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

The Travel Industry Hub creates online community

Are you sick of attending webinars where everyone leaves straight after they end, leaving no chance to network and chat? Well, TTIH is doing something about it.

Share

CommentComments

Aviation

Brisbane Airport achieves global COVID-safe accreditation

While the health and safety protocols at Brisbane’s quarantine hotels are being questioned, at least the airport’s got it together.

Share

CommentComments

Hotels

Nail-biting images emerge of youths taking selfies on Sydney hotel ledge

Bloody kids these days and their death-defying selfies. Back in our day, the cameras were so big that we’d be lucky to get one up a staircase, let alone onto the ledge of a building.

Share

CommentComments

Destinations

South Australia changes border restrictions for travellers from NSW

by Huntley Mitchell

Finding it hard to follow of all the constantly-changing domestic border restrictions? Travel Weekly has done some of the deciphering for you here.

Share

CommentComments

Cruise

Royal Caribbean extends cruise suspension, announces US$40m funding pool for agents

Despite what the headline suggests, the cruise group isn’t offering agents to take a dip in a literal pool of cash, much to our disappointment.

Share

CommentComments

Wholesalers

The Travel Corporation’s Aussie CEO to depart as part of major exec changes

Here’s some very big news right here for your Friday, with TTC’s Fiona Dalton set to fly the coop after just three months in the top role.

Share

CommentComments

Aviation

Indonesian socialite books out entire flight to Bali to avoid COVID-19

The grandson of a pharmaceutical tycoon reckons booking out an entire commercial flight is cheaper than chartering a private jet.

Share

CommentComments

Hotels

Opening date revealed for W Melbourne

Have you been waiting with bated breath for Marriott to reveal the opening date for its new Melbourne property? Well, you can now rid yourself of all that anxiety.

Share

CommentComments

Travel Agents

CTM boss in legal stoush with Brisbane City Council over $20 million property plan

Jamie Pherous has become entangled in a legal battle with the council over a swimming pool he wants to build at his new property on Brisbane River.

Share

CommentComments

Wholesalers

Get in quick! Trafalgar launches ‘Break Out & Break Free’ sale

It appears 2021 is the year of the sale, with Trafalgar joining the already long list of travel brands spruiking their discounted wares.

Share

CommentComments

Aviation

Unions take Qantas to High Court over JobKeeper “wage theft”

by Ali Coulton

Having lost on appeal in the Federal Court late last year, the unions are now taking their JobKeeper fight against Qantas to the High Court.

Share

CommentComments

Cruise

Carnival to ditch 19 ships, as company posts $2.8 billion quarterly loss

Carnival Corporation has added another ship to the pile of vessels that it will offload in order to stay afloat beyond the COVID-19 pandemic.

Share

CommentComments