LONDON: British tycoon Richard Branson has warned that his part-owned airline Virgin Atlantic will collapse unless it receives financial aid from the UK government to weather the coronavirus crisis.
"We will do everything we can to keep the airline going but we will need government support to achieve that in the face of the severe uncertainty surrounding travel today and not knowing how long the planes will be grounded for," Branson said in a letter to employees seen by media.
Airlines around the world are on the financial ropes as government lockdown orders and border closures have forced them to ground most of their planes.
"This would be in the form of a commercial loan -- it wouldn't be free money and the airline would pay it back," he added after the billionaire faced criticism following the airline demanding that staff take unpaid leave during the COVID-19 outbreak.
"The reality of this unprecedented crisis is that many airlines around the world need government support and many have already received it," Branson added.
"Without it there won't be any competition left and hundreds of thousands more jobs will be lost, along with critical connectivity and huge economic value," the letter went on.
Virgin is reportedly seeking £500 million ($612 million, 564 million euros) in state help.
British no-frills airline EasyJet recently secured a £600-million loan from the British government, which is dealing with airlines on a case-by-case basis rather than heeding to Virgin's demand for a multi-billion-pound state-funded pot for the entire UK airline sector.
In his letter to staff, Branson referred to "lots of comments" about his wealth and a duty to prop up Virgin Atlantic and offer financial help to staff from his own pocket.
But he insisted that figures being published regarding his net worth were based on the value of Virgin businesses before the coronavirus pandemic, rather than "cash in a bank account ready to withdraw".
He added: "Today, the cash we have in the Virgin Group and my personal wealth is being invested across many companies around the world to protect as many jobs as possible, with a big part of that going to Virgin Atlantic."
Elsewhere on Monday, Virgin Australia -- also part-owned by Branson's Virgin Group -- moved toward voluntary administration, a source and local media said, making the carrier the largest yet to fall victim to the coronavirus pandemic.
The source said staff learned of the decision late Monday, leaving about 10,000 pilots, flight attendants and ground crew in limbo.
Administrators are now expected to be appointed to try to find a buyer for the company and manage creditors.
Virgin Atlantic may fold without state help: Branson
https://arab.news/996jn
Virgin Atlantic may fold without state help: Branson
- "We will do everything we can to keep the airline going but we will need government support," Branson said
Reforms target sustained growth in Saudi real estate sector, says Al-Hogail
RIYADH: The Real Estate Future Forum opened its doors for its first day at the Four Seasons Riyadh, with prominent global and local figures coming together to engage with one of the Kingdom’s most prospering sectors.
With new regulations, laws, and investments underway, 2026 is expected to be a year of momentous progress for the real estate sector in the Kingdom.
The forum opened with a video highlighting the sector’s progress in the Kingdom, during which an emphasis was placed on the forum’s ability to create global reach, representation, as well as agreements worth a cumulative $50 billion
With the Kingdom now opening up real estate ownership to foreigners, this year’s Real Estate Future Forum is placing a great deal of importance on this new milestone and its desired outcomes and impact on the market.
Aside from this year’s forum’s unique discussions surrounding those developments, it will also be the first of its kind to launch the Real Estate Excellence Award and announce its finalist during the three-day summit.
Minister of Municipalities and Housing and Chairman of the Real Estate General Authority Majed Al-Hogail took to stage to address the diverse audience on the real estate market’s achievements thus far and its milestones to come.
Of those important milestones, he underscored “real estate balance” as a key pillar of the sector’s decisions to implement regulatory tools “with the aim of constant growth which can maintain the vitality of this sector.” He pointed to examples of those regulatory measures, such as the White Land Tax.
On 2025’s progress, the minister highlighted the jump in Saudi family home ownership, which went from 47 percent in 2016 to 66 percent in 2025, keeping the Kingdom’s Vision 2030 goal of 70 percent by the end of the decade on track.
He said the opening of the real estate market to foreigners is an indicator of the sector’s maturity under the leadership of Crown Prince Mohammed bin Salman. He said his ministry plans to build over 300,000 housing units in Riyadh over the next three years.
Speaking to Arab News, Al-Hogail elaborated on these achievements, stating: “Today, demand, especially local demand, has grown significantly. The mortgage market has reached record levels, exceeding SR900 billion ($240 billion) in mortgage financing, we are now seeing SRC (Saudi Real Estate Refinance Co.) injecting both local and foreign liquidity on a large scale, reaching more than SR54 billion”
Al-Hogail described Makkah and Madinah as unique and special points in the Kingdom’s real estate market as he spoke of the sector’s attractiveness.
“Today, the Kingdom of Saudi Arabia has become, in international investment indices, one that takes a good share of the Middle East, and based on this, many real estate investment portfolios have begun to come in,” he said.
Al-Ahsa Gov. Prince Saud bin Talal bin Badr Al-Saud told Arab News the Kingdom’s ability to balance both heritage sites with real estate is one of its strengths.
He said: “Actually the real estate market supports the whole infrastructure … the whole ecosystem goes back together in the foundation of the real estate; if we have the right infrastructure we can leverage more on tourism plus we can leverage more on the quality of life … we’re looking at 2030, this is the vision … to have the right infrastructure the time for more investors to come in real estate, entertainment, plus tourism and culture.”
