Government Bailouts will be required for multiple airlines by Mid-April. The 1st expected to request the assistance of government banks includes Virgin Atlantic. Associated loans would be £300 Million or higher. This information comes from the BBC, who received specialized data from an unnamed source. The source indicated that Virgin Atlantic would be one of many airlines that requests bailouts from the UK Government. Boris Johnson’s Parliament has already expressed that loans to airlines will be the last resort. Bailouts will be provided under the condition that internal investigations are held, ensuring that these airlines can’t operate themselves with remaining finances.
The UK Transport Secretary noted that the extensive valuations being requested would demand priority ownership in these airlines. This would mean the UK Government owns a majority stake in United Kingdom-based airlines. The backlash that faced the transport secretary was minimal, with naysayers mentioning that aggressive takeovers shouldn’t be implemented during Covid-19. The Transport Selection Committee noted that nothing is being ruled out for the aviation sector and that bailouts will most likely have high-internet payments. It’d allow the UK Government to earn additional funds on their loan.
Labour Ministers in Parliament have been asked if they’ll consider purchasing Airline Shares. Multiple individuals in this sector expressed that it’s essential to save these corporations during unprecedented circumstances. Implementing this kind of bailout would require the permittance of shareholders. Sir Richard Branson will more than likely agree to Virgin Atlantic paying out increased interest or providing shares to the UK Government.
Virgin Atlantic Airlines have implemented measures to protect funds, anticipating significant losses throughout the 2020 fiscal year. This included postponing the employment of multiple staff members. It should be noted that Virgin Atlantic previously requested £7.5 billion earlier this month from the UK Government. This bailout would’ve been managed through Credit Facilities. Sir Richard Branson, the Chief Executive Officer for the Virgin Group, is donating £250 million towards bailout relief funds for this airline. He’s internally confirmed that additional funds will be provided if Government Bailouts aren’t acquired by Mid-April.
Virgin Atlantic and British Airways are still operational until March 31st. They’ll be providing “Rescue Flights” to stranded British Citizens abroad in other countries. Those that cannot be acquired will receive monthly instalments of relief aid to ensure personal safety.