Today, is more sobering news to come out in the aviation industry. Richard Branson's Virgin Atlantic recently filed for Chapter 15 bankruptcy in the wake of the COVID-19 Pandemic. However the airline stated that while they are not technically bankrupt, they are hoping that they can continue to operate through restructuring. If they can't restructure by the end of September, they might have to shut down operations.
This isn't the first airline from Richard Branson's Virgin Group to go into bankruptcy though. Earlier in April, Virgin Australia filed for voluntary administration, which is a form of bankruptcy in Australia.
While Richard Branson owns 51% of the airline, Delta has a 49% stake in the airline as well in order to expand their international network. Virgin Atlantic recently started flying again in July after suspending flights in April in response to COVID-19. However most of Virgin Atlantic's recent financial problems actually supersede the virus. In 2018, the airline nearly lost $75 million of their $3 billion revenue that year and had to negotiate a $1.6 billion refinancing deal with investors and creditors. As a result, Branson wanted to sell some if not all of his stake in the troubling airline and even pleaded a bailout from the British Government. As for Delta however, CEO Ed Bastian recently said that Delta won't offer an injection of cash to save Virgin.
Virgin Atlantic's bankruptcy is the latest in the airline industry that could have potential consequences for the UK aviation industry and the world if the company goes under. Be sure stay up to date with the latest in breaking aviation news through the site as well as my social media channels (Twitter, Instagram, and Facebook) and keep looking to the sky!
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