UPDATE 2-Britain to stricken airlines: try raising your own money first

(Adds details from letter, airline comments)

LONDON, March 24 (Reuters) - Britain has told airlines it
will only consider stepping in to help them survive the
coronavirus crisis once they have explored the possibility of
raising capital from other sources including existing investors.

The aviation industry is hoping for a specific aid package,
in addition to the support measures already announced for
British businesses, after the finance minister said last week
that he would hold discussions with airlines and airports.

UK airlines such as easyJet, IAG-owned
British Airways and Virgin Atlantic have almost no revenue
coming in after demand for air travel came to a standstill,
forcing them to ground hundreds of planes, and putting thousands
of jobs and the future of the sector at risk.

But any special aviation assistance package appeared to be
on ice on Tuesday, after a letter from the finance minister
Rishi Sunak to airlines and airports.

The letter told airlines to look at their financial
positions following the government measures for all business
announced last week, which included a promise to pay a massive
share of private sector wage bills and a deferral of value-added
tax bills.

"We would expect all companies to be pursuing all possible
actions to preserve cash and maximise liquidity, including
engaging with shareholders, lenders and the markets, and
utilising all available assets and facilities," Sunak said in
the letter, dated Tuesday, which was posted by media on Twitter.

The British guidance came as the aviation industry body IATA
called on governments to hurry up and provide bailouts or risk
half of airlines facing possible bankruptcy within weeks.

Sunak's letter also said, however, that the transport
minister was still discussing industry-wide measures to help
with the crisis.

A report in the Financial Times on Saturday said that the
British government was planning to buy equity stakes in airlines
and other companies affected by the pandemic.

JOBS, LIQUIDITY

Earlier this month, easyJet and Virgin Atlantic asked for
government support to help them survive. IAG, a long-time critic
of state support for airlines, has not publicly asked for help.

Both easyJet and IAG have said in recent weeks that they
have strong balance sheets.

IAG declined to comment on Sunak's letter on Tuesday.

EasyJet said it was reviewing the letter alongside the
government measures announced last week. "Our immediate focus is
on liquidity and protecting jobs and we are working with the
government to make best use of these measures," a spokeswoman
added.

The budget carrier specifically asked the government for
access to finance to help with liquidity crunches, the
suspension of passenger taxes and air traffic charges, and
longer relaxation of airport slot rules.

The company has come under fire for asking for government
support in the same week as it paid out 174 million pounds to
shareholders in dividends. It said it was legally obliged to
make the payment following decisions made before the crisis.

Virgin Atlantic, which had asked for the government to
provide up to 7.5 billion pounds in emergency credit facilities,
declined to comment on Sunak's letter. It is owned by
billionaire Richard Branson and U.S. airline Delta.
(Reporting by Sarah Young and William Schomberg; Editing by
Estelle Shirbon and Pravin Char)