Economic

The airline of the British billionaire collapsed because of the Covid-19 epidemic

Virgin Australia by billionaire Richard Branson became the first airline in Asia to collapse due to Covid-19. More than 80% of Virgin employees have been laid off.

According to the South China Morning Post , Brisbane-based Virgin Australia said the Deloitte service network would take over the airline. Behind Deloitte will seek new investors to funds for Virgin Australia or find buyers low-cost carrier to this .

“We have started to look for investors and some parties have expressed interest,” Deloitte said. Before Virgin Australia, FlyBe – the largest domestic airline in the UK – also collapsed in the Covid-19 epidemic.

To date, Virgin Australia has given 80% of its 10,000 employees to leave. The airline will continue to operate flights carrying medical personnel, cargo and returning Australians from abroad.

By the end of 2019, Virgin Australia owes up to US $ 3.2 billion . Recently, the company called on the Australian government to lend $ 885 million to survive the crisis. The company’s shares were halted earlier this month.

Entrepreneur Richard Branson founded Virgin Australia in 2000.

According to CNN , on April 20, Virgin Group founder Richard Branson called on the Australian and British governments to provide financial support to save Virgin Australia and Virgin Atlantic. “If Virgin Australia disappears, Qantas will monopolize the skies over Australia,” he stressed.

To date, Branson businessman has injected $ 250 million into Virgin Group companies to cope with the pandemic. He announced that he would use the Caribbean island of Necker as collateral to borrow money from the government. Virgin Atlantic wants to borrow from the British government.

According to the International Air Transport Association (IATA), international airlines will lose about 314 billion USD in tickets in 2020 due to the Covid-19 epidemic.

US carriers will receive tens of billions of dollars in stimulus package of US $ 2,000 billion Congress and the US government passed. However, governments in Europe have never committed to rescue regional airlines.

Read also

  • US President Donald Trump Proposed Reducing Tax to Combat Covid-19

    The administration of US President Donald Trump said it had proposed to reduce the wage fund tax to 0% and financially support workers who cannot work due to infection to fight the epidemic.

    According to CNBC , on March 10, Mr. Trump met with Republican congressmen on March 10 to discuss solutions to protect the US economy from the threat of the Covid-19 epidemic.

    The White House boss wants to cut the payroll tax of businesses to 0% until after the US presidential election in November. In addition, sick leave workers will be paid.

    The White House is also committed to reducing taxes on the aviation and hotel industries, making it easier for small and medium-sized businesses to access capital.

    US President 
    Donald Trump spoke at the meeting on March 10. 

    Keep calm. Everything will be fine. The government is doing everything very effectively, “President Trump said on the sidelines of the meeting. However, a Wall Street Journal source revealed that US congressmen were not too excited about the plan to cut payroll tax.

    Democratic MPs prioritize measures to support devastating industries in Covid-19 and sick workers. It is likely that Democrats will propose an economic stimulus package.

    “It seems the Trump administration sees tax reduction as a way to solve all problems,” criticized Democratic Senator Chuck Schumer.

    As of March 10, the US confirmed 729 cases of corona virus infection, of which 27 died. New Rochelle, located in Westchester County on the outskirts of New York City, recorded 108 cases and became the country’s largest outbreak.

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