London-based airline Virgin Atlantic filed for Chapter 15 bankruptcy protection in the U.S. The action follows a restructuring plan that the company announced last month.
Following the voluntary administration that sister company Virgin Australia entered in April 2020, Virgin Atlantic has now become the second flagship of the group to face a court-backed process.
Its solvent recapitalization, referred to as ‘the Restructuring Plan’ in the company’s July 14 press release, is a five-year business plan aimed to restore the airline’s profitability beginning in 2022.
This action follows the airline’s decision made in May 2020 to make adjustments for the retention of profitability. The decision included a reduction of 3,550 employees across all functions.
Chapter 15 is a section…