Business News

Virgin Atlantic to cut another 1,150 jobs following £1.2 billion rescue plan

4th September 2020

Equivalent to around €1.3 billion, the rescue plan offers a lifeline to the aviation company for another 18 months.

Global Aviation group Virgin Atlantic announced it will be cutting an additional 1,150 jobs, after initially axing 3,500 of its 10,000 employees at the start of the pandemic.

The airline said it needs to cut costs to survive, after taking a massive hit due to grounding of its fleet and restrictions to air travel to curb the spread of coronavirus.

Virgin Group has been in talks over a rescue plan which has gained approval from the US and British courts this week. The £1.2bn, approximately €1.3 billion, involved £400m in new cash, half of which will come from Sir Richard Branson’s Virgin Group, which is the airline’s main shareholder.

“The outlook for transatlantic flying, which is core to Virgin Atlantic's business, remains uncertain with US-UK travel curtailed,” the Group said. “Until travel returns in greater numbers, survival is predicated on reducing costs further and continuing to preserve cash.”

The company added that the past six months had been “the most challenging in Virgin Atlantic's history”, and that “regrettably the airline must go further one last time with changes at scale, to ensure it emerges from this crisis”.


Martina Said - 9th September 2020

With decades of experience and expertise between them, four of KPMG’s Audit Directors – Thomas Galea...

4th September 2020

‘Fear gauge’ Vix index hit its highest since mid-July

3rd September 2020

The Malta Business Bureau and the European Commission Representation in Malta organized a webinar on...

3rd September 2020

For every €20 retail (blue) voucher spent, an average additional €16.42 was further spent

Virgin Atlantic to cut another 1,150 jobs following £1.2 billion rescue plan