Virgin Atlantic bailout backed by Rolls-Royce, Airbus and Heathrow

Virgin Atlantic’s quest for a state bailout has been backed by some of aviation’s biggest companies, with the aerospace giants Airbus and Rolls-Royce as well as Heathrow all lobbying the government on the airline’s behalf. The trio have sent letters to the transport secretary, Grant Shapps, this week urging state assistance for Sir Richard Branson’s airline, which is seeking hundreds of millions of pounds in loans and credit guarantees. Virgin has ordered a fleet of Airbus 330 aircraft, with Rolls-Royce engines, whose wings are made at the Airbus Broughton plant in north Wales. The airline also had plans before the coronavirus to expand at London Heathrow. In one of the letters, John Harrison, the general counsel and UK chairman of Airbus, said that Virgin’s “collapse could have an extremely negative impact on the A330 programme”. He added: “As you will be aware, all wings for these aircraft are designed and manufactured in the UK, and orders from airlines like Virgin are vital for the continuation of our business.” Rolls-Royce has also stressed the “significant importance” of Virgin’s custom to the company and its UK supply chain. A Heathrow spokesperson confirmed that the airport had written on Virgin’s behalf, and said: “The government must take urgent steps now to safeguard the future of the sector or it will risk undermining the recovery of Britain’s economy once we beat the virus.”<br/>