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Virgin has denied reports Sir Richard Branson is seeking a buyer for Virgin Atlantic to save the airline from collapse.

It had been claimed he was looking for a buyer and set an end-of-May deadline.

But the company has insisted Branson and the Virgin Group "are committed to the airline, and are not looking to sell Virgin Atlantic."

However, hopes of getting a £500million government package have been shelved and the airline is now hunting a private investor or investors, The Sunday Telegraph understands.

It's believed there are around 50 potential investors who have asked for more information.

Amongst those interested in rescuing the airline reportedly include Lansdowne Partners, a hedge fund founded by George Osborne’s best man Peter Davies, Singapore sovereign wealth fund Temasek and Northill Capital, the fund backed by Ernesto Bertarelli.

Accountancy firm EY is also thought to be in the running for any 'potential appointment,' according to sources.

(Image: Tom Wren SWNS)

But putting Virgin Atlantic into administration is also understood to be an option.

A Virgin Atlantic spokesperson told Mirror Online: “Because of significant costs to our business caused by unprecedented market conditions which the Covid-19 crisis has brought with it, we are exploring all available options to obtain additional external funding.

"Houlihan Lokey has been appointed to assist the process, focusing on private sector funding.

"Meanwhile, we continue to take decisive action to reduce our costs, preserve cash and protect jobs.

"Discussions with a number of stakeholders continue and are constructive, meanwhile the airline remains in a stable position.

"Virgin Atlantic is committed to continuing to provide essential connectivity on competitive terms to consumers and businesses in Britain and beyond, once we emerge from this crisis.”

(Image: AFP via Getty Images)

On Monday, Branson offered up his £80million Necker Island as collateral for a £500million Virgin Atlantic bailout.

The group chief warned the airline could go bust without the bailout from public funds.

Branson, worth an estimated £3.8billion, said in an open letter that Virgin Group will do "everything we can" to keep the airline going.

In the letter posted to Twitter he said he would be prepared to put his private island up as collateral to save the business.

He lives on the tax-free British Virgin Island with his wife, Joan after he purchased it in 1980 when he was 29-years-old.

Branson said: "But we will need government support to achieve that in the face of severe uncertainty surrounding travel today and not knowing how long the planes will be grounded for.

"This would be in the from of a commercial loan - it wouldn't be free money and the airline would pay it back (as easyJet will do for the £600 million loan the government recently gave them).

"The reality of this unprecedented crisis is that many airlines around the world need government support and many have already received it."

A Virgin Group spokesperson added: “Virgin Group is providing liquidity to help support its companies and save jobs.

"Richard and the Virgin Group are committed to the airline, and are not looking to sell Virgin Atlantic."