Fri. Oct 22nd, 2021

Virgin AtlanticMove is airline companys attempt to shore up balance sheet after ₤ 659m loss due to Covid pandemicThe British airline Virgin Atlantic is considering raising funds on the London Stock Exchange in an attempt to shore up its balance sheet.The listing, which is anticipated to be revealed in the fall, is most likely to see the billionaire Sir Richard Branson give up overall control of the business. His Virgin Group presently owns 51% of the airline company with the US-based Delta Air Lines owning the rest.Like most airline companies around the world, the company has actually been hammered by the Covid-19 pandemic. The airline companys position was seen as one of the most precarious of the big airline companies running out of the UK, as it had rarely turned a revenue in recent years.The listing, first reported by Sky News, may show a tricky gambit as the share prices of airline companies such British Airways-owner IAG and easyJet remain significantly down on pre-Covid levels.

Virgin AtlanticMove is airlines effort to shore up balance sheet after ₤ 659m loss due to Covid pandemicThe British airline Virgin Atlantic is thinking about raising funds on the London Stock Exchange in an attempt to shore up its balance sheet.The listing, which is expected to be announced in the autumn, is most likely to see the billionaire Sir Richard Branson give up total control of the organization. His Virgin Group presently owns 51% of the airline with the US-based Delta Air Lines owning the rest.Like most airlines around the world, the company has actually been hammered by the Covid-19 pandemic. The group also cut costs, shedding 41% of its workforce and retiring some older aircraft early.That came after a ₤ 1.2 bn rescue deal last summertime, including ₤ 170m in loans from the Davidson Kempner hedge fund, to keep the organization going after months without scheduled flights.Branson, who established the airline in 1984, injected ₤ 200m of his own cash, raised through selling off a stake in the space division Virgin Galactic, while Virgin Group and Delta postponed payments amounting to about ₤ 400m from their transatlantic joint venture.At the time, the group said it hoped to return to benefit in 2022. The airlines position was seen as one of the most precarious of the huge airline companies running out of the UK, as it had rarely turned a revenue in recent years.The listing, first reported by Sky News, might show a tricky gambit as the share rates of airlines such British Airways-owner IAG and easyJet remain significantly down on pre-Covid levels. With global travel restrictions still in location in numerous countries due the pandemic financiers remain concerned about how long it will take the market to recover.A key problem for Virgin Atlantic is that the US still has a travel restriction in place for the vast majority of British nationals and has advised its own population to remain at home.There is also prospective for it to lose consumers to a new inexpensive competitor as JetBlue plans to launch flights to New York this month.However, Sky reported that Virgin Atlantics advisers, including Citi and Barclays, have been approaching major financiers about a possible flotation in current weeks and the finance groups had actually responded positively to the idea.Virgin Atlantic stated it would not comment on the speculation.

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