Aviation

Virgin Atlantic files for bankruptcy protection

While the future of Virgin Australia appears to be sorted, unfortunately the same can’t be said for Virgin Atlantic.

The UK-based airline is seeking protection from creditors under chapter 15 of the US bankruptcy code, according to Bloomberg, after telling a London court it would run out of money next month if a rescue deal didn’t come through.

The filing, which was submitted in the US bankruptcy court in the Southern District of New York, gives the airline’s US assets protection while it finalizes a rescue plan involving a 1.2 billion pound rescue.

A majority of the airline’s stakeholders have indicated they support the plan.

Virgin Atlantic said in a court filing that reservations are down 89 per cent from a year ago.

The airline only flies long-haul international flights and has had its services suspended since April due to COVID-19 restrictions.

“The process we have asked to be recognized is a solvent restructuring of an English company,” a Virgin Atlantic spokesperson told Bloomberg.

According to The Guardian, the airline said it needed to recapitalise not only to survive the threats posed by COVID-19, but to allow it to get back on its feet once the global health crisis eases.

Travel Weekly has contacted Virgin Atlantic for comment.

The news comes after Virgin Australia Group revealed yesterday it would cut thousands of jobs and axe the Tigerair brand once the company emerges from administration under new ownership.

The second meeting of Virgin Australia creditors is due to take place on 26 August, where they will vote on Bain Capital’s proposed deed of company arrangement.

While it’s expected that the private equity firm will become the new owner of Virgin, bondholders may end up tabling an alternative DOCA proposal to creditors, with the Federal Court recently ruling that they are well within their right to make a play for the beleaguered airline.

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Tourism

Federal govt announces “most significant” insolvency reforms in 30 years to help save struggling small businesses

Is your business on its last legs? Find some relief in this major announcement by the federal government.

Share

CommentComments

Hotels

Crystalbrook to take over boutique Brisbane hotel

The independent hospitality company has gone all arty-farty in expanding its east coast footprint.

Share

CommentComments

Cruise

WATCH: Dream Cruises produces delightfully cringeworthy safety video

Dream Cruises has taken a leaf out of the airline playbook by turning its safety instructions into a fun video. It’s overly cheesy, but kinda cute.

Share

CommentComments

Travel Agents

MTA agent wins coveted spot on Dutch famil

With the famil stopping in Amsterdam along the way, you’d hope this agent will remember to pack some extra-clear eye drops and plenty of snacks.

Share

CommentComments

Wholesalers

Collette releases 2021/22 travel guide with seven new tours

Tell your clients to get ready to gorge themselves on arancini and caponata because three of the seven new trips involve the jewel of the Italian south: Sicily!

Share

CommentComments

Aviation

Qantas scraps Wallabies sponsorship, makes nearly $1m selling fully-stocked bar carts

We’ve mixed the good news with the bad here in this Qantas story, so get ready to smile and frown.

Share

CommentComments

Hotels

Hotel Wrap: Crowne Plazas ready to return, W Brisbane’s Extreme WOW Suite + MORE

This week’s Hotel Wrap is so huge that we’ve nicknamed it ‘Goliath’. However, that’s not to suggest you should start slingshotting stones at it if your name is David.

Share

CommentComments

Cruise

Norwegian co-founder and cruise titan Knut Kloster dies

Kloster was not only a titan of the cruise industry, but also a humanitarian and environmentalist.

Share

CommentComments

Travel Agents

Flight Centre fills Infinity Holidays void, opening up The Travel Junction to all agents

As part of its plan to streamline its product support areas, Flight Centre will use TTJ to service Infinity’s old clients, plus some cheeky new ones.

Share

CommentComments

Aviation

Qantas workers likely to receive thousands in unpaid wages after airline loses JobKeeper court case

The Flying Kangaroo’s cost-saving targets just became a little harder to hit after this court decision.

Share

CommentComments

Destinations

These are the world’s most complained about attractions

All up, people have spent more than 17 days complaining about the landmark that made the top of this list. That’s a lot of negative Nancies.

Share

CommentComments

Wholesalers

TTC commits to new sustainability goals, plans to be carbon-neutral by 2030

Meanwhile, we’re reducing our carbon footprint by strapping a tiny solar panel to our office dog. We’re not sure what’s it’s powering, but he looks very cute.

Share

CommentComments