Virgin Atlantic is still in talks with the British government regarding coronavirus-related bailout, the company said.
According to the the Sunday Telegraph, Sir Richard Branson, owner of Virgin group is seeking a buyer for the airline.
Virgin Atlantic said talks were “ongoing and constructive”, but added that it is also observing raising cash from the private sector.
Many airlines are struggling as revenues have dropped amid travel bans.
However, sources at the airline told the BBC that the firm had not set an end of May deadline for locating a buyer.
They added: “Because of significant costs to our business caused by unprecedented market conditions which the Covid-19 crisis has brought with it, we are exploring all available options to obtain additional external funding.”
Sir Richard Branson said in an missive to employees on Tuesday that he was asking the govt for an advertising loan, believed to be £500m.
In the blog post, he said: “We will do everything we can to keep the airline going – but we will need government support to achieve that”.
He added that his luxury island resort Necker Island may well be used as collateral to assist secure state aid for Virgin Atlantic.
The Department for Transport said: “The aviation sector is important to the UK economy, and firms can draw upon the unprecedented package of measures announced by the chancellor, including schemes to raise capital, flexibilities with tax bills, and financial support for employees.”
Sir Richard Branson, owner of Virgin group
A spokesperson added that they were willing to contemplate individual firms’ situations, in the end alternatives had been explored, “including raising capital from existing investors”.
In March, Chancellor Rishi Sunak wrote to airlines and airports urging them to search out other sorts of funding, which the govt. would only step in as “a last resort” during the coronavirus crisis.
Sir Richard offered to inject £250m into the group last month, with most of that proceeding to Virgin Atlantic.
Sir Richard’s Virgin Group currently owns 51% of Virgin Atlantic, while the US airline Delta owns the rest of the 49%.
The investment bank Houlihan Lokey has now been hired by the airline to assist it find additional private investment.
The move came after the group’s airline in Australia entered administration.
The country’s second-largest carrier was already battling a long-term A$5bn (£2.55bn; $3.17bn) debt before lockdown measures coming in.
