Virgin Atlantic

History

2022: Halting Hong Kong flights from Britain as skies close over Russia

In October 2022, it became known that Virgin Atlantic was stopping flights to Hong Kong from Britain due to the closure of the sky over Russia.

2020

Bankruptcy application

On August 4, 2020, Virgin Atlantic filed for bankruptcy. The British air carrier appealed to the New York Bankruptcy Court with a statement about the start of the restructuring process under Art. 15 of the US Bankruptcy Act. This article is intended for foreign private companies that find themselves in a state of bankruptcy, which seek to resolve the claims of creditors in their countries.

It is known that the shareholders of the British Virgin Atlantic agreed with investors and creditors to raise funding to save a company affected by the crisis caused by the COVID-19 coronavirus pandemic. As part of the restructuring plan, it is expected to attract approximately £1.2 billion ($1.5 billion).

Virgin Atlantic airline files for bankruptcy

Shareholders of Virgin Group and Delta, as well as a new attracted investor, the American hedge fund Davidson Kempner, will provide Virgin Atlantic with financial support (£200 million ($262 million) - Virgin Group, £150 million ($188 million) - Davidson Kempner), thanks to which it will be able to get out of the crisis in 2022. On August 25, a British court is due to consider and rule on Virgin Atlantic's restructuring plan, as well as an agreement with shareholders and creditors to refinance obligations.

Virgin Atlantic noted that this private deal with stakeholders eliminates the need for support from the UK government, which the founder of the company, Richard Branson, hoped for . The restructuring is expected to be completed by the end of summer 2020 and extend to the next 18 months. The airline also noted that it needs these measures not only to survive the consequences associated with the global COVID-19 pandemic, but also to successfully progress in the market after the end of the global crisis.^[1]

Cutting a third of the state

In early May 2020, it became known that the Virgin Atlantic airline of billionaire Richard Branson is cutting 3,150 employees from a staff of ten thousand people, and is also completely stopping flights from Gatwick Airport in order to survive the coronavirus (COVID-19) crisis.

The airline said it would not be able to reach 2019 levels until three years later and announced restructuring plans. Virgin Atlantic is cutting a third of the state and leaving Gatwick Airport, where it has been based for the past 35 years. The company will move to London Heathrow but still retains its base at Manchester Airport.

Richard Branson's Virgin Atlantic airline cuts a third of the state

If we are to protect our future and emerge from this crisis with a sustainably profitable business, it is time for us to take decisive action to reduce our costs and preserve cash. We must protect assets and try to save as many jobs as possible, - commented on the decision on mass layoffs, Virgin Atlantic CEO Shai Weiss. - Our goal is to return to the profitability zone in 2021. After the events of 9/11 and after the global economic crisis of 2008, we also reduced staff, but fortunately were able to return many workers to the staff over the next two years. We hope to return employees this time, but it all depends on the duration of the crisis and its consequences.

Shai Weiss warned that current cost measures and support packages were "insufficient." Virgin Group, which owns a 51% stake in Virgin Atlantic, will look to find new investors throughout May. The company was also in talks with the UK government in April to provide £500m in commercial loans and guarantees.^[2]

Notes