Virgin Atlantic seeks urgent rescue package worth up to £900m

Virgin Atlantic is attempting to secure a privately funded rescue deal worth up to GBP900m by the end of this week as it fights to survive after the slump in international travel during the coronavirus pandemic. The airline is in talks with hedge funds about borrowing about GBP250m and is lining up more than GBP200m from shareholders including founder Sir Richard Branson and Delta, which owns 49% of the company. Virgin Atlantic is also talking to plane manufacturers, credit card companies and leaseholders about the deferral or cancellation of payments worth hundreds of millions of pounds. One source said there were as many as 60 separate discussions about potential funding lifelines. Virgin has set an “informal deadline” of early July to finalise a deal, but is understood to be able to stretch talks beyond that deadline if necessary. Virgin said it could take three years for flight numbers to return to 2019 levels. The company has been told by the government it must explore all private options for finance before any public bailout will be considered. Talks with the government also continue about a potential injection of as much as GBP100m, it is understood.<br/>