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Beardy Branson is out with his begging bowl.
https://www.bbc.co.uk/news/business-52354865
He wants a £500million 'commercial loan' from the gov; has he talked with his bankers - have they rejected him?
Gov have, so far, said....no, go away and explore other options; the right response - let's hope they don't change their mind.
The pathetic open letter to all members of the 'virgin family' is a crude attempt at emotional blackmail.
Unlike most of the virgin branded businesses, branson has a chunky personal share in the airline business; he has 51% and Delta 49%.
He owns a Caribbean island and a spaceship.
Claims his wealth is in the form of assets and investments; liquidate some.
I find his approach particularly objectionable.
He has offered to use his island as security for the loan so it’s not entirely without risk.
VS has very little to offer up as assets, most, if not all of the fleet is leased and its already mortgaged up to the hilt.
In the good times as an airline it wasn't making money as others were so in the coming years to stand any chance of a return on the £500M it would require more and more loans to keep it afloat as its going to be slim pickings for airlines going forward IMHO.
I think the EasyJet grounded fleet / business maintenance costs are £30m a week? With those kinds of numbers and nothing coming in there’s only one way to go, given time.
Hope he gets the bail out. The orders for new Virgin aircraft powered by British engines is worth far more than £500m worth and an important order. All airlines are scrabbling around trying to save themselves at the moment rooting around everywhere for help, governments included. Virgin Atlantic are not unique in this. BA will be doing the same as well as Easyjet and all the other UK based airlines. I'm sure Branson has offered up everything and searched down the back of the sofa for loose change before asking the government for help. £500m is a drop in the ocean in the aerospace business. Leasing charges alone will be many millions of pounds a month. Virgin Group only has a 20% stake in the airline anyway, the rest being owned by Delta and Air France KLM who would quite easily sacrifice Virgin to save their own skins.
Willie Walsh - IAG/BA CEO has stated (categorically) they will not request any support.
I'm fully aware that £500mill in aerospace terms is washers but, given Beardy's business history I still think his approach is objectionable.
He speaks for 51% of the business; what about Delta with their 49%? They're in the brown and smelly stuff state-side
Kryters mentioned EasyJet; look at the dividend that once-loveable Stelios (recently) took on behalf of his family's shareholding having ignored requests to decline/defer.
Wobbli - for accuracy, Air France KLM are not shareholders - they pulled out of a possible deal in late 2019; I'm not referring to Virgin Group.
IF a covid-19 vaccine is eventually developed, what we're now going through will bring about
long-term changes; job losses, increased taxes, -ve equity, unsustainable personal and corporate debt, remote working and much more will have significant impacts on air traffic.
Then ask how many holiday destination hotels will survive.
If a vaccine is not developed, all bets are off - other than buying B&Bs in Skegness.
I hope the government says no. He is not a uk taxpayer. His uk companies never make a priftin the UK but the group, based in hiscoice of tax haven, makes all the money. The island valued at 20% of the loan value is hardly sufficient collateral imho. Perhaps he could liquidaeesome of his personal wealth and lend into the company
A company that does not contribute to our economy (by paying tax) should not be supported by us.
Let him sell his island if it's that valuable...
Seeing as his domicile for tax is the British Virgin Islands, then he should be going to them for support.