Branson to mortgage Necker Island for airline bailout
![Necker Island, a 30-hectare (74-acre) island in the [British] Virgin Islands just north of Virgin Gorda, is owned by Sir Richard C. N. Branson. Photo: VINO/File](https://www.virginislandsnewsonline.com/cache/images/800x_9_964568_10151682728946057_683411076_o.jpg)
According to The Guardian, Mr Branson, who is the United Kingdom’s seventh richest person, with an estimated £4.7bn fortune, and in the Virgin Islands for the last 14 years, promised in a public blogpost on Monday, April 20, 2020, that he would “raise as much money against the island as possible to save as many jobs as possible”.
£500m loan sought
Branson, 69, made the pledge as he tried to convince the United Kingdom (UK) government to give his airline a £500m loan to help it through the “devastating impact this pandemic continues to have”.
“The reality of this unprecedented crisis is that many airlines around the world need government support and many have already received it,” he said. “We will do everything we can to keep the airline going – but we will need government support to achieve that in the face of the severe uncertainty surrounding travel today and not knowing how long the planes will be grounded for.”
Branson’s fresh plea for taxpayer support, according to The Guardian, comes after the UK government rejected Virgin Atlantic’s initial proposal for a £500m aid package. The Treasury rejected the proposal, and told Virgin to explore other ways to raise cash before seeking state assistance.
Not a handout
Branson said he was asking for a taxpayer loan, not a handout: “This would be in the form of a commercial loan – it wouldn’t be free money and the airline would pay it back.”
He dismissed the idea that he should consider tapping into his vast personal wealth rather seeking government support.
“I’ve seen lots of comments about my net worth – but that is calculated on the value of Virgin businesses around the world before this crisis, not sitting as cash in a bank account ready to withdraw,” he said.
Necker Island not offered as collateral on loans
The billionaire later confirmed that he is not offering Necker Island as collateral on loans from the UK taxpayer, but only as security against commercial loans.
“He and the team at Virgin Group will use the resources available to them which could even include raising money against Necker,” his spokesperson said. “He does not state that Necker Island would be used as collateral against any potential government support Virgin Atlantic may receive.”
Branson has pledged to inject $250m (£197m) into Virgin Group, his empire which stretches from planes and trains to health clubs and spaceships, and which employs about 70,000 people. The pledge – of which $100m is thought to be earmarked for the airline – is 5% of his fortune.
For love of the VI!
Branson is the 268th richest person in the world with an estimated $5.9bn paper fortune, according to the Bloomberg billionaires index. Branson founded Virgin Atlantic in 1984 and retains a 51% stake, alongside the US airline Delta with 49%.
According to The Guardia, on Monday, April 20, 2020, Mr Branson said he and his wife, Joan, “did not leave Britain for tax reasons but for our love of the beautiful British Virgin Islands and in particular Necker Island.
“Over time, we built our family home here. The rest of the island is run as a business, which employs 175 people. As with other Virgin assets, our team will raise as much money against the island as possible to save as many jobs as possible around the group.”
In February 2017, former US President Barack H. Obama and his wife Michelle visited Necker Island as guests of Mr Branson.
Mr Branson is also the owner of Moskito Island in the [British] Virgin Islands.
.png)
_Card_system_comimg_soon_flyer-06_(4).jpg)
Follow Us On
26 Responses to “Branson to mortgage Necker Island for airline bailout”
Who cares about this publicity stunt, meanwhile my neighbors can’t get food, I can’t help everyone, there’s kids suffering ! And y’all got time to post this @#$%& none sense, boss we got our own problems ain’t nobody should be concern about billionaires when our own people on this very island is suffering !!
Banks has $500 million to lend, it was a PR exercise because foreign banks can’t take a mortgage or any security without having a land holding license.
I though he lived on Mosquito now, and that Nicker Island was just a hotel.
He only hires the children of w..... expats for jobs of any importance. We just get to be the domestic help.