British Airways rival Virgin Atlantic is hoping to leave the turbulence behind after sealing a funding deal with Virgin Group and Delta Airline to inject £400m in fresh cash to steer it out of the pandemic.
Virgin Atlantic, like many other airlines, has been battered by the Covid tracvel restrictions and the clisure of many of its long-haul destinations.
The funding will be split along the lines of ownership in the airline, with £204m coming from Virgin Group and £196mstumped up by Delta Air Lines.
Shai Weiss, CEO Virgin Atlantic, said: “Our story has been well documented during the pandemic. Together with our people, we have proven that we have what it takes to emerge a stronger airline. Throughout, our shareholders Virgin Group and Delta Air Lines, and our creditors, have been a source of unwavering support.”
The airline executive said the new funding would help the company take advantage of the reopening of leisure travel between the UK and USA.
Despite the hurdle of ever-changing restrictions and rules for crossing borders, Virgin last month launched a new route between London Heathrow and the Bahamas.
The airline was among those that wrote to the UK Government calling on it to reduce currrent travel restrictions, which have knee-capped the industry and reduced international travel for nearly two years.
In September last year the carrier won creditor and High Court approval for a £1.2bn rescue package. It also slashed spending on new aircraft by £800m and reduced its workforce by 45 per cent.
Earlier this year it again topped up its bank balance with a further £300m in financing.