Nick Ferrari 7am - 10am
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 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...