Virgin Atlantic have announced that they are taking bookings for 2021 albeit on a reduced route schedule. The majority stakeholder, Richard Branson, has decided to sell £400m of his shares in his company Virgin Galactic in order to prop up the airline after failing to secure a bailout from the British taxpayer.
Posted by
Alsenborn, Germany
867 posts
So basically he doesn't believe they're going to be around either? You don't sell shares in companies you expect to return a profit. When majority shareholders start bailing that's not a good sign.
Notice Warren Buffett has no airline holdings?
Posted by
Southeast US
3847 posts
KGC--
Branson sold Virgin Galactic shares (space travel company) to put money into Virgin Atlantic (airline) after the UK declined his request for government dollars for the airline, putting his own money at risk (which some would say he should have done from the beginning!) instead of putting taxpayer dollars at risk.
Posted by
Alsenborn, Germany
867 posts
Virgin Airlines posted a company loss before tax and exceptional items of £26.1m in 2018, significantly improved from a £49.0m loss in 2017. 2019 wasn't much better. We can guess where 2020 is going. So please tell me why anyone, the Gov't, the taxpayers, or even the owner, should bail out a company that cannot make a profit.
And don't tell me it's all because of Covid19. The record clearly shows that's not true, and it's being used to excuse a too large number of zombie companies that should have been forced to declare bankruptcy.
Posted by
Hampshire, England.
1069 posts
" after the UK declined his request for government dollars for the airline"
Quite ironic really as he was so vocal against the idea of the government putting in money to save Flybe.
Posted by
OP
Portsmouth
5262 posts
Quite ironic really as he was so vocal against the idea of the government putting in money to save Flybe.
Careful, there are one or two people on this forum who don't take kindly to criticism of Richard Branson!