Virgin Group founder Sir Richard Branson has said his Virgin
Atlantic airline will need the support of the government to survive the
coronavirus pandemic, but stipulated he is not looking for “free money”.
In an open letter to Virgin Group’s more than 70,000
employees, Branson said he thought “it was important for you all to know the
actual facts” following public backlash over news that Virgin Atlantic seeking up
to £500 million in government support to get through a downturn in business
owing to the coronavirus outbreak. “The challenge right now is that there is no
money coming in and lots going out,” he added.
“Together with the team at Virgin Atlantic, we will do
everything we can to keep the airline going – but we will need government
support to achieve that in the face of the severe uncertainty surrounding
travel today and not knowing how long the planes will be grounded for.”
He emphasised that the airline is looking for a commercial
loan that would be paid back, adding that other carriers such as Easyjet have
already secured such loans under repayment terms.
“Without it there won’t be any competition left and hundreds
of thousands more jobs will be lost, along with critical connectivity and huge
economic value,” Branson added. “Virgin Atlantic started with one plane 36
years ago. Over those years it has created real competition for British
Airways, which must remain fierce for the benefit of our wonderful customers
and the public at large.
“Over the five decades I have been in business, this is the
most challenging time we have ever faced,” he said. “It is hard to find the
words to convey what a devastating impact this pandemic continues to have on so
many communities, businesses and people around the world. From a business
perspective, the damage to many is unprecedented and the length of the
disruption remains worryingly unknown.”
Many people have taken to social media to point out Branson’s
status as a billionaire, questioning whether or not he is doing enough to help
his own employees during the crisis. However, Branson said in his letter that
his net worth “is calculated on the value of Virgin businesses around the world
before this crisis, not sitting as cash in a bank account ready to withdraw”.
He insisted his own money is being invested along with cash from his businesses
“to protect as many jobs as possible”.
Branson said a “big part” of the US$250 million he injected
into his businesses last month went to Virgin Atlantic, which has grounded the
vast majority of its fleet and as of the beginning of April was only operating
three routes from its hub at Heathrow airport.
In his letter, Branson paid tribute to Virgin Atlantic
employees, many of whom have taken wage reductions or are on furlough under the
UK government’s coronavirus job retention scheme. Some of the airline’s cabin
crew have volunteered to help the NHS, as many of them have the necessary first
aid qualifications to assist doctors and nurses on wards.
Virgin Atlantic is also continuing to operate cargo flights
to transport key medical supplies into the UK.