Business

Virgin Atlantic to raise 160 million pounds

14 Mar 2021

Virgin cut costs by 335 million pounds last year. File

Gulf Today Report

British airline Virgin Atlantic which is among the numerous sectors that have been affected by COVID-19 pandemic is set to raise 160 million pounds ($222.75 million), according to a spokesperson.

The decision comes after the airline completed the sale and leaseback of two Boeing 787s in January.

It is part of its plan to strengthen its balance sheet following the effect of the pandemic.

"We continue to bolster our balance sheet in anticipation of the lifting of international travel restrictions during the second quarter of 2021", the spokeswoman said.

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The deal with Griffin Global Asset Management to raise just over $230 million from the two planes was meant to enable Virgin Atlantic to repay a loan taken on as part of its rescue deal last year.

In November, the company said that its 1.2 billion pound rescue deal secured two months prior meant that the airline can survive even if the travel situation were to worsen.

Virgin cut costs by 335 million pounds last year, CEO Shai Weiss told an airline industry event in November. It had also announced 4,650 job losses during the pandemic, halving its workforce, and shrank its fleet.

Reuters