The Guarding, UK newspaper, has a weekday podcast “Today in Focus” that dedicated its most recent episode, whether the UK should save Virgin Atlantic.
There has been a social media backlash in the UK when Virgin’s founder, Sir Richard Branson, has demanded government bailout money to save the airline despite being a billionaire living in a Caribbean tax haven.
You can access Guardian’s page for podcasts here.
Here’s how Guardian describes this episode:
The billionaire Sir Richard Branson, who founded Virgin Atlantic in 1984 and retains a 51% stake alongside US airline Delta with 49%, is pleading for UK government support. But the plea has prompted a substantial backlash, with many pointing out that the entrepreneur has paid the exchequer no personal income tax since moving to the tax-free British Virgin Islands 14 years ago.
The Guardian wealth correspondent, Rupert Neate, tells Anushka Asthana about the founding of Virgin Atlantic and why, along with many other airlines, it finds itself in such financial peril. Rupert says that if the company is unable to secure financial help, it may go bust.
Here’s what has happened earlier:
Virgin Atlantic Collapses Unless UK Government Chips-In
Virgin Atlantic Collapses By The End Of May Unless New Cash Found
Conclusion
The Guardian is considered left-leaning UK newspaper that is part of my news diet along with WSJ, Financial Times, New York Times, Washington Post, and few others.
It doesn’t help Sir Richard that he sharply demanded in the late 2000s that the UK government should not use cash to bail out British Airways.
The UK has already bailed out EasyJet (£600M) and Wizz Air (£300M) by extending them loans. British Airways, with its strong balance sheet, could be in a situation where it doesn’t even need any.
It is certainly interesting whether Virgin Atlantic can convince the UK to extend them the £500M, and whether that even would be enough to see them through this pandemic.
Its pretty appalling that the govt wont give the money to virgin but will give the money to wizz, who are hungarian, who dont even need the money and are using it to just pay off loans that have a higher interest rate, especially when it all comes down to semantics that prevents virgin from being eligable to just claim the money the same way wizz and eeasyjet can.
Totally agree. They will happily let go under a strong UK brand that provides thousands well paid UK jobs, pay taxes and crucial for a market balance but rather give money to a foreign company that bases 10 aircraft in the UK and doesn’t need money (Wizz will likely use funds to refinance). Pathetic.
no branson pathetic there will be new airlines. and 49% owned by delta.if it was profitable he would plough his own money back in.covid19 will bring loads of company to light.
virgin have no money it that simple
Also, he hasn’t “Demanded” a loan, he has asked for one and put his private island up for collaterol against the loan, so if he defaults then they can have a tangible asset – unlike many of the other airlines that will only have unwanted planes left – as there will be a glut of aircraft for the next couple of years ast least due to the current problems.
Compare that to British Airways, who have also “Demanded” a loan and in addition have announced up to 12,000 job losses out of 42,000 even with the loan and have discussed pulling out of Gatwick all together.
Just because a company is owned by an individual doesn’t mean it cannot trade in exactly the same way as companies that are owned by share holders and request the same rights.
what the left fails to grasp is the benefit to Branson is spinoff. The real beneficiaries are the thousands of employees both direct and indirect that will lose their jobs, paychecks, retirements etc.
The “left” gets it. What you fail to get is you are privatizing profits and socializing risk and losses- disgusting! The newly recapitalized Virgin will still have employees after emerging from bankruptcy.
I think they should bail out Virgin for the simple reason of preventing BA from having an even stronger monopoly on long-haul flights from the UK. Without Branson competing with them, BA can charge even more ridiculous prices for their premium seats.
There is do much competition where have u been for last ten years.virgin airlines ain’t cheap.and trade with no money. Sorry it got to go
This makes me sick! Let Virgin go bankrupt and be recapitalized. A tax dodging billionaire deserves nothing!
Do you actually understand that Branson or any other billionaire is not exactly Scrooge McDuck? He doesn’t really have a pool filled with 2 billions in coins to jump in. All his wealth is in the value of companies he fully or partially owns. His share at VS was worth 250-300M euros at best times, currently about zero (and you cannot blame him for that).
Why so much hate towards Branson? First we’re not talking about his personal bailout but Virgin Atlantic, a UK company that pays taxes, employs thousands and vital for a market. Second, you and other lefty snowflakes seem to be totally fine with Stellios or some Hungarian daddies getting cash from UK taxpayers for some reason. Ok I got it you hate Branson. That’s fine. Bad news. Branson will be fine even in case VS goes under. Thousands of UK residents out of well paid jobs and UK consumers at large will loose.
First of all, what is with the name calling? You don’t know me. Second, I have zero affection or animosity towards Branson. I am a pure market capitalist and oppose ALL of these bailouts, not just his. Let them go bankrupt and recapitalize. Some win and some lose – if you don’t like it go to China!
it is very simple virgin have been trading for many years with no money relying on deposit.to keep going every month everythink is leased.so would you lend money to Someone that’s got no money. Like the banks have to have a health check..virgin would fail. The competition is massive. One of the best is Emarates the reason why say jet /wizz got loans is because they have money in the bank to back it up.as a garuntee.branson has nothink his island is worth 80 million which will be covered in water in the 10years plus. Think off all the small company where u live that are going bust.is the government helping them..sorry we can not bail him out.
Finally a voice of reason!
Why has the government bailed out Wizz Air when it is not even British. The company is Hungarian and should have been bailed out by their own government and not ours. The UK should consider giving Virgin Atlantic a loan to see them through this pandemic as they have with others.