Virgin Atlantic Announces Bankruptcy as Sister Airline Slashes 3,000 Jobs

By Bob Johnson

Source MLive.com, Walker, Mich. (TNS)

Aug. 6, 2020

Virgin Atlantic announced it has filed bankruptcy as it scrambles to finalize a $1.5 billion plan to rescue its airline from the pandemic-related financial crisis.

The United Kingdom-based airline filed for Chapter 15 bankruptcy protection in New York on Tuesday, which shelters the U.S. assets of foreign companies undergoing restructuring proceedings in their home country, CNN Business reports.

On Wednesday, sister company Virgin Australia on Wednesday announced it was slashing 3,000 jobs under a new restructuring plana sweeping restructuring plan.

Virgin Australia also is discontinuing its low-cost carrier, Tigerair Australia.

Global air travel isn’t expected to fully recover from the coronavirus pandemic until 2024, according to the International Air Transport Association, which represents 290 airlines.

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