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Sir Richard Branson’s Virgin Atlantic Airways is plotting a surprise flotation on the London Stock Exchange as it pins its hopes on a rapid rebound in transatlantic travel.

Sky News has learnt that Virgin Atlantic has been holding talks with institutional investors about making its public market debut just five months after landing a fresh £160m capital injection.

City sources said this weekend that institutions’ response to management presentations led by the airline’s executives had been positive, and that an autumn announcement of an intention to float now looked likely.

An initial public offering (IPO) would mark the first time since Virgin Atlantic’s launch in 1984 that it has sold shares to the public – and would almost certainly see Sir Richard relinquish overall control of the business.

Bankers at Citi and Barclays have been hired to oversee the listing, according to insiders.

Virgin Atlantic is majority-owned by Sir Richard’s Virgin Group, which holds a 51% stake.

Delta Air Lines owns the remaining 49%, with the company having scrapped a deal in late 2019 that would have seen Air France-KLM acquiring a 31% shareholding from Sir Richard.

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Selling shares to the public would inevitably mean Virgin’s stake being diluted unless Sir Richard elected to subscribe for new equity in the IPO.

A flotation of Virgin Atlantic would be another milestone for an airline which has been among the industry’s worst-hit by the pandemic, largely because of its dependence on lucrative UK-US flights.

Last September, it assembled a £1.2bn rescue package which included a £200m injection from its founder, a loan from the American hedge fund Davidson Kempner Capital Management, and substantial contributions from existing creditors.

That restructuring was implemented on a solvent basis, but only after administrators had been placed on standby.

The aviation industry’s failure to stage a rapid recovery amid continued travel restrictions led Virgin Atlantic to seek a total of approximately £300m more – in two instalments – that was generated by the sale of several Dreamliner aircraft and a further loan from Virgin Group.

Virgin Atlantic is not in urgent need of new funding, with adequate financing in place to see it through the next few months, according to insiders.

However, executives including Sir Richard are said to back the idea of a listing to provide additional future opportunities to raise money during the post-COVID recovery and beyond.

A presentation to City investors made in the last few days is said to focus on Virgin Atlantic’s strong positioning to take advantage of pent-up demand for international travel.

Bookings on the key New York-to-London route are said to have surged by 150% this month, although the industry continues to seek further concessions from the Biden administration to open up travel to the US for fully vaccinated passengers.

Virgin Atlantic has also nearly halved its workforce since the start of the pandemic – a move that has helped to drive significant longer-term cost savings.

Going public would bring Virgin Atlantic into line with many of its publicly traded peers, such as British Airways’ parent International Airlines Group, easyJet, Ryanair, American Airlines and Cathay Pacific.

Between them, IAG and easyJet have raised billions of pounds to steer them through the COVID-19 crisis, although they are likely to require further funding given that many executives do not believe pre-coronavirus levels of demand will be seen again until 2024.

Virgin Atlantic is not the only part of Sir Richard’s business empire which has felt the pressure of the pandemic.

The UK arm of Virgin Active also came close to collapse after putting a restructuring deal to landlords, lenders and shareholders.

His Virgin Voyages cruise operation finally embarked on its maiden journey this week after more than a year of setbacks.

Nevertheless, the billionaire tycoon has been buoyed by the performance on the New York stock market of Virgin Galactic, which has soared in value and enabled him to raise hundreds of millions of pounds to prop up struggling leisure and travel businesses.

Last month, Sir Richard flew aboard a Virgin Galactic trip to the edge of space, days before his even-wealthier rival, the Amazon founder Jeff Bezos, did the same on a Blue Origin vehicle.

Sir Richard is now in the process of taking Virgin Orbit public through a merger with a US-listed special purpose acquisition company (SPAC).

A Virgin Atlantic spokesman said the airline did not comment on speculation.

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Vodafone internet services down for thousands of users

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Vodafone internet services down for thousands of users

Tens of thousands of Vodafone users are reporting problems with their internet

The outages began on Monday afternoon, according to the monitoring website DownDetector, which reported more than 130,000 issues with Vodafone connections.

A spokeswoman for the company said: “We are aware of a major issue on our network currently affecting broadband, 4G and 5G services.

“We appreciate our customers’ patience while we work to resolve this as soon as possible.”

The company has more than 18 million UK customers, with nearly 700,000 of those using Vodafone’s home broadband connection.

Vodafone users vented their frustration on social media.

“It’s like Vodafone has just been wiped off the earth. Not a single thing works,” said one X user.

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Vodafone users were shown an error message when trying to access the internet provider's app
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Vodafone users were shown an error message when trying to access the internet provider’s app

The Vodafone app also appeared to be down for users, with the company’s website briefly going down too.

The ‘network status checker’ on the website was also down, and when Sky News tried to test the customer helpline, it did not ring.

“There’s Vodafone down and then there’s Vodafone wiped off the face of the f***ing planet,” posted another X user.

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Jake Moore, global cybersecurity advisor at ESET, said the outage shows how reliant we are on modern infrastructure like mobile networks.

