FT: How Richard Branson changed his mind over government aid

THE FINANCIAL TIMES reports:

At the height of the financial crisis in 2009, billionaire Richard Branson balked at the idea of government intervention to stop companies going bust, proclaiming that weak airlines should be allowed to go to the wall.  Just over 10 years later and the Virgin Group founder has had a change of heart as he fights to protect his business empire from the fallout of the coronavirus crisis. 

On Tuesday, he hit out at the lack of government support after Australia’s second-biggest carrier, Virgin Australia, collapsed into administration after failing to secure a bailout — making it the airline industry’s first big casualty from the worst crisis in the sector’s history. 

Hours before Virgin Australia entered voluntary administration, the British billionaire stepped up pleas for state aid for his airlines — Virgin Australia and UK-based Virgin Atlantic — pledging to mortgage his home and luxury holiday resort in the British Virgin Islands as government intervention on both sides of the world looked increasingly unlikely.  It comes as governments are taking contrasting action on how much financial support to provide carriers with their fleets grounded and revenues evaporating in the face of the air travel shutdown. 

“The whole issue of competition and support is now beginning to gather momentum and issues such as overseas ownership and existing shareholder investment are obvious areas for discussion,” said John Grant of OAG, the data consultancy.

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