' Virgin atlantic wants a loan / Richard Branson '

Why doesn't Branson put his hand in his own pocket cheeky bugger




Coronavirus: Virgin Atlantic will fold without aid, warns Branson

Monday 20th April 2020


Sir Richard Branson has warned that airline Virgin Atlantic needs government support to survive.

The boss of the Virgin Group said he was not asking for a handout, but a commercial loan, believed to be £500m.

In an open letter to staff, Sir Richard said: "Many airlines around the world need government support and many have already received it.

The plea comes as Virgin Australia, the country's second largest airline, faces going into administration without aid.

Sir Richard wrote in his letter that without UK government support for Virgin Atlantic "there won't be any competition left and hundreds of thousands more jobs will be lost".
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Virgin Atlantic - which is owned jointly by Sir Richard and US carrier Delta - has reportedly asked for £500m in aid. However, according to an FT report last week, the request has been rejected by the Treasury.

It said the airline had not done enough to show it had explored other options to bolster cash before asking for state aid.
Government support

In his letter to staff, Sir Richard said: "We will do everything we can to keep the airline [Virgin Atlantic] 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.

"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 £600m loan the government recently gave them)."

He pointed out that Virgin Atlantic started with one plane 36 years ago, before adding: "Over those years it has created real competition for British Airways, which must remain fierce for the benefit of our wonderful customers and the public at large."

Sir Richard offered to inject £250m into the Virgin Group last month, with most of that going to the airline.

Earlier this month, Rolls-Royce, Airbus, Heathrow airport and Manchester Airports Group sent letters to the government highlighting the importance of Virgin Atlantic to the UK's manufacturing supply chain.
Australia struggles

Meanwhile, it has been reported that Virgin Australia - in which Sir Richard holds a stake of around 10% - is close to going into administration after being refused help by the Australian government.

The carrier has been forced to cancel nearly all of its flights during the coronavirus crisis and been unable to restructure its debts.

The Australian government refused a request from the company for a A$1.4bn (£720m) loan.

The airline - which employs about 16,000 - is part-owned by Sir Richard along with Etihad, Singapore Airlines and China's HNA.

"The brilliant Virgin Australia team is fighting to survive and need support to get through this catastrophic global crisis," Sir Richard said.

"We are hopeful that Virgin Australia can emerge stronger than ever, as a more sustainable, financially viable airline."

He warned: "If Virgin Australia disappears, Qantas would effectively have a monopoly of the Australian skies. We all know what that would lead to."
Image copyright Getty Images

Sir Richard also addressed the fierce criticism he has faced in recent weeks over his tax situation.

Critics have pointed out he has paid no UK income tax since moving to the tax-free British Virgin Islands 14 years ago.

Sir Richard is the 312th richest person in the world with an estimated $5.2bn fortune, according to the Bloomberg billionaires index.

"I've seen lots of comments about my net worth - but that is calculated on the value of Virgin businesses around the world before this crisis, not sitting as cash in a bank account ready to withdraw," he said.

"Over the years significant profits have never been taken out of the Virgin Group, instead they have been reinvested in building businesses that create value and opportunities."

Turning to the question of living abroad he said: "Joan and I did not leave Britain for tax reasons but for our love of the beautiful British Virgin Islands (BVI) and in particular Necker Island, which I bought when I was 29 years old, as an uninhabited island on the edges of the BVI.

"Over time, we built our family home here. The rest of the island is run as a business, which employs 175 people."

Why doesn't Branson put his hand in his own pocket cheeky bugger
Coronavirus: Virgin Atlantic will fold without aid, warns Branson

Sir Richard Branson has warned that airline Virgin Atlantic needs government support to survive.

The boss of the Virgin Group said he was not asking for a handout, but a commercial loan, believed to be £500m.

In an open letter to staff, Sir Richard said: "Many airlines around the world need government support and many have already received it.

The plea comes as Virgin Australia, the country's second largest airline, faces going into administration without aid.

Sir Richard wrote in his letter that without UK government support for Virgin Atlantic "there won't be any competition left and hundreds of thousands more jobs will be lost".
Skip Twitter post by @richardbranson
Report



Virgin Atlantic - which is owned jointly by Sir Richard and US carrier Delta - has reportedly asked for £500m in aid. However, according to an FT report last week, the request has been rejected by the Treasury.

It said the airline had not done enough to show it had explored other options to bolster cash before asking for state aid.
Government support

In his letter to staff, Sir Richard said: "We will do everything we can to keep the airline [Virgin Atlantic] 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.

"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 £600m loan the government recently gave them)."

