Virgin Atlantic has completed a £1.2 billion recapitalization. Having taken the final steps in the legal process, the airline is hoping to emerge from the Covid-19 crisis as a sustainably profitable carrier. However, the devastating impact of Covid-19 on global aviation continues unabated, and the airline said it must take further steps to ensure survival. These include cutting 1,150 jobs across the company.
Virgin Atlantic said it would work closely with unions Unite and BALPA to implement the cuts, with a company-wide consultation period of 45 days begins today. Shai Weiss, chief executive of Virgin Atlantic, commented: “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 private only, solvent recapitalization of Virgin Atlantic removes much of the uncertainty we faced and represents a major step forward in our fight for survival.”Virgin also joined growing calls for the introduction of a Covid-19 testing regime to boost confidence among travellers. Since March 16th it has not been possible for many British nationals to enter the United States upon arrival from the UK, Ireland, and the Schengen Area.
Since June, travellers arriving in the UK from the US have been subject to a 14-day quarantine. Such transatlantic flying is the core of the Virgin Atlantic model. As the airline increases passenger operations, it argued the opening of US borders and the removal of quarantine is imperative to recovery.
“After the sacrifices, so many of our people have made, further reducing the number of people we employ is heart-breaking but essential for survival. “I truly hope that as demand returns, we will see many members of our team returning to us.“The unique spirit of our people, the passion we have for our customers and each other, and the drive to do things better has been tested but not broken.“There will be a recovery, the timing, and speed of which is uncertain,” concluded Weiss.
