Virgin Blue says no to capital raisingBudget airline Virgin Blue...

Virgin Blue says no to capital raising

Budget airline Virgin Blue has ruled out holding a capital raising to fight falling passenger numbers after its largest shareholder billionaire Richard Branson said is unwilling to have his holding diluted, according to The Sydney Morning Herald newspaper.

Brett Godfrey has admitted February will be a difficult month for the airline, with forwards bookings four per cent lower than the same period last year.

But Virgin has ruled out following Qantas Airlines lead, and said it would not raise capital because "we don't need it."

Mr Branson said shareholders did not want their stakes diluted.