Aircraft. Cash injection on air carrier Virgin Atlantic
468 million Euros to counter possible losses triggered by Omicron variant
The founder of British airline Virgin Atlantic, Richard Branson, has provided a cash injection of 468 million Euros to support the airline. The decision comes at a time when the outlook for the airline industry is becoming increasingly bleak due to government restrictions imposed to limit the spread of the Omicron variant of the coronavirus. In fact, this has begun to put a damper on the fragile recovery that had been going on in recent months.
"That has had an impact and I would say is materially dampening demand". It is hoped that the investment will be a "permanent solution" to the airline's financial problems, which is expected to reach profitability by 2023. "I'm reluctant to predict the future, but this initiative is designed to build the company's long-term success. We were doing quite well in recent months, especially after the opening of the US border". During the pandemic, shareholders gave "unwavering support" and so now "they won't have to fund Virgin Atlantic. This is a testimony that our story is strong". This was said by the CEO of the airline, Shai Weiss, in an interview with the British business newspaper "Financial Times".
The cash injection came from Virgin Group, which owns 51% of Virgin Atlantic, and the US carrier Delta Air Lines, which maintains a 49% stake in the British company. The investment will serve to buffer possible losses generated by the new restrictions. Just think that bookings of transatlantic flights alone have suffered a cut of 30-50% following the outbreak of the new variant.
AVIONEWS - World Aeronautical Press Agency