Virgin Atlantic cuts another 1,150 jobs despite £1.2billion rescue plan approval
VIRGIN Atlantic has today confirmed it will cut a further 1,150 jobs despite securing a £1.2billion rescue deal.
More than 3,000 roles were axed at the airline over the summer and it announced its base at Gatwick airport will close in the fallout from Covid-19, which grounded flights across the world.
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But now the airline has confirmed a further 1,150 jobs will be lost on top.
Shai Weiss, Virgin Atlantic's chief executive, said: “After the sacrifices so many of our people have made, further reducing the number of people we employ is heart-breaking but essential for survival.
"I truly hope that as demand returns, we will see many members of
our team returning to us."
It was thought a £1.2billion bailout of the travel company founded by Richard Branson would save thousands of jobs after it was approved by courts in the UK and the US, where Virgin Atlantic filed for bankruptcy protection in August.
Coronavirus job cuts in the travel industry
THE travel industry has been severely impacted by the coronavirus crisis. As fewer people head abroad, many airlines have announced plans to cut jobs to offset their profit losses.
- British Airways announced plans to cut around 12,000 members of staff. In addition, the airline wants to switch remaining workers onto lower paid contracts.
- Ryanair confirmed that up to 3,250 jobs could be slashed while staff face 20% pay cuts.
- TUI warned 8,000 jobs could go, which would amount to 30% of its entire workforce.
- easyJet announced plans to axe around 5,000 jobs. The airline is also shutting its bases at London Stansted, Southend and Newcastle Airport.
- Virgin Atlantic said it plans on cutting 3,150 jobs after owner Sir Richard Branson said the airline could fall into administration without a government bailout. It's also now thought a further 1,000 roles could go.
- Jet2 is making 102 pilots redundant after talks aimed at saving jobs failed.
- Flybe collapsed into administration on March 5. The airline had been losing money for several months but coronavirus was understood to have had a severe impact on bookings.
- Gatwick Airport said it will cut 600 jobs - around a quarter of its workforce - due to coronavirus.
At the bailout hearing the UK's High Court was told the pandemic-crippled airline would run out of money in weeks without support.
Commenting on the deal Mr Weiss said: "The completion of the private-
only, solvent recapitalisation of Virgin Atlantic removes much of the uncertainty we faced and represents a major step forward in our fight for survival.
"We greatly appreciate the support of our shareholders, creditors
and new private investors and together, we will ensure that the airline continues to provide vital connectivity and competition."
Virgin Atlantic returned to the skies in July but passenger numbers have plummeted compared to pre-Covid levels amid quarantine restrictions and continued uncertainty surrounding the virus.
Mr Weiss also today called on the government to introduce passenger testing to boost the number of people travelling and to help the airline survive.
He said: "It’s clear that the introduction of passenger testing is the only way to enable the removal of travel restrictions and open up flying to key markets, while protecting public health. We will continue to work with our industry partners to press for urgent government action."
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The travel industry has been hard hit with jobs also going at British Airways and Ryanair.
Gatwick has also announced plans to cut 600 jobs – almost a quarter of its workers due to coronavirus.
Costa Coffee yesterday announced plans to cut 1,650 jobs.