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Video: Branson attacks government, pays tribute to Virgin staff

written by Adam Thorn | April 21, 2020

Ready for takeoff – Virgin Blue launched services with two 162-seat ex Virgin Express Boeing 737-400s and about 280 staff on August 31 2000. Those first two aircraft and many of the original workforce are pictured here on the tarmac at Brisbane Airport at the airline’s launch on July 9 that year. (Jim Thorn)
Ready for takeoff – Virgin Blue launched services with two 162-seat ex Virgin Express Boeing 737-400s and about 280 staff on August 31 2000. Those first two aircraft and many of the original workforce are pictured here on the tarmac at Brisbane Airport at the airline’s launch on July 9 that year. (Jim Thorn)

Sir Richard Branson has released a video paying tribute to Virgin Australia’s staff following the airline’s collapse into administration, but also made a pointed attack on the government.

The Virgin Group founder said, “In most countries, federal governments have stepped in, in this unprecedented crisis for aviation, to help their airlines. Sadly, that has not happened in Australia.”

He also took a swipe at Qantas – “our competitor’ – adding that he would do all he could to get the business up and running again.

The airline confirmed to the ASX on Tuesday morning that it had collapsed into administration after struggling to service billions of dollars of debt and having its appeals for financial aid denied by national and state governments.

In the video, posted on Instagram, Sir Richard said, “I’m so proud of all of you at Virgin Australia and everything we’ve achieved together. Twenty years ago, we wanted to bring much-needed competition into Australia’s skies, lower airfares, give consumers choice, to create thousands of jobs and put a smile on people’s face.

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“Inspired that vision, we created Virgin Blue, which turned into Virgin Australia, and together we created an airline that embodied the Virgin brand – an incredible team focused on innovation and customer experience to make people’s lives better.

“Well, I know only too well how devastating the news will be to you all. In most countries, federal governments have stepped in, in this unprecedented crisis for aviation, to help their airlines. Sadly, that has not happened in Australia. This is not the end for Virgin Australia and its unique culture.

“Never one to give up, I want to assure all of you, and our competitor, that we are determined to see Virgin Australia back up and running soon.

 

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A post shared by Richard Branson (@richardbranson) on

“We will work with Virgin Australia’s administrators and management team, investors and government to make this happen and create a stronger business ready to provide even more value to customers, competition to the market, stimulus to the economy and as many jobs as possible to our wonderful people.

“Virgin Australia has captured the hearts of all Australians, that is down to all of you, past and present, who made it the best airline to fly in Australia. This is not the end for Virgin Australia, but I believe and hope a new beginning. We’ll work day and night to turn this into a reality.”

The company’s current shareholders include Singapore Airlines, China’s HNA Group and Nanshan Group, Etihad and Richard Branson’s Virgin Group, which together hold 90 per cent of the company.

Early on Tuesday morning, the business’ administrator, Deloitte, confirmed it has been in discussions with a number of investors.

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Comments (18)

  • Keith

    says:

    He also took a swipe at Qantas – “our competitor’ – adding that he would do all he could to get the business up and running again. Well why did he not put his money where his mouth is.I don’t see the Government bailing out the many businesses that are affected by Corvid19So why should the Government bail out Virgin.
    Remember Qantas had problems a few years ago and asked for Government money which was refused.They traded there way out there problems.

  • Rod Pickin

    says:

    I really think that tricky dicky has been caught short here; does he not remember the demise of Virgin America and the take over by Air Alaska. Had he more equity in that brand the name may well have remained today. The same rings true of his 10.2% holding in VOZ; its great to be on video, big profile praising the underlings and blaming others but with such a small financial interest remaining in the company and his obvious absence at the time of need makes me think in negative terms about his behaviour and his belief in the airline. I may change my mind after he checks out a mortgage on his little homestead in the Virgin Isles.

  • Geoff

    says:

    I think that foreign ownership of the Australian Virgin airline is at about 90%. Hard to see the Australian Government kicking in when there are foreign owners like Singapore Airlines, Etihad Airlines and a Chinese investment company.

    The company was already in significant debt before the Wuhan virus appeared on the scene.

    I would like to see the airline continue.

