Home / Business / The British airline Virgin Altantic has declared bankruptcy in the United States

The British airline Virgin Altantic has declared bankruptcy in the United States



The aviation industry has been hit hard by the aftermath of the global covid-19 pandemic. These have led to a decrease in demand, and in many countries it has also reduced government travel to several months.

The airlines, founded by billionaire Richard Branson, announced a restructuring in July and agreed on a rescue plan worth £ 1.2 billion (SEK 34.7 billion).

The process, which the airline wants to complete by the end of September, is supported by most of the company’s creditors.

The airline’s lawyer told the media that the company needed a US court decision for the restructuring terms to apply in the United States.

Virgin Atlantic focuses primarily on long-haul flights, including flights between the United Kingdom and the United States. Due to the pandemic, the company stopped flying in April and resumed operations in July. The airlines closed their base at London̵

7;s Gatwick Airport and laid off about 3,500 people.

Branson, which has a 51% stake in the airline, has already asked the British government for help this year, but to no avail. Last month, the company said it had raised £ 1.2 billion from private sources.

Branson’s Virgin Group contributed £ 200 million, and Davidson Kempner, an investment company, lent £ 170 million to the company.

The American airlines Delta Air Lines, which has a 49% share in Virgin Atlantic, have agreed to postpone the repayments of the money owed. Branson still owns a 10% stake in Australia’s second largest airline, Virgin Australia.


Source link