Virgin Atlantic has just filed for Chapter 15 Bankruptcy in New York
While other airlines such as LATAM, Avianca, and Aeromexico filed for Chapter 11 Bankruptcy, Virgin Atlantic has chosen a slightly different path with Chapter 15, which allows the U.S. and U.K. to cooperate and protects Virgin Atlantic’s assets.
Virgin Atlantic recently resumed flying on July 20 with flights to Hong Kong and Los Angeles/New York the day after.
Virgin Atlantic is in the process of approving a £1.2 billion rescue package. Meetings to discuss and hopefully approve this plan will take place on August 25.
Also just pointing this out:
Delta Air Lines:
- Joint Venture partner Virgin Australia - Entered Administration
- 20% stake in LATAM - Chapter 11 Bankruptcy
- 49% stake in Aeromexico - Chapter 11 Bankruptcy
- 49% stake in Virgin Atlantic - Chapter 15 Bankruptcy.
For now, the airline will likely continue normal operations, similar to other airlines that have recently filed for bankruptcy reorganization.
Hopefully this will allow Virgin Atlantic to restructure and emerge stronger.