Virgin Atlantic is racing to find new investors within the next month in a process that could reduce the 51% stake held by billionaire founder Richard Branson. The airline last week hired investment bank Houlihan Lokey to look at private funding options after the UK government rejected its initial submission for GBP500m of state aid, unimpressed by its failure to first seek investment elsewhere. Houlihan has now approached more than 100 potential investors, with “all options on the table”, according to one person familiar with the matter. This could include loans, equity or more complex financial structures, and could cut Sir Richard’s majority stake. But Virgin Group said it was not trying to sell the airline outright: “Richard and the Virgin Group are committed to the airline and are not looking to sell Virgin Atlantic. They recognise that further investment will be necessary to make up for the total loss of revenue due to Covid-19 and are working with Houlihan Lokey to approach private investors about the investment opportunity.” Private equity groups, sovereign wealth funds and hedge funds were among those Houlihan had approached, according to another person close to the process. About 50 have asked for more information and will be sent more detail on Virgin Atlantic’s business plan. These investors will now have another week to express further interest.<br/>
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Virgin Australia owed more than $6.8b to more than 12,000 creditors, including employees, banks, aircraft financiers and landlords, when its board decided to appoint administrators last Monday. Documents filed with the federal court by the administrators, partners at accounting firm Deloitte, show they are also uncertain as to whether to continue leasing some of the grounded airline’s 144-strong fleet of planes. On Friday morning, federal court judge John Middleton gave the administrators permission to hold a meeting of creditors next Thursday by videolink. He also allowed the administrators an extra month to decide how to deal with its 94 different aircraft leases before they become personally liable for almost $2b owed under the contracts. Administrator Vaughan Strawbridge has previously said Deloitte hopes to quickly sell Virgin Australia in one piece. An expression of interest campaign lasting three weeks started on Tuesday. Virgin CE Paul Scurrah, who remains in his job during the administration, said the board’s decision to place the company in administration came after the federal government knocked back a final plea for $200m in assistance – far less than a loan of $1.4b the airline initially requested.<br/>
El Al Israel Airlines Sunday extended its suspension of scheduled passenger flights by a week until May 9 but said it will operate a number of special flights to and from the US and Europe. Israel's flag carrier a month ago halted flights due to a drop in demand in the wake of the coronavirus outbreak, as well as concerns for the health of passengers and crew and the need to reduce expenses until the crisis ends. Flights had been suspended until May 2, although it operates special rescue flights to various destinations and continues cargo flights. About 5,500 of the carrier's 6,000 workers are on unpaid leave until May 31. El Al said last week it is in advanced talks with an Israeli bank to receive a loan that will be partly backed by government guarantees. The carrier has said it needs a government loan of $200m to $300m to recover from the impact of the COVID-19 pandemic.<br/>
Emirates is using cash reserves to refund customers as airlines around the world look for ways to handle rebates in the aftermath of grounded flights. With about half-a-million requests pending, the Dubai-based carrier said it’s ramping up the capability to handle 150,000 refunds per month from 35,000 before the coronavirus outbreak. Emirates, which received assurances for government support last month,plans to clear the backlog by early August. “We are dipping into our cash reserves by being proactive in processing refunds, but it is our duty and responsibility,” President Tim Clark said. Carriers have resisted refunding passengers for canceled flights as they sought to preserve dwindling cash reserve. Airlines, including Emirates, have been steering customers to vouchers, prompting a flurry of complaints. <br/>
Wizz Air said Saturday it would restart some flights from London's Luton Airport on May 1, becoming one of the first European carriers to begin restoring services that have been halted during the coronavirus pandemic. European airlines have grounded the majority of their fleets over the last six weeks as demand plunged and travel restrictions to combat the virus took hold. Wizz said, however, it would be putting some of its planes back in the air "to provide an essential service to passengers who need to travel", adding that the resumption of its flights was subject to no further government restrictions being announced. Flights to several destinations in Romania, plus Budapest in Hungary, Lisbon in Portugal and Spain's Tenerife would be among those to resume, said London-listed Wizz, which was founded in Hungary and has a big presence in central and eastern Europe. Wizz said cabin crew would wear masks and gloves throughout flights and distribute sanitising wipes to passengers, while aircraft would be disinfected overnight. "The protective measures that we are implementing will ensure the most sanitary conditions possible," Wizz Air UK's MD Owain Jones said.<br/>