Virgin Group boss Richard Branson is offering his luxury Caribbean island resort as collateral to help obtain a UK government loan aimed at saving Virgin Atlantic. The airline has encountered significant challenges due to the profound impact of the COVID-19 pandemic on the aviation industry.
Branson is seeking a commercial loan from the UK, a move that comes after his other airline, Virgin Australia, entered voluntary administration. Its request for an AUS $1.4 billion (USD $887.39 million) Australian government loan was declined.
Situated in the British Virgin Islands, Necker is a breathtaking 74-acre island that functions as a lavish resort, accommodating up to 34 guests. With its pristine white sandy beaches, clear turquoise waters, and average temperatures around 30°C, it offers an idyllic escape. Branson acquired the island in 1979 and invested three years to convert it into a premier luxury destination. Faced with challenges impacting his airlines, he has proposed in an open letter to staff that the island could be mortgaged to secure necessary funds.
“As with other Virgin assets, our team will raise as much money against the island as possible to save as many jobs as we can throughout the group,” he explained. “The reality of this unprecedented crisis is that many airlines globally require government support, and many have already received it. Without it, there will be no competition left, resulting in hundreds of thousands more jobs lost, alongside vital connectivity and significant economic value.”
Branson added, “Together with the team at Virgin Atlantic, we will strive to keep the airline operational, but we will require government support to accomplish this amidst the severe uncertainty regarding current travel conditions and the duration of aircraft grounding. Over the past five decades in business, this is the most challenging period we have ever encountered. It is difficult to articulate the devastating impact this pandemic continues to exert on countless communities, businesses, and individuals worldwide.”
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