Coronavirus: Virgin Atlantic attempts to secure GBP1m rescue deal

Virgin Atlantic Airways is in the process of attempting to secure the support of American payments group First Data in order to land a GBP1m ($1.39m) rescue deal, according to reports. First Data has made “stringent” demands in return for backing Sir Richard Branson’s airline — namely, that it gets to hold on to all future bookings revenue, to “protect itself” should Virgin collapse. This deal could potentially save thousands of British jobs in the airline industry. Virgin is expected to announce the rescue deal outline next week, Sky said. Hedge fund David Kemper Capital Management has already “broadly agreed” to negotiations regarding a significant cash injection. The airline is seeking over GBP500,000 in debt and equity funding due to economic damage caused by the COVID-19 pandemic. First Data’s demands are similar to those made by merchant acquirers shortly before Exeter-based airline Flybe’s collapse in March. Lloyds Bank’s Cardnet has “broadly agreed” to terms put forth by Virgin Atlantic. The endorsement of Cardnet and First Data are "the final piece of the jigsaw" in securing a package that would allow Virgin Atlantic to continue trading and save thousands of UK jobs, they added. However, without this backing, Virgin Atlantic risks collapsing into administration.<br/>