Virgin Group said it had hired investment bank Houlihan Loukey to find new investors for Virgin Atlantic, but denied a report that billionaire Richard Branson's holding company is looking to sell the airline.
“Richard and Virgin Group are committed to the airline and do not want to sell Virgin Atlantic”, said a spokesperson via email. “They recognize that more investment will be needed to offset the total loss of revenue due to Covid-19″.
According to the Telegraph newspaper, Branson is looking for a buyer by the end of May and is effectively giving up the loan through the UK government, where he has applied for around £500 million in state aid.
Virgin Atlantic has only ed profits three times over the last decade, while British Airways has risen to record profitability.
British Airways owner IAG is not asking for government , although it is furloughing workers to enter the government relief program. EasyJet, also profitable, received a £600m loan.
In an open letter to employees, Branson said Virgin Atlantic would not survive without help and even offered his private island, Necker Island, as collateral against a loan.
In an attempt to instil confidence in the airline's viability, Branson has made the government an offer it can't refuse, or so he hopes. The British Virgin Islands tycoon today pledged his own private island, Necker Island, as collateral against a government loan.
