Arab Press

بالشعب و للشعب
Thursday, Nov 13, 2025

Virgin Atlantic seeks bailout in coming days

Virgin Atlantic seeks bailout in coming days

Virgin Atlantic is expected to ask for a government bailout worth hundreds of millions of pounds in the coming days, the BBC understands.

Requests for state aid are also expected from other airlines.

The government has said it will only step in to help struggling airlines "as a last resort" on a case-by-case basis.

However, the Transport Secretary told MPs he can't rule out the state taking an ownership stake in UK airlines that have been battered by coronavirus.

Grant Shapps told MPs on the Transport Select Committee that nothing had been ruled out in its response to coronavirus for the aviation sector.

Asked by Labour MP Ruth Cadbury if the government would consider buying a share of UK airlines that face collapse, Mr Shapps said: "It was important to save companies that would survive in normal times.

However, the Transport Secretary said current shareholders "must be part of the solution".

UK-based airlines have already announced measures to save money such as temporarily laying-off staff.

Virgin Atlantic had previously suggested the government offer UK carriers £7.5 billion in credit facilities.

The airline's founder Sir Richard Branson this week offered to inject £250 million into the Virgin Group, with most of that amount going to the airline.


Turbulent times


The vast bulk of flights to and from the UK have been grounded amid the coronavirus pandemic.

Some airlines like British Airways are still operating a number of rescue flights to bring stranded Brits home.

Earlier this week, the government said it would not deliver a financial aid package for the aviation industry, but its emergency business measures, including a Bank of England scheme for firms to raise capital and employee wage subsidies, were available for airlines.

But industry group the International Air Transport Association (IATA) warned of an "apocalypse" in the aviation sector as it called on governments around the world for help.

The US Senate on Wednesday passed a $58 billion (£46.6 billion) aid package for its airline industry, which included cash for paying pilot, crew and staff salaries.


To bail out, or not bail out?


You'd be forgiven for being confused about whether the government is going to bailout UK-based airlines, or not.

First ministers indicated that an industry-wide bailout was on the cards.

Virgin Atlantic went public and said £7.5bn was needed.

But then an about turn from the Chancellor.

Rishi Sunak wrote to airlines and airports telling them that an industry-wide emergency rescue package for the aviation industry wasn't on its way after all.

What the government is offering is bespoke financial support on a case-by-case basis, but only once airlines have exhausted all other options.

Ministers want to be sure that wealthy shareholders play their part.

The other reason an industry-wide package didn't happen was because the airlines involved are ultimately rivals and where as some of them were champing at the bit for a government loan, others were against it.

The more cash-rich the airline, the less keen on a bailout.

And, for some, cash is the immediate problem.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Cristiano Ronaldo Embraces Saudi Arabia’s 2034 World Cup Vision with Key Role
Saudi Arabia’s Execution Campaign Escalates as Crown Prince Readies U.S. Visit
Trump Unveils Middle East Reset: Syria Re-engaged, Saudi Ties Amplified
Saudi Arabia to Build Future Cities Designed with Tourists in Mind, Says Tourism Minister
Saudi Arabia Advances Regulated Stablecoin Plans with Global Crypto Exchange Support
Saudi Arabia Maintains Palestinian State Condition Ahead of Possible Israel Ties
Chinese Steel Exports Surge 41% to Saudi Arabia as Mills Pivot Amid Global Trade Curbs
Saudi Arabia’s Biban Forum 2025 Secures Over US$10 Billion in Deals Amid Global SME Drive
Saudi Arabia Sets Pre-Conditions for Israel Normalisation Ahead of Trump Visit
MrBeast’s ‘Beast Land’ Arrives in Riyadh as Part of Riyadh Season 2025
Cristiano Ronaldo Asserts Saudi Pro League Outperforms Ligue 1 Amid Scoring Feats
AI Researchers Claim Human-Level General Intelligence Is Already Here
Saudi Arabia Pauses Major Stretch of ‘The Line’ Megacity Amid Budget Re-Prioritisation
Saudi Arabia Launches Instant e-Visa Platform for Over 60 Countries
Dick Cheney, Former U.S. Vice President, Dies at 84
Saudi Crown Prince to Visit Trump at White House on November Eighteenth
Trump Predicts Saudi Arabia Will Normalise with Israel Ahead of 18 November Riyadh Visit
Entrepreneurial Momentum in Saudi Arabia Shines at Riyadh Forward 2025 Summit
Saudi Arabia to Host First-Ever International WrestleMania in 2027
Saudi Arabia to Host New ATP Masters Tournament from 2028
Trump Doubts Saudi Demand for Palestinian State Before Israel Normalisation
Viral ‘Sky Stadium’ for Saudi Arabia’s 2034 World Cup Debunked as AI-Generated
Deal Between Saudi Arabia and Israel ‘Virtually Impossible’ This Year, Kingdom Insider Says
Saudi Crown Prince to Visit Washington While Israel Recognition Remains Off-Table
Saudi Arabia Leverages Ultra-Low Power Costs to Drive AI Infrastructure Ambitions
Saudi Arabia Poised to Channel Billions into Syria’s Reconstruction as U.S. Sanctions Linger
Smotrich’s ‘Camels’ Remark Tests Saudi–Israel Normalisation Efforts
Saudi Arabia and Qatar Gain Structural Edge in Asian World Cup Qualification
Israeli Energy Minister Delays $35 Billion Gas Export Agreement with Egypt
Fincantieri and Saudi Arabia Agree to Build Advanced Maritime Ecosystem in Kingdom
Saudi Arabia’s HUMAIN Accelerates AI Ambitions Through Major Partnerships and Infrastructure Push
IOC and Saudi Arabia End Ambitious 12-Year Esports Games Partnership
CSL Seqirus Signs Saudi Arabia Pact to Provide Cell-Based Flu Vaccines and Build Local Production
Qualcomm and Saudi Arabia’s HUMAIN Team Up to Deploy 200 MW AI Infrastructure
Saudi Arabia’s Economy Expands Five Percent in Third Quarter Amid Oil Output Surge
China’s Vice President Han Zheng Meets Saudi Crown Prince as Trade Concerns Loom
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
EU Deploys New Biometric Entry/Exit System: What Non-EU Travelers Must Know
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
Israel and Hamas Agree to First Phase of Trump-Brokered Gaza Truce, Hostages to Be Freed
Syria Holds First Elections Since Fall of Assad
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
UK, Canada, and Australia Officially Recognise Palestine in Historic Shift
Dubai Property Boom Shows Strain as Flippers Get Buyer’s Remorse
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
×