possible to save as many jobs as possible around the group."

Virgin Atlantic will seek a commercial loan from the UK government, which it will repay, Branson added, without giving details of how much money it needs.

"The reality of this unprecedented crisis is that many airlines around the world need government support and many have already received it. Without it there won't be any competition left and hundreds of thousands more jobs will be lost, along with critical connectivity and huge economic value," he said.

Travel bans and nationwide lockdowns have brought global aviation almost to a standstill, prompting dozens of airlines to ground planes and place workers on unpaid leave. The International Air Transport Association said last week that airline passenger revenues will be cut in half this year, tumbling by $314 billion from 2019.

Lufthansa (DLAKY), one of Europe's biggest airline groups, is permanently reducing the size of its fleet and shutting down one of its low-cost carriers, warning that the aviation sector will take years to recover from the crisis.

While US airlines will receive tens of billions of dollars in support as part of the country's $2 trillion stimulus package, governments in Europe have not promised wholesale bailouts to their carriers. Instead, individual airlines are tapping government support to pay staff salaries and raise debt.

Budget carrier EasyJet (ESYJY) said earlier this month that it had raised £600 million ($746.6 million) through the UK government's Covid Corporate Financing Facility. The government said it will consider the situation of firms on a case-by-case basis.

British Airways and Virgin Atlantic have furloughed some 38,000 staff between them and are relying on the government to pay 80% of these employees' wages.

A spokesperson for Virgin Atlantic said the airline is "exploring all available options to obtain additional external funding." The airline declined to comment on a Financial Times report that it had been told to resubmit its proposal for a £500 million ($622.2 million) coronavirus loan because the UK government was not satisfied with its initial bid.

Virgin Group operates in many of the sectors that have been hardest hit by the coronavirus pandemic, including aviation, leisure, hotels and cruises. "The challenge right now is that there is no money coming in and lots going out," Branson said. The company employs 70,000 people in 35 countries.

Branson has been criticized for seeking help from the government when he does not pay UK income tax because his primary residence is on Necker Island, which he bought when he was 29.

He addressed the criticism in his letter, saying that he and his wife Joan "did not leave Britain for tax reasons but for our love of the beautiful British Virgin Islands and in particular Necker Island." Virgin companies paid tax in the United Kingdom, he said.

Duit poket ber-billion, keluar dulu-la!

see how many offshore account he has

This is how he offload the property and hold on to more valuable assets and cash

Lol good point.

Island harder to sell.

But our local “entrepreneurs” more happy to close down business just so not to use their own assets and cash

Boom

What will Tony Fernandes offer as collateral?

The rich getting richer. Simple.


Wealth flows in ONE direction only. To 'entrepreneurs' coffers only. Never out.

Richfag : Hello government ayam in need of money. Ayam gip you my island as collateral.

Government : Nah we gip you bulu.

Richfag : Why gip ayam bulu. Ayam have lots of bulu.

Government : Well we have lots of islands.

This post has been edited by hotdayum: Apr 21 2020, 12:14 PM

His Korean wife

if PM8 Anwar, his buntut

i think i bought my first nokia fon when i was 29

Necker island really good for social distancing.

Billionaire ask for tongkat = ransom

Gov tak agree Then I TERPAKSA fire staffs or close down. Then I retire early or start new business after economy get better.

AA will do the same.

sama macam yang kat sini, mati-mati taknak keluar duit sendiri.

as expected la..u see ppl like tony air asia

he jst got over RM900 juta in end 2019...

but when AA got issue...seek help from other ppl also

then seek customer to take credit instead of cash

duit kat pocket sendiri diam aje

imagine if small business ppl do that - will u help?

And that's how the rich stay rich and get richer.

pulau pinang?

All AA stewardess