Virgin Group will contribute round £100 million of recent funding to Virgin Atlantic to assist the service survive till mass journey restarts within the wake of the Covid-19 pandemic.
The mortgage from Virgin Group, which owns 51 per cent of the airline, varieties a part of a £160 million assist bundle that’s near being finalised, Virgin Atlantic confirmed.
The deal additionally contains fee deferrals with collectors.
A Virgin Atlantic spokesperson stated: “We proceed to bolster our steadiness sheet in anticipation of the lifting of worldwide journey restrictions through the second quarter of 2021.
“This newest £160 million financing gives additional resilience towards a slower income restoration in 2021 and follows a $230 million financing on two Boeing 787s in January, which allowed us to pay down debt and strengthen our money place.
“We stay assured that Virgin Atlantic will emerge a sustainably worthwhile airline and want to thank our collectors and shareholders, Virgin Group and Delta, for his or her ongoing assist and unwavering perception in our future.”
Like the remainder of the aviation trade, Virgin Atlantic has been compelled to floor giant components of its fleet because the disruption attributable to the pandemic drags right into a second 12 months.
The service secured a £1.2 billion personal sector rescue bundle final summer season together with £200 million of money from Virgin Group and £170 million of debt funding from US hedge fund Davidson Kempner Capital Administration.
