In today’s topsy-turvy airline world, it’s hard to keep the good news and the bad from colliding in the news.
That’s certainly true lately for Virgin Atlantic, which got a last-minute reprieve after warning that it would “run out of money altogether” by the end of September at the same time it is announcing a generous package of passenger insurance against coronavirus.
Virgin’s financial woes have grown during the long pandemic period because the bulk of its revenues come from trans-Atlantic routes. The Richard Branson-founded airline has negotiated a £1.2 billion bailout package, which has now been approved by 170 creditors, who will be required to take a 20% reduction in what they are owed. The airline is owned 51% by Branson’s Virgin Group and 49% by Delta.
In the meantime the airline is hoping to build up some business by reassuring passengers that they won’t be stranded, and that if they contract the disease they will be covered by a policy providing up to £500,000 for anyone who contracts the disease while on a trip, plus up to £3,000 if they are denied boarding or forced to quarantine while on a trip or on return home.