  • Rod

    says:

    I agree with comments made by Keith and would also pose the question ‘What other airline has been bailed out by their government’. Mr Branson failed to nominate any airline and I would imagine many are finding it difficult at this time and watching their bottom line.

    • Dave

      says:

      Mr Branson also tried to a £500 million loan from the British government for his other airline Virgin Atlantic (of which he owns a small share %) but the government refused him.

  • Snake

    says:

    Go to your wealthy shareholders and make things right, the company was obviously badly run previous to the virus, and you and the shareholders didn’t keep your eye on the ball.

  • Craig

    says:

    Hey Keith Qantas had a good number cruncher and wrote off 2.9 billion for tax purpose after the government refused to help that’s why it’s in a better place now and doesn’t pay business tax because of it

    • Doug Evans

      says:

      Let’s hope SQ is a major. part of the rescue package, preferably 100%.

  • GB

    says:

    Virgin’s huge debt occurred way before this vivid crisis. Mismanagement? Why should Our tax dollars go to a company 90% owned by foreign interests including two airlines competing with Qantas? I don’t see Singapore or Etihad airlines backing Virgin. Maybe Virgin should have stuck to it’s no-frills origin like Jetstar.

  • Craigy

    says:

    Branson currently has his hand out for a loan from the British Government who have said loans are only a last option when all others have been exhausted. As usual though, the showman goes on.

    For all those directing your anger at the Government for not bailing out Virgin, after the lockdown is over and you want to travel overseas, just remember which airlines refused to inject funding into Virgin, such as Singapore Airlines and Etihad. Despite not wanting to inject funding into Virgin, reports in the Australian suggest Etihad is partner in a consortium to buy Virgin.

  • Paul

    says:

    Well Mr Branson you forget to mention the reasons why VA has gone into Administration. It was thru debt built up in the prior CEO management. Unable to service this mountain of debt. The govt has waived $700m in fees, provided $165m assistance to restart flights, chartered flights to bring people home so all your bluster is ill founded. It is not the governments job to pay off your company debts, that falls with the board of the airline as the board approved the borrowing.

  • Red Cee

    says:

    Etihad is part of a consortium wanting to buy Virgin. They obviously don’t like something about the current Virgin, as they don’t want to put in any money. Think about it.

  • Jack

    says:

    I think the title is a bit misleading. Branson didn’t ‘attack’ the Government, he just stated that Government support didn’t happen for Virgin in Australia… He wasn’t digging at Qantas either, he was just addressing their competitor AKA, Qantas. I think his message was very polite and was needed/well produced.

    • Adam Thorn

      says:

      Hi Jack,

      I think to even bring up the government, and Qantas, during something that was intended as a thank you to staff was very pointed. Whatever your views on the man, Branson is a shrewd media operator, and I think every word of that statement would have been meticulously well prepared. Always interested to hear people’s views though, and this is a topic I’ll be coming back to again soon.

      Thanks,

      Adam

  • Neil

    says:

    Richard Branson if nothing else is economic with the truth. Anything that is Virgin branded will pay up to 10% of gross revenue to use the Virgin name. Looking back over VA Annual Reports he has taken over $200m in royalty payments even when VA was loosing money. What is really worrying is the “management” thought it was good value.
    The same corporate thug is asking the UK Government for GBP981m to rescue Virgin Atlantic which is 50% owned by Delta Airlines of the USA at a time he is suing the British National Health Service for over GBP7m because they didn’t give health contracts to his related companies.
    He has lost the plot and if son of VA is born it doesn’t need Branson in any way and sure doesn’t need to pay to use what now is a “tacky” name.

  • Marum

    says:

    QANTAS is one of the few national carriers which does not receive government assistance or subsidies. If my taxpayer dollar is going to go anywhere, I would rather it go to QANTAS.

    A question. If the Government wants a two airline regime, why don’t they buy Virgin?

    Regards….Marum.

  • douglas mcbride

    says:

    funny thing is what i saw on facebook is Branson asked the british government for a bailout money & leave all staff retrenched without pay…also saw that VA pay no tax so no wonder our government won’t bail them out…

  • John Phillips

    says:

    Tricky Dickie at it again. Refuses to put up his own money, though.

    Enough said.

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