Richard Branson ...

There are so many crucial sectors about to be in the same situation that I can’t see why Virgin is a special case.

These companies should manage themselves better so they aren't in this position shouldn't they?
He could pay the staff....that would be nice.
It's disgusting they want billions from the government- yet self employed get nothing who rescues them?

Airlines were part of the problem no heed to any risk from making sure people took as many cheap holidays as they could. Even when China had cases.

Er it is.

No it's not. Ita hugely complex. Including getting all the people responsible for running the group to agree where to put the funds once they are in. You need that, before the money goes in.

Since they are runs at a deficient and probably in debt, theres every chance the money may be called on by people/companies owed money as a priority.

And what's the priority. Keeping up with payments such as, fees where the planes are, to keep the company afloat or paying staff. As an example.

Lost needs to changing and putting in place, before it could be done.

If you think a billionaire can tip up and pump money into this sort of company, and demand where it goes then you are incorrect.

These companies should manage themselves better so they aren't in this position shouldn't they?

Exactly this. It's been allowed to be advantageous to run businesses in a risky way.

I am not saying g we should bail them out.

I am saying it's not as simple as him pumping money in.

Also we have to remember that being worth a certain amount doesnt mean you have that amount in cash.

I am worth several hundred thousands pounds. Because of some assets I have. I dont have several hundreds of thousands of pounds laying around.

In fact, I realised the other day that I am worth a lit more in monetary terms, dead, than I am alive. Which was an odd feeling.

Delta and KLM own most of Virgin atlantic, not Branson.
I agree he could set up a charitable fund etc. with his wealth but he is not responsible for the airline any more, he’s the figurehead but only really a minor shareholder.

No it's not. Ita hugely complex. Including getting all the people responsible for running the group to agree where to put the funds once they are in. You need that, before the money goes in

You said it isn’t allowed. It is.

It could be injected via an equity investment 🤷🏻‍♀️

At the end of the day, this illustrates that the government needs to pay a minimum income to the population.

It’ll be cheaper than trying to administer means tested benefits etc as we won’t have the time to work it all out.

Branson owns 51% of his airline. Surely he should feel some moral responsibility to help his staff in these unprecedented times?

Just to be clear I'm not a Branson fan and don't buy into the whole fake man of the people image he has promoted over the years..

However for a while now working for a UK airline there has often been the feeling that you are fighting with one arm tied behind your back when you are competing with some of the foreign operators ( see previous comments about Chapter 11 etc).

Still if the UK airlines go because that's what the people want then when the economy recovers and folks feel the need to fly again to the likes of Orlando or New York I'm sure plenty of ( bailed out/subsidised) foreign operators, employing a workforce largely not resident or taxed in the UK will be more than happy to pick up the slots at UK airports left vacant if Virgin or BA go.

I'm not a fan of bailouts but I do think for example a temporary suspension of UK Air Port Passenger Duty might not bad thing, and I'd be wary of thinking losing UK airline jobs is the same as losing jobs on the UK high street- High Street jobs, will in some way shape or form come back to the high street - there is no guarantee the more mobile jobs will.

Hasn't Mr Branson's private health group raped and pillage the NHS more than any other private health care group?

But no, let's prop up airlines. Seems sensible right now.

This is capitalism, fuck your workers and stash the cash when times are good, run to the Government for a bail out when times are bad.

The nation voted for this.

Last time we bailed out businesses, we got austerity in exchange.

Fool me once, etc ....

Equity injection would increase the amount owed to Branson and would require the creation of loads more shares, devaluating the shares holdings of existing shareholders. It would need to be passed by the board and voted on by the shareholders. It’s not easy at all.

Someone like Branson could offer to help the employees directly but there would be tax implications. Unfortunately it is only the government who can step in. I say that as a total lefty but one with a bit of training in company finance.

I think it might be an idea to wait a bit before spunking loads of money on begging business that may turn out to be a bad investment.

I can't see the airline industry getting back to anywhere near 2019 levels of activity for a whole host of reasons. Rather than just a plain bailout bung, the money could go towards retraining and encouraging business ventures elsewhere.

That said, the UK kind of perfected the art of propping up doomed businesses in the 20th century. It might be a hard habit to break.

It could be injected via an equity investment

It's that easy?

It's really not. Theres tons if rules and regulations regarding this.

Then its guaranteeing where the money goes? To debts? To keep it afloat?

I said he cant just tip up and throw money at it.

I am guessing if he could he would. Because BA would then potentially go under without a similar investor. Then they have lots of business when this all dies down.

Theres tons if rules and regulations regarding this.

Which are the gift of the government ... rules can be changed, and regulations relaxed. All laws are created with loopholes for emergencies, so if the COVID situation becomes an emergency, there's scope for flexibility.

The bigger question is what a post COVID airline industry is going to look like. Because if the effects of COVID are even half as bad as expected, it's unlikely there's going to be the appetite to return to people flitting at will across the globe. Which will be a global phenomenon.

There's quite an impressive array of begging bowls being polished ... airlines, railways, bookmakers ... soon to be joined by large manufacturers, small manufacturers, self employed ... we can't all sell loo roll.

Branson owns 51% of his airline. Surely he should feel some moral responsibility to help his staff in these unprecedented times?

No he doesnt. Virgin group owns 51% of the airline.

That's completely different to him owning it. His current relationship with Virgin group is less clear.

What us the money for? To artificially pay staff etc?

There will be millions in same boat.

Which are the gift of the government ... rules can be changed, and regulations relaxed. All laws are created with loopholes for emergencies, so if the COVID situation becomes an emergency, there's scope for flexibility.

Which I also said. But currently it's not as easy to sort immediately.

As I understand it he wanted help for the whole industry. How many airlines will go under while the above is being sorted.

How many airlines will go under while the above is being sorted.

How many airlines will we need once it's over.

Planes are being mothballed. It ain't cheap to store them, and maintain them (which they still need in storage). That's before we consider the fact that pilots will start losing their qualifications if they don't fly the required hours. Now you can take a flight on a plane where the government has waived maintenance and pilot regulations to "get things moving". Personally I'd rather be a long way away from it's flight path. We've seen with the 737Max what a lax regulatory regime leads to. Lots of dead bodies.

The problem is 'feral' capitalism which has shifted the whole economy to a model that strips out as much profit as possible, invests minimally and does not leave enough rainy day money in the kitty to cover 'unnecessary' expenses like staff wages and pensions even in short-term crises.

I think Prof David Harvey, a political-economist, sums it up nicely here:

'But the problem is that we live in a society where capitalism itself has become rampantly feral. Feral politicians cheat on their expenses, feral bankers plunder the public purse for all its worth, CEOs, hedge fund operators and private equity geniuses loot the world of wealth, telephone and credit card companies load mysterious charges on everyone’s bills, shopkeepers price gouge, and, at the drop of a hat swindlers and scam artists get to practice three-card monte right up into the highest echelons of the corporate and political world.

A political economy of mass dispossession, of predatory practices to the point of daylight robbery, particularly of the poor and the vulnerable, the unsophisticated and the legally unprotected, has become the order of the day. Does anyone believe it is possible to find an honest capitalist, an honest banker, an honest politician, an honest shopkeeper or an honest police commisioner any more? Yes, they do exist. But only as a minority that everyone else regards as stupid. Get smart. Get Easy Profits. Defraud and steal! The odds of getting caught are low. And in any case there are plenty of ways to shield personal wealth from the costs of corporate malfeasance.'

Air travel powers the economy. Something will need to be done to shore up the big two.