Coronavirus: Virgin Atlantic to cut 1150 more jobs

High Court in London backs Virgin Atlantic's rescue plan

High Court in London backs Virgin Atlantic's rescue plan

The deal had been approved by the High Court in London earlier this week, and was formally recognized by a USA court - the last step in the legal process in the long-haul carrier's efforts to rebuild its balance sheet and to emerge from the crisis.

Virgin Atlantic chief executive Shai Weiss said: "Together, we have achieved what many thought impossible and that is down to the efforts and sacrifices of so many across the company".

"Our reps are meeting with Virgin next week and I am hopeful that we will find a way through to avoid any further pilot redundancies", said Brian Strutton, BALPA General Secretary.

Virgin Altlantic (VS/VIR) is to cut 1,150 more jobs as its £1.2bn rescue plan gets approved.

The airline announced the refinancing package in July to ensure its survival after passenger numbers dropped 98% in the second quarter.

It includes almost $800 million of support from the airline's owners, Virgin Group and Delta Airlines, around $600 million of deferred payments to creditors and $225 million of financing from US -based Davidson Kempner Capital Management LP.

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The carrier had already cut more than 3,500 jobs out of the 10,000 employees it had before the coronavirus outbreak grounded fleets around the world.

Virgin Atlantic does not foresee a return to pre-crisis levels of flying until 2023.

Virgin Atlantic declined to comment on the Sky News report. "The airline is calling for both United Kingdom and USA governments to introduce robust passenger testing regimes to lift travel restrictions whilst protecting public health". Virgin Group owns the remaining shares.

The airline will announce the layoffs as soon as today, the report said, adding that the latest round of cuts, if confirmed, would mean that Virgin Atlantic's workforce has nearly halved from about 10,000 people before the coronavirus pandemic.

AgenciesTransatlantic flying is 70% of Virgin Atlantic's network, and the airline called on Britain to replace its policy of travellers having to quarantine for 14 days, with testing. That airline - which reportedly is planning to emerge from bankruptcy with cheaper fares - is expected to end many of its global flights.

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