Virgin Atlantic: Bidders ‘open talks’ over joint rescue bid

Two of the bidders for Virgin Atlantic have reportedly opened talks to submit a joint proposal to save the carrier.

Former Monarch owner Greybull Capital and US hedge fund Elliott could join forces as they compete with investors such as Davidson Kempner Capital Management, Sky News reported.

Virgin Atlantic is trying to secure a financial rescue package worth more than £500 million, with the end of June serving as an informal deadline for having an outline deal agreed.

The airline hopes to secure private investment alongside taxpayer support and drew up a revised proposal to government earlier this month.

US carrier Delta Air Lines, a 49% shareholder, would reportedly defer millions of pounds it is due to receive as part of a potential lifeline deal.

Virgin Atlantic plans to cut up to 3,150 jobs, has slashed costs with passenger services grounded and is to move services fro Gatwick to Heathrow.

Flights are due to resume from July 20, with initial services followed by a “steady increase” throughout the second half of the year.

Virgin Atlantic is burning through about £15 million a month against the £20 million a day losses reported by British Airways.

A Virgin Atlantic spokesperson said: “We continue to explore all available options to secure additional external funding as part of a comprehensive, solvent recapitalisation of the airline.

“Constructive negotiations with our shareholders, creditors and partners as well as private investors and HM Government are progressing at pace, so that Virgin Atlantic can emerge from the crisis sustainably profitable and with a healthy balance sheet.”

MoreMore than 3,000 jobs at risk in Virgin Atlantic restructure


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