Virgin Atlantic races to secure £1bn private rescue deal with Richard Branson injecting £200mln

The airline is negotiating agreements to avoid administration without taxpayers' money

virgin aircraft

Virgin Atlantic is reportedly racing to secure backing for a £1bn private rescue deal that would save thousands of jobs.

Chief executive Shai Weiss has been trying to moderate requests by payments group FirstData to hold onto the cash generated by future bookings as collateral, according to Sky News.

READ: Future of Gatwick airport in question as Virgin Atlantic exits, cuts a third of jobs

Richard Branson, the founder of parent organisation Virgin Group, would inject £200mln taken from the £396mln sale of a stake in space tourism business Virgin Galactic.

Another £400mln would come from deferrals of fees agreed with Delta Airlines and Virgin Group, which own 49% and 51% of the airline respectively.

If the agreements don’t go ahead, the long-haul flight carrier would risk administration, as the UK government has been resisting to rescue airlines with taxpayers’ money.

Virgin Atlantic already announced plans to make a third of its staff redundant and leave Gatwick airport, while 80% of staff have been on furlough.

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