Virgin Atlantic files for bankruptcy in the US

Author
Newstalk ZB / CNN,
Publish Date
Wed, 5 Aug 2020, 5:01PM
(Photo / File)

Virgin Atlantic files for bankruptcy in the US

Author
Newstalk ZB / CNN,
Publish Date
Wed, 5 Aug 2020, 5:01PM

Virgin Atlantic has filed for bankruptcy in the United States as the global airline industry reels from the coronavirus pandemic.

The company, which is based in the United Kingdom, filed for Chapter 15 bankruptcy protection in New York on Tuesday.

Virgin Atlantic hasn't been immune from the airline industry's pandemic problems. In July, the company received a £1.2 billion rescue deal to keep the airline solvent just days before it was due to resume passenger flights.

The carrier said that the recapitalization plan would be deployed over 18 months and has the support of shareholders, new investors and existing creditors.

Virgin Atlantic could not be reached immediately for comment Tuesday evening.

Global air travel isn't expected to fully recover from the downturn until 2024, according to the International Air Transport Association, which represents 290 airlines. The group blamed the sluggish recovery on several factors, including a lack of consumer confidence, the decline in business travel, and fresh coronavirus spikes in the United States and elsewhere.

text by Rob McLean, CNN Business