Virgin Atlantic set to ask for government bailout due to coronavirus

VIRGIN Atlantic is set to ask the government for a bailout due to the coronavirus, according to reports. The airline would be among the first to ask for help, according to The Financial Times. The struggling airline has had to ground 75 per cent of its fleet, with 85 per cent of it parked by […]

VIRGIN Atlantic is set to ask the government for a bailout due to the coronavirus, according to reports.

The airline would be among the first to ask for help, according to The Financial Times.

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The struggling airline has had to ground 75 per cent of its fleet, with 85 per cent of it parked by April.

While thousands of staff have been asked to take eight weeks unpaid leave.

The government has not ruled out helping airlines – but has said that it would only be as a “last resort”.

Mr Shapps told MPs that nothing had been ruled out in the response to the coronavirus outbreak, according to a summary of a Transport Select Committee hearing published on Friday.

During the session, which was held in private over Skype, Labour MP Ruth Cadbury asked the Cabinet minister whether the Government would consider taking a stake in UK airlines that faced collapse.

The description of Mr Shapps’s response states: “The Secretary of State said that everything was on the table.

“The department had to try to save the aviation sector and to protect the consumer and the taxpayer.
“It was important to save companies that should survive in normal times.”

Mr Shapps went on to say that the Government’s offer to pay 80 per cent of the salary for staff kept on by their employer would be important for airlines and airports.

He added it was vital that shareholders were “part of the solution” for saving companies.

Virgin Atlantic had previously urged the Government to offer carriers emergency credit facilities worth up to £7.5billion.

Airlines have suspended the majority of their flights due to demand plummeting and countries around the world introducing travel restrictions in a bid to slow the spread of coronavirus.

Gatwick Airport announced today that it will significantly scale back its operations next week.

From April 1, the West Sussex airport will close one of its two terminals, and its runway will only be open for scheduled flights between 2pm and 10pm.

The measures will be in place for a minimum of one month.