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
Saudi carrier flyadeal expects 20–25% capacity growth on fleet expansion
RIYADH: Saudi low-cost carrier flyadeal expects its capacity to grow by 20 to 25 percent next year as it expands its fleet, aiming for an “operational leap” with a total of 98 aircraft, CEO Steven Greenway told Al-Eqtisadiah.
The company’s historic expansion is set to begin in 2027, with a new aircraft delivery scheduled each month until 2029 to reach the planned fleet size.
The airline carried 11 million passengers this year, with projections of 12 to 13 million passengers next year as the expansion takes effect.
It reported a 35 percent year-on-year increase in capacity this December, according to Greenway. The growth plan includes the addition of new aircraft types, notably the wide-body A330neo, which can carry 420 passengers.
International route restructuring
The wide-body aircraft, joining flyadeal’s fleet for the first time, will be capable of connecting Saudi airports on long-haul routes spanning from Western Europe to Southeast Asia.
This will allow the airline to significantly expand its international network and develop a transcontinental operational structure to meet rising demand for travel to and from the Kingdom.
In line with this, flyadeal plans to restructure its operations over the next two years to achieve a balanced mix of domestic and international flights.
This mix represents a significant shift from the current operational structure, which relies on an 80 percent domestic and 20 percent international flight model. Greenway said the new structure shows a clear vision to support Saudi Arabia’s growing tourism openness and strengthen the Kingdom’s global connectivity.
44th aircraft arrives by year-end
The airline closed last year with a fleet of 36 aircraft, adding eight more this year. By the end of 2025, flyadeal will have 44 aircraft, with one final delivery expected next week, Greenway said.
The short-term plan includes adding four new aircraft next year, bringing the fleet to 48, comprising traditional A320s, fuel-efficient A320neos, and A321s with 240 seats.
Saudi aviation market
The Kingdom’s aviation sector recorded notable growth last year, with passenger numbers exceeding 128 million, a 15 percent year-on-year increase.
The General Authority of Civil Aviation reported more than 905,000 flights, up 11 percent from 2024, while air connectivity grew 16 percent to over 170 destinations worldwide.
Air cargo also posted exceptional growth, rising 34 percent to 1.2 million tonnes. The four main airports in Riyadh, Jeddah, Dammam, and Madinah accounted for 82 percent of total air traffic last year.
