Virgin airliner grounded
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The warning comes after many countries around the world closed borders or placed extra restrictions on arrivals. News reporter JournoKiwi. Virgin Atlantic staff will be asked to take eight weeks of unpaid leave over the next three months, to help the airline cope during the coronavirus pandemic. The airline is one of many to have brought in drastic measures to cope with a fall in passenger demand, due to global travel restrictions and the reluctance to travel due to the disease.
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Financially stressed airlines typically turn to their governments for a bailout first and then to their owners. Virgin Australia has appointed voluntary administrators to assess whether it can be saved by restructuring or should be sold to other investors. A voluntary administrator can be appointed to a company by directors quickly and simply in Australia by passing a resolution that the company is insolvent or likely to become insolvent soon. The Virgin board did this on Monday night and notified the stock market on Tuesday that full control of the airline had been handed to a Deloitte team. But whether airlines in other countries are given time to restructure while insolvent or are wound up to pay creditors depends on variations of national corporate laws. At least 10 unnamed potential buyers were quick to start talks with the administrators and have buoyed hopes that Virgin Australia will survive in a leaner form.
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The airline was established in as British Atlantic Airways , and was originally planned by its co-founders Randolph Fields and Alan Hellary to fly between London and the Falkland Islands. Soon after changing the name to Virgin Atlantic Airways, Fields sold his shares in the company after disagreements with Sir Richard Branson over the management of the company. It is administratively separate from other Virgin-branded airlines.
All of the latest news from Virgin Atlantic. If you make a new booking for travel up to 30 April , or if you are affected by a cancelled flight up until 31 August , you can make as many date changes as necessary with no service fee, all the way until 30 April Customers who booked up to and including 5 February retain the option to two free date changes and one free name change. Fare differences may apply.