Categories: Travel

Virgin Atlantic, other UK airlines beg for bailout

Last updated on September 11th, 2021 at 02:59 pm

Virgin Atlantic is leading Britain’s airline industry to request for emergency government support worth up to £7.5 billion and avert a catastrophe that would wipe out tens of thousands of jobs.

Sky News and other news outlets reported on Saturday that Peter Norris, the chairman of Virgin Atlantic Airways’ majority shareholder, Virgin Group, will write to Prime Minister Boris Johnson on Monday to warn that the sector needs immediate financial aid to survive.

The bailout request will come ahead of what could prove to be the bloodiest week in British aviation history, with British Airways, Virgin Atlantic, easyJet and Ryanair all expected to announce mass groundings of aircraft and potentially huge redundancies as the COVID-19 crisis escalates.

Mr Norris’s letter – which is also understood to be being signed by Shai Weiss, Virgin Atlantic’s chief executive – would ask the government to provide airlines with a credit facility to help them finance themselves through a potentially protracted period of negligible revenue.

That support, which the Virgin chairman estimates would be worth between £5bn and £7.5bn across the industry, would include cash advances and guarantees, as well as other measures to ensure that credit card companies do not continue to hoard revenue from airline bookings.

Under Mr Norris’s blueprint, this emergency financing would be repaid once trading returns to more normal levels.

Mr Norris would also ask the PM to extend the timetable for allowing airlines to keep planes grounded without losing their prized take-off and landing slots for the entire summer season.

The trade body IATA has estimated that the airline industry globally could forfeit $113bn in revenue as a result of COVID-19 – a figure it may have to increase again.

(SkyNews)

Albert Echetah

Recent Posts

Famine Risk Reaches Critical Levels as FoodCrisis Deepens In Gaza

Gaza’s hunger crisis is not only statistic, but a set of narratives such as Yasmin Eid, amother of six, who…

November 22, 2024

Kenya Launches Official Probe intoUgandan Leader’s Alleged Kidnapping

The government of Kenya announced that it is looking into the suspected kidnapping ofKizza Besigye, a well-known opposition politician from…

November 22, 2024

At least 7 members of the Nigerian security forces are missing after insurgentsambushed their convoy

A team of 80 security agents tasked with protecting the electricity grid was ambushed onMonday in Shiroro, Niger State, by…

November 21, 2024

Cryptocurrency Gains Momentum inAfrica Amid Global Shifts in Trump’sElection

Cryptocurrency becomes the new thing in Africa. People shift for stable alternatives aftertheir unstable local currencies. Many people believe Donald…

November 21, 2024

UAE Delivers Lifeline: 30,000 Food BasketsBring Hope to Sudanese Refugees in Uganda

UAE has also distributed 30,000 food baskets to Sudanese refugees in Kiryandongo refugeecamp Uganda to benefit nearly 100,000 affected people.Aid…

November 21, 2024

Turkey wants to increase its trade with Africa to 50 billion dollars

The trade volume between Türkiye and 54 African countries has grown sevenfold, reaching $37 billion from 2003 to 2023, Yılmaz…

November 20, 2024

This website uses cookies.