Airlines may never fully recover from the coronavirus pandemic after Sir Richard Branson's Virgin Atlantic became the first long-haul airline to ask for a £500million bailout, aviation experts warned today.

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Airlines may never fully recover from the coronavirus pandemic after Sir Richard Branson's Virgin Atlantic became the first long-haul airline to ask for a £500million bailout, aviation experts warned today.

Last night, Virgin Australia, which is 10 per cent owned by Branson, collapsed with debts of $5billion after failing to secure a government loan of $1.5 billion.

The killer virus has already ravaged airlines around the world, with Flybe going into administration in March, regional carriers Trans States Airlines and Compass Airlines in the US collapsing and easyJet securing a £600 million loan earlier this month.

However, with the collapse of Virgin Australia - and the desperate plea from Virgin Atlantic boss Branson for an emergency £500 million bailout - major international carriers are also now in danger of failing.   

Despite public anger at potential bailouts, industry experts have warned airline survival is entirely dependent on government's investment, with some admitting that, even with public funds, it still might not be enough. 

Others have questioned whether it is time for the government to refrain from bailing out airlines altogether. 

Last night, Virgin Australia, which is 10 per cent owned by Sir Richard Branson, collapsed with debts of $5billion after failing to secure a government loan of $1.5 billion

Sir Richard Branson's Virgin Atlantic became the first long-haul airline to ask for a £500million bailout

It comes after Flybe collapsed amid the shutdown caused by the coronavirus pandemic

The killer virus has already ravaged airlines around the world, with regional carriers Trans States Airlines and Compass Airlines in the US collapsing and easyJet securing a £600 million loan earlier this month

The Virgin Group boss said the airline needs taxpayer support in the form of a commercial loan

Andrew Charlton, managing director of Aviation advisory, told Mail Online: 'It is not Virgin's troubles that will affect the industry, it is that the industry's troubles have affected Virgin.

'The first thing to note is that we simply do not yet know how long this will last. If it started raining vaccine tonight, we might still be looking at a lot of airlines that will struggle to survive. 

'How long the airlines survive will depend on how much cash they, and their governments, have or are prepared to commit. It is that simple.

'It might be that the better course of action is to not to continue propping up airlines but put them in mothballs and redesign the system entirely.'

Julie Palmer, partner at Begbies Traynor, added: 'During this time airlines will undoubtedly look to governments for bail outs, but the real question is whether governments will use up some of their dwindling supply of cash to bail out the airlines. 

Sir Richard, 69, has offered his £80million private Caribbean island Necker (pictured) as collateral for any public money spent on trying to save the airline

'Major players with cash reserves such as BA, or those with wealthy backers such as Virgin may fall down waiting list when it comes to dishing out government funds. 

'After this crisis there are several factors that will continue to batter the industry. 

'Debts will be larger or cash piles smaller for airlines meaning less money to invest in new advancement or routes, desire for travel to certain areas that are deemed 'at risk' will fall and an enhanced enthusiasm for lower carbon travel, especially as near global lockdown forces emissions down. 

'The aviation sector, including those manufacturers and other businesses that supply it, will be landing In an entirely different world other side of Covid-19. And some may not survive the journey to find out what that looks and feels like.'

Carl Jackson, managing partner at business advisory firm Quantuma, said: 'Reserves and liquidity are the two keys financial factors that will dictate which airlines emerge comparatively unscathed. Those with limited reserves and poor liquidity are undoubtedly in trouble. However, if they fail - and some might - their routes, capacity and employees will be acquired by competitors. 

Virgin Australia employee Tony Smith (centre) speaks to reporters at Melbourne Airport on Monday as the company battled to stay afloat

'After limited short-term disruption to the travelling public, who at the moment are not travelling anyway, a new normal will emerge. 

'On that basis, one has to question whether there would be any merit or justification for public money to be used to bail out private businesses simply for the benefit of their shareholders.' 

Chris Tarry, an aviation industry expert and adviser, said that governments must weigh up the economic benefits of bailing out airlines against the cost to the public. 

He said: 'Virgin Atlantic is not the first to ask for government help and won't be the last. Governments however have to be very clear in what they are investing in and the probability of a return both financial and economic.'

He also warned: 'After the pandemic, air travel will have changed structurally and it will take a very considerable time for the number of flights and passengers to reach previous level

'At the present time it is impossible to predict when this might be.'  

A spokesman for York Aviation said: 'Virgin is an important part of the airline market in the UK. It provides economically important long haul connectivity, including from regional airports, and benefits consumers through the competition it provides in the market, which may be hard to replace. 

Domestic tourism operators are terrified that if Virgin Australia's fleet is removed from the skies that a Qantas monopoly would cause airfares to rise, killing their businesses

'The UK needs to try to preserve its market structure as far as possible in the face of what is an immensely difficult time for the air transport industry. Virgin is not the first airline to seek support to get through the current crisis and it will not be the last. 

'We need to be looking at how we can support airlines and airports to enable them to support our economic recovery.'   

Peter Knapp, Chairman and Chief Creative Officer at Landor, warned meanwhile:  'The biggest challenge for the airline industry will be weaning people back to travelling. People have got used to dealing with video conferencing and maintaining virtual relationships. 

