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Virgin Atlantic set for further £160m cash boost
Virgin Atlantic is set to further bolster its balance sheet to guard against the ongoing impacts of the coronavirus crisis.
A spokesperson for the carrier confirmed it was in the process of finalising a new £160 million refinancing package, the BBC reports.
Confirmation followed other national press reports stating the airline was seeking additional cash to support the business while Brits remain unable to travel.
The money will comprise loans from existing shareholders, including Richard Branson’s Virgin Group and US carrier Delta Air Lines.
“We continue to bolster our balance sheet in anticipation of the lifting of international travel restrictions during the second quarter of 2021,” said a Virgin spokesperson.
“This latest £160 million financing provides further resilience against a slower revenue recovery in 2021 and follows a $230 million (£165 million) financing on two Boeing 787s in January, which allowed us to pay down debt and strengthen our cash position.
“We remain confident Virgin Atlantic will emerge a sustainably profitable airline and would like to thank our creditors and shareholders, Virgin Group and Delta, for their ongoing support and unwavering belief in our future.”
Virgin’s £1.2 billion restructuring plan was cleared by the high court last September, but came at the cost of a further 1,150 roles – on top of more than 3,000 cut earlier in the pandemic.
Its winter schedule has been reduced owing to demand and Covid travel restrictions, with the airline initially focusing on Caribbean winter sun departures.
It said the sale and leaseback of two Boeing 787 Dreamliner aircraft in January would allow it to pay down debt and boost its cash position heading into 2021.
There was, however, a boost for Virgin last week, with Delta chief executive Ed Bastian pledging to "stand by" the group’s partner airlines, which include Virgin, during an address at ITB Berlin.
James Chapple
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