Virgin Atlantic Files For Bankruptcy

5

Virgin Atlantic became another victim of COVID-19’s rampage through air travel, as it filed for bankruptcy protection today. Virgin, based in the U.K., filed for Chapter 15 protection despite asking for nearly $1.5 billion in assistance last month; the airline says it will run out of cash in September without an infusion. According to reports, the company will recapitalize over the next year and a half and continue to operate while in bankruptcy protection.

“With support already secured from the majority of stakeholders, it’s expected that the Restructuring Plan and recapitalisation will come into effect in September. We remain confident in the plan,” the airline said. Virgin Atlantic has already cut some 3,500 jobs since the collapse of air travel this spring and summer.

Other AVwebflash Articles

5 COMMENTS

  1. “Different markets, different value propositions, different economics. It’s not that mysterious.”

    Exactly, one Virgin company files for bankruptcy, another Virgin company is shedding 3,000+ employees and trimming down to one type of airplane for the post Covid 2020-24 travel models to stay afloat, while another Virgin company is getting funding from a variety of sources for their supersonic, 9-19 passenger jet. One part of the Virgin Group thinking supersonic corporate/airline travel customer’s will be there no matter what the state of the global economy when their supersonic concept might eventually fly, while another Virgin Group company is scaling back traditional airline travel for the next four years. Ultimately, all under Virgin Group leadership. All depends on where the money is at. If you are spending your money, pull back. if you are spending someone else’s…expand.