Branson to pump in £200m to save his struggling airline
SIR RICHARD BRANSON is set to inject £200m into Virgin Atlantic as part of a deal to save the embattled airline.
The cash boost comes as the carrier is attempting to finalise a broader refinancing package worth about £1bn.
Delta Air Lines, which owns a minority stake in Virgin, will make a £400m commitment, the Financial Times reported. The commitment is likely to be in the form of deferred payments such as brand fees and shared IT and backoffice platforms.
A spokesman for the carrier said: “Virgin Atlantic has been working on a comprehensive, solvent recapitalisation of the airline to ensure that we can continue to provide essential connectivity and competition to consumers and businesses in Britain and beyond.”
The airline is leaning towards a rescue package led by Wall Street hedge fund Davidson Kempner Capital Management, Bloomberg reported. A spokesman for Davidson Kempner declined to comment.
The pandemic has hammered the aviation industry and its recovery is expected to be slow as governments continue to enforce travel restrictions.
Business yesterday warned that Britain’s two-week quarantine rule threatens the economy’s ability to bounce back from a deep recession and must be reformed as soon as possible.
A survey by the Institute of Directors found 86pc of businesses believe the quarantine will have a negative effect on the economy by making short trips impossible.
As ministers prepare to allow travel to and from some low-risk countries without quarantine via an “air bridge” scheme, bosses warned that the proposals must go ahead without further delay.