Virgin Atlantic is working to secure a deal worth £1 BN. The package includes a cash injection from Richard Branson, whom has previously stated that he is not able to provide any cash support to any of his airlines.
Virgin Atlantic Vs Government
Since the start of the covid-19 pandemic Virgin `Atlantic has been requesting for bailout funds from the UK government, all requests have been denied. However, this weekend the airline has been working hard to negotiate a bailout with major US-based payments group. With the global aviation industry facing a crisis like no other, governments across the world have been supporting their airlines. Nevertheless, the UK government has taken a completely different approach and has not approved any bailout requests-which has lead to the collapse of Flybe.
Verdict by Tuesday
This is welcome news and could be confirmed as early as tommorow (14/7/20). The deal is for a period of four years and it aims to ensure the airline’s survival, even if it can’t fly to the US before 2021; which is where most of its destinations lie.
If this Bailout can be secured it will protect many jobs within the airline, which has already cut 3,150 jobs to date withdrawn from London Gatwick and has been shrinking the size of its fleet. What do you think about this news? Let us know in the comments.