Virgin Atlantic announces 1,150 more job cuts as £1.2 billion rescue deal is approved

4 September 2020, 12:36 | Updated: 4 September 2020, 13:23

Virgin Atlantic has announced 1,150 more job losses
Virgin Atlantic has announced 1,150 more job losses. Picture: PA

By Kate Buck

Virgin Atlantic has announced 1,150 more job cuts and has completed its £1.2 billion rescue deal, the airline said.

The announcement comes less than four months after the carrier axed 3,150 roles and ended its operations at Gatwick Airport.

Chief executive Shai Weiss said: "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."

Last week, the airline's creditors voted to approve the deal, which Virgin Atlantic said was a "significant milestone in safeguarding its future".

At a remote court hearing on Wednesday, Mr Justice Snowden sanctioned the restructuring plan - a key step of the process being used by Virgin Atlantic to implement the rescue package.

He said this should allow the airline to make the plan effective by Friday.

The £1.2 billion rescue deal, announced in July, involves only private funds, and includes a cash injection of £200 million from founder Sir Richard Branson's Virgin Group

A Virgin Atlantic spokesperson said: "In order to complete the private-only, solvent recapitalisation of the airline, our restructuring plan has gone through a court-sanctioned process under Part 26A of the UK Companies Act 2006, to secure approval from certain creditors before implementation.

"Today, Virgin Atlantic attended an English High Court hearing where the restructuring plan was formally sanctioned.

"A US procedural hearing will follow tomorrow, 3 September, ensuring the restructuring plan is recognised in the US, paving the way for completion of the £1.2 billion private only, solvent recapitalisation of Virgin Atlantic.

"Achieving this significant milestone puts Virgin Atlantic in a position to rebuild its balance sheet, restore customer confidence and welcome passengers back to the skies, safely, as soon as they are ready to travel."

More to follow...

Latest World News

See more Latest World News

Vladimir Putin

Putin warns West: Russia has ‘red line’ over Ukraine

The ISS

Space junk risk delays ISS maintenance mission

The two elephants

Vet calls for urgent medical care for elephants in Pakistan

The jet left the launch ramp and fell into the sea

Leaked footage shows moment F35 jet crashes into sea and pilot ejects from aircraft

Afghanistan

Taliban abduct and kill dozens of former officers – rights group

Kansai airport

Omicron variant ‘in Netherlands days earlier than previously thought’

Magdalena Andersson

Sweden’s first female prime minister announces government

Eric Zemmour

Far-right pundit to launch campaign for French presidency

2021 Gotham Awards – Winners Room

Maggie Gyllenhaal film wins four awards in Oscar season opener

Virus Outbreak Japan Daily Life

Japan confirms first case of Omicron variant

Prince Charles made a speech at the event and acknowledged Britain's role in the slave trade

Charles acknowledges 'appalling atrocity of slavery' as Barbados becomes a republic

Aung San Suu Kyi speaks to her supporters using a loud-hailer

Myanmar court postpones Aung San Suu Kyi verdict for new testimony

Actor Jussie Smollett looks back at his mother as they arrive with other family members to court

Defence argues Jussie Smollett is ‘a real victim’ of attack as trial begins

Ghislaine Maxwell is standing trial in New York.

Ghislaine Maxwell 'manipulated' and 'served up' girls for sexual abuse, court hears

Bill Cosby gesturing outside his home, after being released from prison (Matt Rourke/AP)

US Supreme Court asked to review overturning of Bill Cosby’s conviction

People wearing face masks to curb the spread of Covid-19 sit at a bus stop in Lisbon, Portugal (Ana Brigida/AP)

WHO says global risk from omicron variant is ‘very high’