Sky News is reporting British airline Virgin Atlantic has hired Alvarez & Marsal to advise on a potential administration, while it battles to secure a government bailout.
Virgin Atlantic remains in talks with the British Government concerning a bailout, talks have been ongoing for weeks and this is Virgin’s second bailout proposal to the government, after the first lacked credible key information and, ministers asked Virgin to resubmit proposals. We understand Houlihan Lokey are approaching investment funds including Apollo Global Management, Cemtrebridge and Cerberus Capital Management.
Virgin Atlantic conformed in a statement,
“Because of significant costs to our business caused by unprecedented market conditions which the Covid-19 crisis has brought with it, we are exploring all available options to obtain additional external funding’”
“Discussions with a number of stakeholders continue and are constructive, meanwhile the airline remains in a stable position,”
Like all airlines around the world, Virgin Atlantic has felt the tough market conditions the Coronavirus pandemic has brought. In a matter of weeks we’ve witnessed Virgin operate cargo-only flights, retire their Airbus A330 and Boeing 747 aircraft. Virgin intended to retire their Boeing 747 fleet in 2021, however, the coronavirus has seen these iconic aircraft retire early.
The Virgin Atlantic story began at London Gatwick Airport in 1984 when the inaugural flight VS1 departed for Newark, United States of America. The VS1 was operated by a Boeing 747 nicknamed Maiden Voyage and became the airlines home before it began expanding at London Heathrow. The coronavirus has seen Virgin Atlantic terminate its iconic VS1 Newark service and pullout of London Gatwick, with operations only remaining at London Heathrow and Manchester.
Earlier this week Virgin Atlantic announced over 3,000 redundancies as it tries everything to survive. Sky News is reporting, tomorrow ministers and airlines are scheduled to hold a discussion by phone concerning the impact.
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