Virgin Atlantic has agreed a rescue deal with shareholders and creditors worth 1.2 billion pounds ($1.5 billion) to secure its future beyond the coronavirus crisis, the British airline said on Tuesday.
“WE GREATLY APPRECIATE THE SUPPORT OF OUR SHAREHOLDERS”
The private-only deal removes the need for government support that had previously been sought by founder Richard Branson and is expected to be completed towards the end of this summer and be spread across the next 18 months.
The airline, which is 51 percent owned by Branson’s Virgin Group and 49 percent by US airline Delta, has had to close its Gatwick base and cut more than 3,500 jobs to contend with the fallout from the pandemic, which has grounded planes and hammered demand for air travel.
“The last six months have been the toughest we have faced in our 36-year history. We have taken painful measures, but we have accomplished what many thought impossible,” Chief Executive Shai Weiss said in a statement, adding that the carrier is targeting profitability from 2022.
“We greatly appreciate the support of our shareholders, creditors and new private investors and, together, we will ensure that Virgin Atlantic can emerge a sustainably profitable airline with a healthy balance sheet.”