Virgin Atlantic Files for Bankruptcy Protection in New York But Plans For Space Go Ahead
Billionaire Richard Branson's Virgin Atlantic has become the second airline to file for bankruptcy this year as the industry continues to feel the effects of coronavirus pandemic.
The Virgin Group airline filed for Chapter 15 bankruptcy in New York on Tuesday, marking the latest business casualty for the airline industry. This follows Branson's previous demands for $500million from the Australian government in April this year to save the Australian arm of the Virgin group airline as the billionaire felt that taxpayers should prop-up his business and not shareholders. The Billionaires viral pleas for the money from his private island failed to convince the Australian government and Virgin Australia filed for voluntary administration in April.
A Virgin Atlantic spokesperson said that the company was pursuing a 'solvent restructuring' under British law. The filing means the airline is not yet going into liquidation or going out of business -- but the company warned that if a deal with creditors isn't reached, it could run out of cash by September.
Seemingly not worried about the inevitable staff job losses from this Branson yesterday announced he intends to launch into space aboard his Virgin Galactic aircraft as its first passenger early next year.