He pointed out that Virgin Atlantic started with one plane 36 years ago, before adding: "Over those years it has created real competition for British Airways, which must remain fierce for the benefit of our wonderful customers and the public at large."

Sir Richard offered to inject £250m into the Virgin Group last month, with most of that going to the airline.

Earlier this month, Rolls-Royce, Airbus, Heathrow airport and Manchester Airports Group sent letters to the government highlighting the importance of Virgin Atlantic to the UK's manufacturing supply chain.
Australia struggles

Meanwhile, it has been reported that Virgin Australia - in which Sir Richard holds a stake of around 10% - is close to going into administration after being refused help by the Australian government.

The carrier has been forced to cancel nearly all of its flights during the coronavirus crisis and been unable to restructure its debts.

The Australian government refused a request from the company for a A$1.4bn (£720m) loan.

The airline - which employs about 16,000 - is part-owned by Sir Richard along with Etihad, Singapore Airlines and China's HNA.

"The brilliant Virgin Australia team is fighting to survive and need support to get through this catastrophic global crisis," Sir Richard said.

"We are hopeful that Virgin Australia can emerge stronger than ever, as a more sustainable, financially viable airline."

He warned: "If Virgin Australia disappears, Qantas would effectively have a monopoly of the Australian skies. We all know what that would lead to."
Image copyright Getty Images

Sir Richard also addressed the fierce criticism he has faced in recent weeks over his tax situation.

Critics have pointed out he has paid no UK income tax since moving to the tax-free British Virgin Islands 14 years ago.

Sir Richard is the 312th richest person in the world with an estimated $5.2bn fortune, according to the Bloomberg billionaires index.

"I've seen lots of comments about my net worth - but that is calculated on the value of Virgin businesses around the world before this crisis, not sitting as cash in a bank account ready to withdraw," he said.

"Over the years significant profits have never been taken out of the Virgin Group, instead they have been reinvested in building businesses that create value and opportunities."

Turning to the question of living abroad he said: "Joan and I did not leave Britain for tax reasons but for our love of the beautiful British Virgin Islands (BVI) and in particular Necker Island, which I bought when I was 29 years old, as an uninhabited island on the edges of the BVI.

"Over time, we built our family home here. The rest of the island is run as a business, which employs 175 people."

Roger,

Branson cant get stuffed.

Looks like the treasury has turned him down, good on them

Looks like the treasury has turned him down, good on them

Grade one prick and what about Beckham's attention seeking wife wanting to furlough her staff in a fashion boutique???

Looks like the treasury has turned him down, good on them

Very considerate. I am sure 10,000 Virgin Atlantic employees and there families will be thinking the same.

As much as people might want Branson to stump up, it doesn't work that way. Virgin Atlantic Limited is just that,,,,a limited company. If it went tits up, Branson, as a shareholder, would end up with limited personal liability. It is not his personal responsibility to fund it. And in any event, he makes a point. Without VA, BA have a transatlantic stranglehold from UK.

Everyone moaned about Govt not sopporting Bristish Steel, in normal circumstances, competing against state funded competition al be it. But they employ only 5,000.

A resonable request in these unique times.

He may well get it, as they’re re- submitting. Was reading about this the other day, and they also provide essential freight services to UK companies...the other issue will be the demand levels for air travel post virus.

Looks like the treasury has turned him down, good on them

Very considerate. I am sure 10,000 Virgin Atlantic employees and there families will be thinking the same.

As much as people might want Branson to stump up, it doesn't work that way. Virgin Atlantic Limited is just that,,,,a limited company. If it went tits up, Branson, as a shareholder, would end up with limited personal liability. It is not his personal responsibility to fund it. And in any event, he makes a point. Without VA, BA have a transatlantic stranglehold from UK.

Everyone moaned about Govt not sopporting Bristish Steel, in normal circumstances, competing against state funded competition al be it. But they employ only 5,000.

A resonable request in these unique times.

This. I work for Virgin Atlantic, they have an office in Swansea. it isn't nice seeing so many people consistently commenting how great it is going to be when i lose my job. He isn't a majority shareholder or a director of VS anymore anyway.

Sell his F***ing island then!
He has a net worth of £5.2 Billion!!
He's furloughed Virgin Atlantic staff.
Time to 'Furlough' into your deep pockets Richard!
Greedy b*stard!

Sell his F***ing island then!
He has a net worth of £5.2 Billion!!
He's furloughed Virgin Atlantic staff.
Time to 'Furlough' into your deep pockets Richard!
Greedy b*stard!

