Peter Norris, the chairman of Virgin Atlantic Airways’ majority shareholder, Virgin Group, will write to Boris Johnson on Monday to warn that the airline industry needs immediate financial aid to survive.
Upto 7.5 billion is needed to avert a catastrophe that would wipe out tens of thousands of jobs, the PM will be told next week.
Sources said that Mr Norris’s letter, which is also understood to be being signed by Shai Weiss, Virgin Atlantic’s chief executive, would ask the government to provide airlines with a credit facility to help them finance themselves through a potentially protracted period of negligible revenue.
The support, which the Virgin chairman estimates would be worth between £5bn and £7.5bn across the industry, would include cash advances and guarantees, as well as other measures to ensure that credit card companies do not continue to hoard revenue from airline bookings.
One source close to the airline, which was founded by Sir Richard Branson in 1984, said that Mr Norris would also ask the PM to extend the timetable for allowing airlines to keep planes grounded without losing their prized take-off and landing slots for the entire summer season.