Virgin Atlantic Gets £160 Million in New Funding
Virgin Group will contribute around £100 million of new funding to Virgin Atlantic to help the carrier survive until mass travel restarts in the wake of the Covid-19 pandemic.
The loan from Virgin Group, which owns 51 percent of the airline, forms part of a £160 million support package that is close to being finalised, Virgin Atlantic confirmed. The deal also includes payment deferrals with creditors.
Like the rest of the aviation industry, Virgin Atlantic has been forced to ground large parts of its fleet as the disruption caused by the pandemic drags into a second year.
The carrier secured a £1.2 billion private sector rescue package last summer including £200 million of cash from Virgin Group and £170 million of debt funding from US hedge fund Davidson Kempner Capital Management.