Sir Richard Branson has rubbed salt in British Airways' wounds by declaring BA practically worthless, and urging the government to resist any attempts to bail it out. Branson's comments will incense BA management, which this week will hold vital talks with cabin crew and ground staff over pay cuts, lay-offs and changes to working conditions aimed at saving £100m a year. Willie Walsh, chief executive, who is trying to stem big losses and has warned that BA faces a "fight for survival", wants a deal by June 30.

Branson, who founded Virgin Atlantic, BA's biggest commercial rival, said ministers should not be tempted to step in. "It would not be in Britain's interest," he said. "We and others are standing by ready to take on their routes and runway slots at Heathrow if they get into serious trouble. I thought the US government's bail-out of the car companies was a bad idea and it's the same for BA."

Virgin had looked at a bid for BA, Branson said, but concluded that the company's liabilities – in particular its pension deficit – were too great. "It's not worth much anymore because of the liabilities. We were thinking about if the shares went under 100p (they closed on Friday at 136½p), but it would be better to wait for its demise," he said.

Read the full article in The Sunday Times.


Of course the government shouldn't bail out BA. That money is needed for high speed rail.