Sir Richard Branson has offered his privately owned Caribbean island as collateral for a government loan to ensure the survival of Virgin Atlantic.
Necker is located in the aptly-named British Virgin Islands in the Caribbean and was bought by the British businessman when he was just 29.
In an open letter to staff, the Virgin Group founder also highlighted the work done by his businesses around the world.
“Over time, we built our family home here. The rest of the island is run as a business, which employs 175 people. As with other Virgin assets, our team will raise as much money against the island as possible to save as many jobs as possible around the Group,” Sir Richard writes in his letter.
Virgin Atlantic has applied for a £500 million ($622 million) bailout from the British government, however, a final decision on whether it will be provided is yet to be made. Sir Richard‘s letter attempts to provide further incentive for the government to consider its application.
While he continues to place some pressure on the UK government, he has also directed his attention towards the Australian government as Virgin Australia sunk into voluntary administration.
Sir Richard writes in his letter, “The brilliant Virgin Australia team is fighting to survive and need support to get through this catastrophic global crisis. We are hopeful that Virgin Australia can emerge stronger than ever, as a more sustainable, financially viable airline.
“If Virgin Australia disappears, Qantas would effectively have a monopoly of the Australian skies. We all know what that would lead to.”
He has also released a video via Twitter attacking the Australian government and giving notice to its competitor Qantas.
“Well, I know only too well how devastating the news will be to you all. In most countries, federal governments have stepped in, in this unprecedented crisis for aviation, to help their airlines. Sadly, that has not happened in Australia. This is not the end for Virgin Australia and its unique culture,” he says during the video.
“Never one to give up, I want to assure all of you, and our competitor, that we are determined to see Virgin Australia back up and running soon.”
https://www.instagram.com/tv/B_OF9y5AEB9/?utm_source=ig_embed
The company’s current shareholders include Singapore Airlines, China’s HNA Group and Nanshan Group, Etihad and Sir Richard’s Virgin Group, which together hold 90 per cent of the company.
Early on Tuesday morning, the business’ administrator, Deloitte, confirmed it has been in discussions with a number of investors.
John
says:Hey Richard, Virgin is a privately owned company by 4 or 5 groups, including yourself who receives a kickback just for naming rights. If it’s such a good investment, kick in the extra 5 billion dollars yourself.
Bernard
says:All so disappointing. Sir Richard needs a new set of mates to run Virgin Aust. As it was it seems like a tax dodge that went too far-kids in lolly shop who over ate and now need stomachs pumped-particularly HNA. Share price deliberately kept low in my view which didn’t help. Mum and dad investors won’t/shouldn’t forget this. If I remember correctly was it not Singapore’s Tiger Air mess which had to be fixed by Vigin Aust? So, I wouldn’t count on Singapore/ HNA. Etihad are probably regretting investing? I’m sure many others would relish the chance to run Virgin properly considering the mess it’s ended up virus or no virus. Hopefully Deloitte will be transparent.