Virgin Atlantic Airways, Ltd. is considering a public offering in London. According to an unknown affiliate, executives have been meeting with bankers and possible investors and could disclose the company’s plans for an IPO as early as fall. This recovery marks another fantastic win for an industry that was devastated by the pandemic.
Background Behind Virgin Atlantic Airways
Virgin Atlantic Airways Ltd is a privately owned British airline that was established in 1984. The airline deploys flights all over the world to destinations such as the Caribbean, Asia, Africa, and the Middle East. The Virgin Group, run by chairman Richard Branson, owns 51% of the company, while Delta Air Lines owns the remaining share.
For the first time since its creation in 1984, the public would be able to own shares in entrepreneur Richard Branson’s flagship airline if they decide to move forward with the IPO. Delta Air Lines, Inc. currently owns 49%.
The listing would follow a tumultuous 18 months for Virgin, which saw flights almost come to a halt throughout the world as the coronavirus outbreak slowed air traffic. In April, the firm said it expected losses of more than $1.39 billion throughout the year; however, the firm intends to be profitable again in 2022. To get through the crisis, the corporation has completed a number of funding rounds and has even sold some of their planes.
In April, Virgin Atlantic’s Chief Executive Officer Shai Weiss stated that whenever travel begins, the airline does not foresee a major decline in long-haul pricing in key markets. Depending on the extent to which Virgin participates in a future IPO, Branson’s Virgin Group will likely diminish its interest in the long-distance aviation company.
Investors Dealing with Travel-Based Companies
Many investors of large airlines, cruise lines, and other travel-based companies lost both money and confidence in the industry over the past year and a half. While investors wait out the pandemic-caused irregularities of the market, smaller travel companies may be the ideal venture for someone looking to get in at low costs and seek the tax benefits of investing in a qualified small business.
We’ve seen countless innovative, pandemic-proof startups born out of 2020 and the travel industry will be no exception to this. Check out our website to learn more about the qualities of an ideal QSBS investment.
This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.