Exactly, there are thousands of people out there a lot more than virgins 10,000 employees and they do not have £5.2Billion and maybe he is not the majority share holder but why would we bail out Virgin atlantic (owned by the virgin group) when he only holds 20% along with Delta, Air France/Klm, British taxpayer to loan three foreign companies, I don't think so! I am sure that between these companies, they all have enough money especially after laying off thousands (virgin furloughing theirs)
Virgin Atlantic is owned by the Virgin Group (20%), Air France-KLM (31%) and Delta Air Lines (49%).
Greedy sods

Looks like the treasury has turned him down, good on them

Very considerate. I am sure 10,000 Virgin Atlantic employees and there families will be thinking the same.

As much as people might want Branson to stump up, it doesn't work that way. Virgin Atlantic Limited is just that,,,,a limited company. If it went tits up, Branson, as a shareholder, would end up with limited personal liability. It is not his personal responsibility to fund it. And in any event, he makes a point. Without VA, BA have a transatlantic stranglehold from UK.

Everyone moaned about Govt not sopporting Bristish Steel, in normal circumstances, competing against state funded competition al be it. But they employ only 5,000.

A resonable request in these unique times.

This. I work for Virgin Atlantic, they have an office in Swansea. it isn't nice seeing so many people consistently commenting how great it is going to be when i lose my job. He isn't a majority shareholder or a director of VS anymore anyway.

sounds like a lot but honestly most people are pretty level and realise there is always more to it than a sensational headline...
there is a saying...take it from where it comes from. hope you don't lose your job mate.

I would give it to him, as it’s going to be a loan and if it protects the 10,000 jobs , then I think it’s worth it.

Cant see them going bust, to much to lose.

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:evil:

Anyone actually know why he sued the NHS?

:evil:

Anyone actually know why he sued the NHS?

applied for an NHS contract but was proved to have been tucked up...

The British government should loan him the money to save the 1000s of jobs only condition is you put your island up as a bond for failure to pay and you pay all your taxes in the uk from now on. When a firm goes bust all the business usually gets bought up by another firm anyway safe guarding jobs.
the one thing that as stuck out in this crisis is the way the super rich have pulled up the draw bridge and protected their personal wealth and couldn't give a f~~k about their workforce and claimed tax payers money,there is going be a case for some windfall taxation on these f##kers after this.

Richard Branson
1. Hasn't paid a penny in income tax to this country for 14 years.
2. 49% of Virgin Atlantic owned by Delta Airlines an american company, Branson owns 20% the rest KLM.
Go and ask Trump!

Richard Branson
1. Hasn't paid a penny in income tax to this country for 14 years.
2. 49% of Virgin Atlantic owned by Delta Airlines an american company, Branson owns 20% the rest KLM.
Go and ask Trump!

do any of the companys he is involved in pay tax ? I honestly do not know
.
and what about the thousands of employees...

The air industry has gone and is going take a decade to probably recover,as long as he puts up enough assets to cover a default on the loan i can not see what the problem is .When you think the government has backed the loan to buy scheme for the house builders for the last 10 years which has pushed up house prices and are now going be faced with anything up to a 50% drop in the housing market that is going make the money spent already look like penny's.

Virgin is registered in the BCI, but his employees pay tax here. Plus the supply chain, so it’s hundreds of millions p/a in exchequer returns. Also in freight supply to UK businesses.

I like him, because he gave the Pistols a chance when they were a hot potato.. changed Britain that.

Why on earth should we loan £500m to Delta (49%) Air France/KLM (31%) two foreign companies, let the USA and France and the nertherland governments lend them the money

He sued the NHS, so bollocks to him.

I work in the industry for Emirates Group. This is putting into a different perspective.

This is from an individual that I have known within Virgin Atlantic for a long time.

It really is a worrying time for everyone, and the Travel Industry landscape is about to change as we know it for a very long time.

Sorry, it’s a long read:

Like me, I’m sure most of you who are reading this will agree that the world we are living in at the moment seems a strange and surreal place. Never before in our generation have we had to endure anything like COVID-19 and it is totally alien to our normal way of life.
I for one, am trying my best to stay sane and positive...though it’s starting to get a little testing.

Adding to the frustration and stress that EVERY SINGLE ONE of us reading this are dealing with during this time (not only are we worried about the health of our family and friends but the continuous uncertainty to secure our livelihoods) myself and my colleagues at Virgin Atlantic have had to endure the added pressure of FAKE NEWS relating to the “boycotting” of the airline due to what some people THINK they know.

