Virgin Atlantic plans 1,150 more job cuts despite approval of a private-only $1.6 billion rescue plan. The latest job cuts add to the already 3500 job losses reported during the coronavirus pandemic.
Reuters reports that the airline will shed almost by 50 percent its pre-pandemic workforce of around 10,000.
The pandemic led social distancing measures that saw airlines ground their flights for about seven months now. A slump in air travel has hurt revenues with many airlines struggling to stay afloat with sluggish demand as countries gradually reopen their airspaces.
Virgin says that it will engage with trade unions and Britain pilot associations on the restructuring process within the next 45 days. The government-backed scheme ends in October and the airline says it will need to cut down on crew redundancies.
Virgin had earlier warned that it risked running out of cash by end of September without the approval of the rescue plan. In August, the airline filed for Chapter 15 bankruptcy, a move that sought to protect its assets from US creditors as it scrambled to finalize a rescue plan with the aid of the UK court system.
Virgins woes have been compounded by the longer than expected travel restrictions on British nationals travelling to the United States. Reuters says that the transatlantic flights account for 70 per cent of Virgin Atlantic’s network thus dampening the airline’s outlook.
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