October 28, 2020

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Virgin Atlantic clears final hurdle in bulkbailout package

Virgin Atlantic clears final hurdle in bulkbailout package

The two payment processors Virgin Atlantic is negotiating with Cardnet and First Data. Without the consent of both financial institutions, Virgin Atlantic’s refinancing could still be at risk, although insiders say they expect the deal to be signed within days.

As a result, Virgin Atlantic’s refinancing was entirely from the private sector. Richard Branson’s company has repeatedly approached the British government in recent months to obtain state aid, but it was unwilling to help. That’s why the company started looking for other ways to get money.

How Branson pumps 220 million euros Millions of euros will be released through agreements with the two largest shareholders Virgin Group and Delta Air Lines. In addition, Virgin Atlantic entered into an agreement with the aircraft manufacturer Airbus to delay aircraft deliveries and payments and to Private investors Invest money in the company.

To cut costs, the airline, which only operates long-haul flights to and from the UK, announced in May that it would lay off 3,150 staff, representing almost a third of its total workforce. All Boeing 747s are also retiring early and the base at London Gatwick has been closed.

The British airline resumes flights from London’s Heathrow base to New York JFK, Los Angeles, Orlando, Hong Kong and Shanghai on July 20. As of August, 17 cities will be added, including Tel Aviv, Miami, Lago and San Francisco.