These people seem to have become the new UK Chancellor overnight, claiming that the government shouldn’t help Virgin Atlantic because Sir Richard Branson is a “billionaire and doesn’t pay UK tax”

So firstly, I am by no means an expert on governmental financial affairs nor am I a close friend of Sir B’s.
But, before certain people try and put me and my colleagues out of work in the careers that we love, here’s a few facts from me that the media (and the likes of Katie Hopkins amongst many others) seem to emit or just don’t seem to understand:

- Richard Branson doesn’t own Virgin Atlantic outright anymore, he hasn’t done for many years!! He is not the CEO nor does he have any involvement in the day-to-day running of the airline. He was the founder, a figure head and now mostly used for publicity purposes.

- Branson is a shareholder with numerous other individuals who make up the Virgin Group which owns 51% and Delta Airlines having the remaining 49%

- Richard Branson has already invested £250million into the Virgin Group to help with this situation and help safe guard OUR jobs!!

- He may be worth £4billion on paper, as often reported in the news, however, that doesn’t mean all that cash is sat under his mattress in the Caribbean. It is most likely tied up in almost 70 companies holding the Virgin name, many of which are struggling, the same as Virgin Atlantic at this time.

- Virgin Atlantic isn’t about making huge profits, it never has been. Virgin invests constantly in new aircraft, products and training to provide the best customer service and to provide an alternative for customers in the UK airline market. It doesn’t have a bottomless pit of money to survive no matter if Richard put all his money into it, all the while having no revenue coming in.

- Virgin Atlantic is a UK based and majority owned UK airline that pays annually £350million to HMRC whilst employing 10000+ people and boosting the UK’s economy with revenues of £3billion.

- Even at this time when Virgin’s flight schedule has had to reduced due to travel restrictions around the world to only 3 routes and having the majority of its fleet of aircraft grounded, high costs still have to be paid. As an example, Virgin Atlantic has to pay £140million annually in airport charges not to mention leasing costs, wages, fuel etc.

- The airline industry as a whole has seen the biggest decline in its history, with airlines worldwide having to secure money from their governments. TUI have just secured €1.8billion from the German government and Emirates are being supported by the UAE and many more globally following suit.

- EasyJet (and others) are also needing help, the biggest airline in the UK with over 300 aircraft. Virgin in comparison have around 37 planes yet we should be left to fend for ourselves because of our “rich boss”

- As a company, Virgin Atlantic took the proactive approach when all this chaos first started by reducing their costs by £500million, including us, as employees, agreeing to take unpaid leave and pay cuts to help save the jobs we love. Virgin Atlantic even offered us ways of coping during this crisis financially before the government announced their ‘Furlough Pay’ scheme. Not like the media made out that “Branson isn’t paying his staff”

- Virgin Atlantic provides a QUARTER of all long haul cargo that comes in and out of the UK. Cargo that includes essential pharmaceutical goods, fresh groceries including exporting the majority of the UK’s salmon overseas, car parts and electronics amongst many more. Just yesterday Virgin Atlantic did the first flight of any UK airline to collect much needed PPE and medical equipment for the frontline NHS workers from China.

- Virgin Holidays is the No 1 provider of package holidays to Florida and also serves 400,000 annual holidaymakers to destinations around the world. Think about this when you’re not wanting the government to help when it comes to that holiday we are all desperate for when all this is over.

- Virgin Atlantic is the UK’s second flag carrying airline and the only real competitor to British Airways in long haul travel. Without Virgin, BA has a monopoly like back in the 1970’s, giving you NO choice of airline, increasing flight prices for individuals and import/export cargo expenses for business.

- For those of you like me here in the North-West, Virgin Atlantic is the biggest long haul operator out of Manchester Airport and a huge part of the airports massive expansion. With the demise of Thomas Cook and Monarch Airlines in recent times (which btw, Virgin Atlantic offered these redundant employees jobs and helped repatriate thousands of passengers stranded around the world back to the UK when other airlines wouldn’t) this would hinder the economy of not only the UK but the North-West in particular.

- Tens of thousands of people in other industries rely on Virgin Atlantic and Virgin Holidays both in the UK and overseas. Airport employees including baggage handlers, ground agents, engineers, catering companies, fuelers, not to mention 57 Virgin Holidays outlets, the list and knock on effect goes on and on.

- Rolls Royce and Airbus both based in the UK have recently announced that they would suffer financially without Virgin Atlantic. Virgin have numerous new aircraft on order with engines and wings assembled at facilities in the UK.

- Then there’s the non-financial community aspects of Virgin Atlantic. Most recently Cabin Crew have been asked by the government to volunteer at the new NHS Nightingale Hospitals set up around the country due to our medical training, with 100’s coming forward to offer their assistance.

