Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Virgin Atlantic plans 1,150 more job cuts

Published 09/04/2020, 09:52 AM
Updated 09/04/2020, 10:30 AM

Virgin Atlantic confirmed the completion of its $1.59 billion rescue deal on Friday (September 4), after a London court gave it the go-ahead earlier in the week.

But the airline says it needs to go further.

And that means another 1,150 roles will be axed.

Virgin says it's entering a company-wide consultation and will work with unions on the cuts.

The carrier has been hit by restrictions on British nationals going to the U.S., and expects current skeleton operations to be extended to next year.

Transatlantic flying is 70% of Virgin Atlantic's network.

It had previously said it would run out of cash at the end of September unless the rescue plan was approved.

On Thursday (September 3) a U.S. bankruptcy judge formally recognised the airline's rescue plan under the country's bankruptcy code.

The move allows a foreign debtor to shield assets from creditors in the United States.

Elsewhere, Virgin Australia was also taking steps to resolve its woes.

The creditors of Australia's second-biggest airline voted on Friday in favour of its purchase by U.S. private equity group Bain Capital.

The deal will allow the carrier to emerge from voluntary administration, which it had entered in April.

Bain Capital said in a statement the approval was an important milestone in the airline's recovery.

Under Bain's business plan, Virgin will cut a third of its workforce.

The carrier will now focus on being a domestic and short-haul international Boeing (NYSE:BA) 737 operator competing against rival Qantas.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.