Mexican low-cost carrier Volaris has won shareholder approval to raise up to Ps3.5b ($164m) in capital. The airline says it is “evaluating different financing alternatives” after shareholders approved the plan at an extraordinary general meeting on 18 September. Options under consideration are a rights offering, the outright sale of shares and the issuance of debt/convertible debentures in Mexico, the USA and other countries. “The company’s goal is to obtain the most cost-effective financing structure that delivers both strength to our balance sheet and reaffirms our long-term commitment to employees and shareholders,” adds Volaris, which views the Covid-19 crisis as “an opportunity to ramp up more quickly and strengthen its competitive position”. The Mexico City-based carrier will determine the terms and conditions of the capital increase “based on the prevailing market conditions at the time of such offering”.<br/>
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Virgin’s relationship with unions appears to have broken down after eight organisations joined together to issue a strongly-worded rebuke of the airline’s new owner Bain. The unions, including the TWU and AFAP, said they were “concerned over the direction Virgin is taking” and appeared to suggest they are worried more staff cuts are coming because not enough aircraft are ready to fly. “The workforce won’t tolerate their working conditions being cut to the bone permanently because of a temporary crisis,” read the letter. “Workers stand ready to negotiate co-operatively but they will not accept a coarse plan to drive down labour, safety and service standards in the medium to long-term.” Bain beat out Cyrus Capital Partners in May to become the administrator’s preferred bidder for the airline and the decision was then rubber-stamped at a final creditors’ meeting on 4 September. The unions’ letter, sent on Tuesday, comes just a day before they will take their seat on a new advisory council along with Bain, which has been set up to give employees more of a voice on the running on the business.<br/>
Expanding Central European carrier Wizz AIr has been forced to put plans to launch its first Russian base on hold as a result of fresh travel restrictions. In June Wizz announced plans to this month open a base at St Petersburg’s Pulkovo airport, one of a series new base announcements it has made since the initial round of Covid-related border restrictions were lifted. Wizz had planned to mark the new base by opening five new routes - connections to the Italian airports of Bergamo airport near Milan and Venice Treviso, as well as Copenhagen, Malta and Salzburg. But a statement from the airline on the airport’s website says it has postponed the launch of its base as a result of travel restrictions. It has postponed the launch of the five new routes until 3 December. The carrier also in December plans to add flights from St Petersburg to two more Italian cities - Bologna and Turin - and the Scandinavian capitals of Oslo and Stockholm.<br/>