“Outages will always naturally raise early suspicions of a potential cyber incident, though current evidence points more towards an internal network failure than a confirmed attack,” said Mr Moore.

“The sudden outage, combined with the inability to access customer service lines, mirrors classic symptoms of a distributed denial-of-service (DDoS) attack, where attackers overwhelm the network so the site or systems collapse.

“However, malicious or not, this once again highlights our heavy reliance on digital infrastructure, especially in an age where we increasingly depend on mobile networks for everything,” he said.

“Ultimately, resilience is essential, whether the cause is a direct cyberattack, a supply chain issue or a critical internal error.”

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Lloyds estimates £1.95bn hit from motor finance scandal

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Lloyds estimates £1.95bn hit from motor finance scandal

Lloyds Banking Group has set aside a further £800m to cover estimated costs associated with the car finance mis-selling scandal.

The bank said the sum took its total provision to £1.95bn.

It had been assessing the impact since the Financial Conduct Authority (FCA) revealed last week it was consulting on a compensation scheme, with up to 14.2 million car finance agreements potentially eligible for payouts.

The regulator had previously found that many lenders failed to disclose commission paid to brokers, which could have led to customers paying more than they should have between April 2007 and November 2024.

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Eligible customers could receive an average of £700 each under the proposals.

Lloyds said on Monday that it would be contributing to the consultation to argue a number of points.

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It said: “The Group remains committed to ensuring customers receive appropriate redress where they suffered loss, however the Group does not believe that the proposed redress methodology outlined in the consultation document reflects the actual loss to the customer. Nor does it meet the objective of ensuring that consumers are compensated proportionately and reasonably where harm has been demonstrated.

“In addition, the approach to unfairness in the redress scheme does not align with the legal clarity provided by the recent Supreme Court judgment in Johnson, in which unfairness was assessed on a fact specific basis and against a non-exhaustive list of multiple factors. The Group will make representations to the FCA accordingly.”

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Car finance: ‘Don’t use a claims firm – here’s why’

Shares in Lloyds, which fell last week when the bank warned of a potential “material” increase in its provisions, gained more than 0.5% on Monday.

The estimated compensation figure came in below the sum some financial analysts had predicted.

The shares remain more 50% up in the year to date.

Another listed lender exposed to car loan mis-selling is also expected to raise the amount it has set aside.

Close Brothers, which has a £165m provision currently, saw its shares tumble 7% when it admitted an increase was likely once its analysis of the compensation consultation documents was completed.

Car finance makes up approximately a quarter of its total loan book.

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Farming community responds to rumours of an inheritance tax U-turn

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Farming community responds to rumours of an inheritance tax U-turn

The budget may still be more than six weeks away, but rumours of U-turns and changes are already in full swing.

Over the last few days, there have been multiple reports that those inside Whitehall are considering tweaks to the controversial inheritance tax (IHT) reforms on farms announced this time last year.

Plans to introduce a 20% tax on estates worth more than £1m drew tens of thousands to protest in London, many fearing huge tax bills that would force small farms to sell up for good.

Now there are reports the tax threshold could be increased from £1m to £5m (£10m for a married couple) – a shift that would remove smaller farms from being liable to pay.

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From February: Farmers continue tax protest

Senior figures in farming have long believed a rise could be the solution to save the smaller farms and it would satisfy most.

However under the proposals, the 50% relief on IHT would be removed for farms above the new threshold.

That means bigger farms, responsible for producing a large amount of produce in our supermarkets, could bear the brunt of the tax burden with the Treasury potentially increasing revenues.

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Two senior farming figures told me today that while a threshold increase is welcome, it does nothing to solve an “insolvable” problem.

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Big farms have more land to sell, but then they become smaller farms and either produce less, or even divide up, to avoid the tax entirely.

Richard Cornock runs a small dairy farm in south Gloucestershire, which has been in his family since 1822.

Richard Cornock plans to pass his farm on to his son
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Richard Cornock plans to pass his farm on to his son


He hopes to pass it on to his son Harry, who is now 14 and training to become a farm manager.

“I’ve been under so much stress like most farmers worrying about this tax,” he said. “And I really hope they do push the boundaries on the thresholds, because the million pounds they propose at the moment is ridiculous.

“It’s been on my mind the whole time to be honest. I even looked into getting life insurance to insure my life and I can’t get it because I had a heart condition. And that was one way I thought I might be able to cover my kids…”

We paused our chat as he was too upset to continue – an illustration of the stress farmers like him have been under over the last 12 months.

Tens of thousands from the farming community took part in protests in London. Pic: Reuters
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Tens of thousands from the farming community took part in protests in London. Pic: Reuters

The government says it won’t comment on “speculation” about any possible changes, but it has previously defended the IHT reform, saying most estates would not pay and that those who will be liable can spread payments over a decade.

Labour is under pressure to do something to appease the angry farmers, a rural vote that turned from the Conservatives at the last election.

I ask Richard whether any tweak or row back on IHT will restore faith in Labour?

“The damage has been done,” he says.

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