- The endless amount of charity work and funding Virgin Atlantic provides to local and international organisations that never gets spoken about.

This is just the tip of the iceberg and you may be thinking why am I so bothered about these silly comments and views of narrow minded people.

The reason is, I love my job, I love the people I work with and I love Virgin Atlantic!

I want my friends reading this to know that if you see a post that talks about boycotting Virgin Atlantic or one that doesn’t want the UK government to support us financially if this COVID-19 continues to effect us, because of what they THINK they know about one famous individual...
Maybe have a think about me as your friend and thousands of my colleagues who will personally suffer if, we as a country were to let another airline collapse through no fault of its own.

At a time when we are supposed to be “All In This Together” lets not spend time spreading a vendetta against a company people THINK they know about, only to end up hurting the innocent people who work and support that company in the wake of it all.

To have Virgin Atlantic “boycotted” or not supported, potentially leaving tens of thousands of people including me, out of work because of a pandemic that has effected almost every single person around the world, I feel is morally wrong.

In a time when only a few weeks ago we were portraying to each other to #BEKIND should we not focus on getting though this crisis together, supporting every business and individual we can to make sure that when this is all over, we can go back to that life we all took so much for granted?!

The British government should loan him the money to save the 1000s of jobs only condition is you put your island up as a bond for failure to pay and you pay all your taxes in the uk from now on. When a firm goes bust all the business usually gets bought up by another firm anyway safe guarding jobs.
the one thing that as stuck out in this crisis is the way the super rich have pulled up the draw bridge and protected their personal wealth and couldn't give a f~~k about their workforce and claimed tax payers money,there is going be a case for some windfall taxation on these f##kers after this.

Well said

Virgin atlantic which is part of the virgin group registered in a caribean tax haven, so perhaps someone can correct me, but it seems virgin atlantic does not pay uk tax!

Richard Branson moved assets from the U.S. to the British Virgin Islands, highlighting his use of tax havens at a time one of his businesses sought a state bailout because of the coronavirus pandemic.

Filings show a Delaware-based company for his $1.1 billion stake in Virgin Galactic Holdings Inc. transferred shares in the space-travel firm on March 16 to the Caribbean territory where Branson, 69, lives. Residents in the BVI pay no income or capital-gains taxes while the U.S. state is known for preserving the privacy of its corporate owners.

Virgin Galactic became the first publicly traded space-tourism firm last year after merging with a listed investment vehicle, and the Delaware holding company was set up for that transaction.

Richard Branson during Virgin Galactic Holdings Inc.’s initial public offering on the floor of the New York Stock Exchange.

The move is unrelated to Branson’s request for British backing for Virgin Atlantic Airways Ltd., and many of his businesses do pay U.K. tax. He’s also pledged $250 million to support his group’s operations since transferring his shares in Virgin Galactic.

“This is as an internal reorganization that has no effect on our ownership interest,” a representative for Branson said. “Rather than continuing to hold the shares indirectly, we undertook this exercise to eliminate indirect ownership through that subsidiary, as the U.S. entity was no longer necessary.”

Virgin Atlantic, Branson’s airline, has been hard hit by the pandemic. Last month, consultations with staff saw employees agree to take eight weeks unpaid leave. The company has requested that the British government provide hundreds of millions of pounds in government-backed loans and credit guarantees, part of a broader request for the aviation industry.

”For the public, the concern may be more that the owner of global businesses appears happy to structure his ownership

Branson has started businesses from fizzy drinks to bridal gowns. His rocket company, Virgin Orbit LLC, is now looking to join the rush to make ventilators for the virus crisis, while Virgin Atlantic’s CEO is taking a temporary pay cut.

“This is the most significant crisis the world has experienced in my lifetime,” Branson said in a March 22 blog post. “Because many of our businesses are in industries like travel, leisure and wellness, they are in a massive battle to survive and save jobs.”

He sued the NHS, so bollocks to him.

They settled out of court......which suggests he may have right!!

Great post from NorthWalesBlue. Why are people so blinkered in their opinions?

The £500 million would be way better spent in other areas if we have to bail out any companies then the one who pay tax in this country should be top of the list.

The £500 million would be way better spent in other areas if we have to bail out any companies then the one who pay tax in this country should be top of the list.

Agree!
He moved everything to avoid paying tax.
Now its gone tits up he is asking the British Govt for help!
No tax. No loan!

This virus has brought out the best in a lot of people but the worst in others,unfortunately if it did go through lots of redundancies and lots of sad people who have booked with them.