Virgin on the Ridiculous

Sir Richard Branson’s request for a £500m loan from the UK Government to help save his Virgin Airline Company doesn’t seem unreasonable. He’s offered his British Virgin Isle , Island as collateral for the loan and if it is approved he’ll be up to his Necker in debt.

Some critics have made the point that he should be barred from borrowing from a UK Government into which he has paid no income tax for 14 years and remains a tax exile. That said I would counter that the Virgin Airline employ over 8000 people and these have all contributed to the Exchequer as job creators or entrepreneurs do. Branson is no exception and like him or hate him the guy helped build over 60 companies with brand Virgin employing over 70,000 people at its height.

All said and done it is only a loan not a gift though I doubt whether the loan will ever get repaid. Some might argue that his airline has done more damage to the climate and he needs to compensate planet earth for his eco rape and pillage. I would counter that as well for in fighting British Airways he maintained reasonably priced cross Atlantic travel and put spark into Air travel. The grey pyjamas were not bad either.

The planes themselves are mostly leased from Boeing and they’ll just about get repaid they rent landing spots at Airports and own nothing other than the brand name which failed with Wedding dresses and Street Cleaning. Most of the brides were not Virgins clearly. Be that as it may I once met Branson and though likeable you would need to lock up your wife as he loved all Romance including fast boats and Space having fallen off and out of them in his attempts to go one better.

As for Necker he paid only circa $3m for that and though he lives there today and says he employs 750 people I don’t think it’s collateral for a $650m loan. His 49% partner is Delta and I thought that they were being baled out presently by Uncle Sam.

Long story short I would advise the Confetti Chancellor to give him the loan without any collateral other than his 51% shareholding in the Group unless he’s already hocked that elsewhere and if so I’d let them bale him out.

Just saying.