Virgin Atlantic cuts 1,150 jobs amid $ 1.6B rescue plan

Virgin Atlantic completed its 1.2 billion pound ($ 1.6 billion) restructuring plan and cut 1,150 jobs on Friday as the airline sought to rebuild following the devastation caused by the COVID-19 epidemic.

The agreement was approved by the High Court in London earlier this week, and was formally recognized by a US court – the final step in the long-haul carrier’s legal process to rebuild its balance sheet and emerge from the crisis for. This led to job cuts as it announced that it was implementing the plan and causing further deterioration of the entire business.

Virgin Atlantic CEO Shai Weiss said, “After the sacrifices a lot of our people have made it heart-breaking and necessary by reducing the number of people we make.” “I really hope that as per demand, we will see many members of our team returning to us.”

Aviation is devastated by the spread of the virus, as governments around the world block travel to protect public health. The airlines kept begging for government help until the passengers felt comfortable returning to the skies.

Virgin Atlantic appealed passenger testing, saying it was the only way to enable it to remove travel restrictions to fly in major markets.

The airline announced a refinance package in July to ensure its survival after a 98 percent drop in passenger numbers in the second quarter. This included £ 600 million support from airline owners, Virgin Group and Delta Airlines, £ 450 million paid to creditors and £ 170 million financing from US-based Davidson Kempner Capital Management.

Virgin Atlantic, founded in 1984 by Richard Branson’s Virgin Group, has already cut 3,550 jobs, ceased operations at London’s Gatwick Airport and has to retire 11 aircraft in search of a recessionary season in air travel The plan is announced. The airline says this does not expect passenger volumes to return to pre-epidemic levels by 2023.

In December 2012, Delta invested $ 360 million in Virgin Atlantic, acquiring a 49 percent stake in the airline. Virgin Group holds the remaining shares.

Virgin flies to Heathrow Airport in London and Manchester to destinations in the US, China, India, Pakistan, South Africa, Nigeria, Israel and the Caribbean.


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