Virgin Atlantic has received a new £400 million investment from shareholders, Virgin Group and Delta Air Lines. In a separate press release, Air Lease Corporation (ALC) has announced the placement of two Airbus A350-1000s with the carrier.
On Monday (December 13, 2021), Virgin Atlantic announced a new £400 million investment from shareholders, Virgin Group (51%) and Delta Air lines (49%). The added liquidity will position the company to emerge from the pandemic with a stronger financial position and bolstered balance sheet. Virgin Atlantic expects to return to sustainable profitability from 2023, driven by a recovery in air travel demand and over £300 million in cost savings, which has already been delivered. Creditors will continue to support the airline with a £200 million reduction in cash burden through 2024. Additionally, Virgin Atlantic has fully financed their aircraft deliveries through Q2 2024, and is on track to reach a fleet of 100 percent next generation aircraft by 2027.
In Monday’s announcement, Virgin Atlantic’s CEO, Shai Weiss, said,
“Our story has been well documented during the pandemic. Together with our people, we have proven that we have what it takes to emerge a stronger airline. Throughout, our shareholders Virgin Group and Delta Air Lines, and our creditors, have been a source of unwavering support. As our customers look to travel again to reconnect with their families, loved ones and business colleagues around the world, we look forward to working together towards our vision of becoming the most loved travel company and becoming sustainably profitable, serving our customers with Virgin flair for the next 37 years and beyond.”
Delta Air Lines’ CEO, Ed Bastian, added,
“Virgin Atlantic’s business has transformed, allowing them to emerge from the pandemic a stronger airline. Their distinct and vibrant brand will be reconnecting and delighting its customers for years to come. Together, more customers will be able to take advantage of the many benefits our strategic partnership offers, including a route network serving more than 350 cities in North America, Europe and the UK.”
Also commenting on the additional investment in Virgin Atlantic, Virgin Group’s CEO, John Bayliss, said,
“Since 1984, Virgin Atlantic has been a cornerstone of the Virgin brand, flying millions of customers and providing essential competition. We are extremely grateful to the Virgin Atlantic team for its incredible tenacity and commitment skillfully navigating the worst crisis ever to hit the travel industry. With the addition of new routes and a continuing focus on operating a cleaner, greener fleet, there is much to look forward to.”
In a separate press release on Tuesday (December 14, 2021), Air Lease Corporation announced the placement of two Airbus A350-1000s on lease with with Virgin Atlantic. The new aircraft are scheduled for delivery to the carrier in 2023 and 2024 from ALC’s orderbook with Airbus.
In today’s announcement. Air Lease Corporation’s Executive Chairman, Steven F. Udvar-Házy, said,
“We are pleased to announce this placement of two new Airbus A350-1000s with Virgin Atlantic. ALC’s long history with the airline has been focused on fleet transformation and modernization, and these two new aircraft will add to Virgin Atlantic’s growing A350 operations and commitment to sustainable travel.”
Based in Los Angeles, California, Air Lease Corporation (NYSE: AL) is a leading global aircraft leasing company. The ALC team is principally involved in the purchase of commercial aircraft and leasing them to airlines worldwide with customized leasing and financing solutions.
Source(s): Virgin Atlantic, Air Lease Corporation