As the global pandemic continues to occasion travel bans leading to planes being grounded in different parts of the world, Sir Richard Branson, the British business magnate and founder of the Virgin Group has appealed for government support.
While making the appeal on Monday April 20, 2020, Branson stated that the company would collapse if it fails to get the necessary support from the government, stressing that it desperately needs it at this critical time.
“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,” Sir Richard Branson said in a letter to the Virgin Group employees.
Branson disclosed that the Virgin airline needs taxpayer support to secure over £500 million which would be in form of commercial loan for the company to keep running.
“This would be in the form of a commercial loan – it wouldn’t be free money and the airline would pay it back as easyJet will do for the £600 million loan the Government recently gave them, he said.
Speaking about other airlines around the globe that are in the same situation as his own company, Branson stated that those airlines had equally requested and received loans from their respective governments.
“The reality of this unprecedented crisis is that many airlines around the world need government support and many have already received it,” added Branson.
While speaking about foreseeable impact his company’s collapse would have on the country as a whole, Branson said many more jobs would be lost and that would in turn hugely impact on the country’s economy.
“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 explained.
