Virgin Atlantic became another victim of COVID-19’s rampage through air travel, as it filed for bankruptcy protection today. Virgin, based in the U.K., filed for Chapter 15 protection despite asking for nearly $1.5 billion in assistance last month; the airline says it will run out of cash in September without an infusion. According to reports, the company will recapitalize over the next year and a half and continue to operate while in bankruptcy protection.
“With support already secured from the majority of stakeholders, it’s expected that the Restructuring Plan and recapitalisation will come into effect in September. We remain confident in the plan,” the airline said. Virgin Atlantic has already cut some 3,500 jobs since the collapse of air travel this spring and summer.