Virgin Atlantic is saved in rescue deal, but another 1,150 jobs to go
VIRGIN ATLANTIC plans to cut another 1,150 jobs but has completed its £ 1.2bn rescue deal launched in the wake of coronavirus, the airline has confirmed.
The announcement comes less than four months after the carrier axed 3,150 roles and ended its operations at Gatwick Airport due to the collapse in demand caused by the pandemic.
Chief executive Shai Weiss said: “After the sacrifices so many of our people have made, further reducing the number of people we employ is heartbreaking but essential for survival.
“I truly hope that, as demand returns, we will see many members of our team returning to us.”
The latest job cuts are part of “further downsizing across the business”, Virgin Atlantic said in a statement. It has started a 45- day consultation period with unions Unite and Balpa.
The airline’s £ 1.2bn bailout was
completed following approval by courts in the UK and the USA.
The deal involves only private funds, including a cash injection of £ 200m from founder Sir Richard Branson’s Virgin Group.
As part of the package, creditors agreed to accept 20 per cent less than they are owed and for the carrier’s repayments to be rescheduled.
The airline warned last month it could run out of money by the end of September if the deal was rejected.
Mr Weiss said: “Together, we have achieved what many thought impossible and that is down to the efforts and sacrifices of so many across the company.
“The completion of the privateonly, solvent recapitalisation of Virgin Atlantic removes much of the uncertainty we faced and represents a major step forward in our fight for survival.
“We greatly appreciate the support of our shareholders, creditors and new private investors and together, we will ensure that the airline continues to provide vital connectivity and competition.”
The airline called for the UK and US to introduce “robust passenger testing regimes” to enable travel restrictions to be lifted.
Unions called the move a “serious blow”, adding that the aviation industry was key to the health of the British economy.