Virgin Atlantic secures funds to avoid collapse in September

After Virgin Atlantic warned that it’d run out of cash in September and collapse, its fortunes had been reversed as collectors accepted a proposed rescue plan.

The plan, value as much as £1.2 billion ($1.6 billion), will safe Virgin Atlantic’s future for no less than 18 months and save 6,500 jobs on the airline.

“Reaching this milestone places Virgin Atlantic ready to rebuild its steadiness sheet, restore buyer confidence and welcome passengers again to the skies as quickly as they’re able to journey,” acknowledged a Virgin Atlantic spokesperson, reported Reuters.

Virgin Atlantic has two extra hurdles to clear, as London’s Excessive Courtroom must approve the plan. As well as, a second listening to shall be held in the US, the place the airline filed for Chapter 15 chapter in August 2020.

“We stay assured that the plan represents the absolute best end result for Virgin Atlantic and all its collectors and imagine that the court docket will train its energy to sanction the restructuring plan,” added the spokesperson.

The plan goals to chop prices as a lot as £280 million ($369 million), because it has retired older and fewer environment friendly plane, together with seven Boeing 747s. The provider additionally withdrew from London-Gatwick, closed its base there and is now specializing in offering companies from London Heathrow Airport (LHR) and Manchester Airport (MAN). Nonetheless, the corporate has retained its slots on the airport to “defend alternatives for future progress.”

 

Subscribe Our Newsletter