Virgin Atlantic circles further GBP160m Covid support package

Sir Richard Branson’s Virgin Group is set to pour GBP100m of new funding into Virgin Atlantic to help the carrier survive until mass travel restarts as the Covid-19 pandemic abates. The loan from Virgin Group, which owns 51%t of the airline, forms part of a GBP160m support package that is close to being finalised, Virgin Atlantic confirmed. The deal also includes payment deferrals with the company’s creditors. “We continue to bolster our balance sheet in anticipation of the lifting of international travel restrictions during the second quarter of 2021,” the airline said. The GBP160m financing will provide “further resilience against a slower revenue recovery” this year, it added. Even with leisure flying grounded, Virgin has managed to eke out revenue this year from the heavy demand for cargo flights, including sending its heavy jets on the short hop between the UK and Brussels. The airline is also still operating some passenger flights, and has reported strong demand from the south Asian diaspora in the UK travelling to see friends and relatives in India and Pakistan.<br/>