'A lot of people will question the value of flying. The industry will have to demonstrate its value again and that will be its biggest obstacle.' 

The warnings come as Sir Richard fights to save Virgin Atlantic in the UK, amid fears it could also go under because of the coronavirus.  

The Virgin Group boss, who is estimated to be worth more than £3.5billion said Virgin Atlantic needs UK taxpayer support in the form of a commercial loan, with reports indicating that the carrier is asking for up to £500 million of public money.

The billionaire businessman offered his own private Caribbean island of Necker, estimated by Forbes to be worth £80m - less than one fifth of the figure being requested - as collateral for any taxpayer cash used to save the struggling airline.

Sir Richard yesterday posted a message on Twitter saying Virgin Atlantic employees in the UK had 'virtually unanimously' decided to take a wage reduction to save jobs and 'if the UK government does help Virgin Atlantic to survive, it will not be free money but repaid on commercial terms'.

He said that he lives on Necker, the island he bought aged 28, because he 'loves the British Virgin Islands' and his companies 'all pay tax in the countries they operate in'. 

The tycoon added that his team would 'raise as much money against the island as possible to save as many jobs as possible'. 

Virgin companies employ more than 70,000 people across 35 countries and Sir Richard added that recovery would 'depend critically' on governments implementing and mobilising support programmes which they had announced.  

Today after Virgin Australia went into administration he tweeted: 'Dear @VirginAustralia team. I am so proud of you and everything we have achieved together. 

'This is not the end of Virgin Australia, but I believe a new beginning. I promise that we will work day and night to turn this into reality.'

Richard Branson's property portfolio 

From islands to Swiss Alp chalets, there is no property left on earth that Richard Branson could not afford to buy if he so wanted.

So what has the 69-year-old opted to spend his money on?

1. Mahali Mzuri - a safari camp in the Kenyan Bush

Tents in the Mahali Mzuri - a safari camp in the Kenyan Bush, where you can stay for £1200 a night per person 

In 2013 Sir Branson commissions locals to build a 12-tent luxury safari resort complete with infinity pools and a spa in the middle of the Kenyan Bush.

Guests can stay in one of the tents at the resort for £1200 a night per person during high season, and may catch sight of elephants, zebra, lions, leopards, cheetahs and giraffes during their stay - armed guards protects the tents from predators.

Sir Brandson states his fondness for safari on the resort's website: 'When you think of going on safari in Kenya, one of the first things that comes to mind is the Great Migration. Words just can't do justice to the majesty of this awe-inspiring spectacle. I hope you enjoy your Kenyan adventure as much as I always do.' 

Armed guards protects the guest's tents from predators such as lions 

2. Roof Gardens, Kensington High Street, West London

In one of London's most costly areas for real estate, the billionaire has bagged himself a Grade II listed English Heritage roof top garden that spans an incredible 1.5 acres, and is not visible from the shopping high street. 

The gardens boast a members club and restaurant and were bought by Sir Branson in 1981, after he was refused entry to the club twice, reports Bisnow.

3.  Kasbah Tamadot - A Morroccan hideaway

'Welcome to Kasbah Tamadot!': Guests can stay in a standard room for £570 a night or rent the entire place for £38,927 a night

 Sir Branson bought the hotel to add to his Virgin Limited Editions in 2005 after his parents enjoyed a stay at the 28-bedroom retreat, overlooking Mount Toubkal in the Atlas mountains.

Branson states on the website: 'Welcome to Kasbah Tamadot! This magical place is perfect for rest and relaxation. Enjoy the fresh mountain air as you wander around our beautiful gardens, or go on a trek through the High Atlas Mountains... I hope you enjoy your stay.'

Guests can stay in a standard room for £570 a night or rent the entire place for £38,927 a night.

4. The Lodge - A Verbier, Switzerland, Ski Chalet  

Mr Branson writes on its website: 'Welcome to The Lodge! From the moment I saw it I knew this beautiful chalet in the Swiss Alps was destined to become my favourite'

In an area often frequented by high-profile friends such as Leonardo di Caprio and David and Victoria Beckham during ski season, the nine-bed ski chalet sits next to Prince Andrew and his ex-wife Sarah Ferguson's skiing pad, reports Bisnow.

It can be rented exclusively for £118,039 a week. 

Mr Branson writes on its website: 'Welcome to The Lodge! From the moment I saw it I knew this beautiful chalet in the Swiss Alps was destined to become my favourite mountain hideaway. I chose Verbier because it's an amazing year round destination and offers world-class skiing, fabulous après-ski and everything you could wish for in a summer escape! Para-gliding, rock climbing, mountain biking... you name it! I hope you too will enjoy your experience at The Lodge as much as I always do. ' 

 5. Necker Island, Caribbean 

Mr Branson himself lives on Necker, the British Virgin island he bought aged 28

Would you like to rent an island for the day? Well Mr Branson has made that possible for £34,000 a night.

Mr Branson himself lives on Necker, the island he bought aged 28, because he 'loves the British Virgin Islands' and his companies 'all pay tax in the countries they operate in'.