By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Reading: Virgin Atlantic files for bankruptcy in the US
Share
Sign In
Notification Show More
Font ResizerAa
Font ResizerAa
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Signin Sign In
Follow US
Copyright © Travel Radar Media Ltd. 2025 | All Rights Reserved
Travel Radar - Aviation News > News > Virgin Atlantic files for bankruptcy in the US

Virgin Atlantic files for bankruptcy in the US

Luke Willmoth
Last updated: 5 August 2020 20:58
By Luke Will
3 Min Read
Share
SHARE

Breaking news has come in within the last few minutes, that London based carrier, Virgin Atlantic filed for Chapter 15 bankruptcy in New York this evening (Tuesday 4 August 2020), becoming the second Virgin Group airline to fall into bankruptcy- following Virgin Australia filing for voluntary administration in April.

It is the second Virgin Group carrier to collapse following Virgin Australia filing for administration in July | (c) Skift

A carrier in trouble…

Despite reducing staff numbers and aircraft flying, the carrier has suffered significantly due to the Coronavirus Pandemic. The airline announced a £1.2bn rescue package in July 2020 though has yet to finalise talks. The airline’s venture for private investment follows refusal of a government bailout from the United Kingdom, despite Virgin Group Founder, Richard Branson, offering his private island as collateral for a loan/bailout.

What is a Chapter 15 Bankruptcy?

Chapter 15 is a form of bankruptcy designed for cases that involve multiple countries. It provides a mechanism for foreign-based companies undergoing bankruptcy proceedings in their own country to access the US court system. It effectively protects Virgin’s US assets from creditors as a UK court oversees claims. US-based Delta Airlines own a 49% stake in the carrier, though have refused to offer a cash injection to save the carrier going under.

Under a Chapter 15 Bankruptcy, the carrier is not suspended nor has it entered administration in the UK, though a statement released earlier last month confirmed that “without a rescue package” the carrier would “run out of cash next month” (End of August 2020) If the carrier is able to secure a rescue package by the end of the month, it is likely total collapse can be averted.

“One of the most important goals of Chapter 15 is to promote cooperation and communication between US courts and parties of interest with foreign courts and parties of interest in cross-border cases,”

We will continue updating this article as more information becomes avaliable.

You Might Also Like

Lufthansa Technik expands partnership with IndiGo for lease return service
Ukraine Crisis Live: Airports Close As Air Raid Sirens Heard
United Airlines to Recieve Additional 777-300ER Aircraft from This Year
Auto Brake Fail for Air Canada A320
Hawaiian Airlines is Giving Away 10 million HawaiianMiles
Share This Article
Facebook Twitter Email Copy Link
What’s your thoughts?
Love0
Sad0
Happy0
Angry0
Luke Willmoth
ByLuke Will
Follow:
Chief Executive Officer - Luke founded Travel Radar in 2015, transforming it from a passion project into a leading independent media publication. With a vision for storytelling and innovation, he continues to shape its success in the travel industry.
Previous Article Back in the Air BA flight to Verona Flying in the New Normal I: British Airways Short-Haul
Next Article PIA Sacks 63 ‘Pilots’ Over Fake License Scandal
Subscribe
Login
Notify of
guest
guest
0 Comments
Oldest
Newest Upvoted
Inline Feedbacks
View all comments

Stay Connected

FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe

Trending News

Cathay congratulates the Belt and Road Summit on its 10th anniversary
10th Belt and Road Summit, Cathay Congratulates the Hong Kong Government
Airshow & Events Aviation Travel
IndiGo cargo
IndiGo expands its network to Purnea, its 94th domestic destination
Aviation Route Development
Lufthansa Technik's 100th LEAP engine Induction
Lufthansa Technik celebrates its 100th CFM LEAP engine induction
Aviation Manufacturing
Aerial View of Coastal Town with Lush Greenery in Dominica
Soaring Above the Rest: Why Aviation-Minded Investors Choose Dominica’s Citizenship by Investment Program
Aviation Travel
Work is already underway at Doncaster Sheffield Airport
Doncaster Sheffield Airport set to reopen following £160m funding grant
Airports
//

Travel Radar is the leading digital hub for all things aviation and air-travel. Discover our latest aviation news, aviation data, insight and analysis.

Discover

  • Latest News
  • Subscribe
  • Weekly Digest
  • Contact Us
  • Privacy Policy
  • About Us
  • Advertising
  • Media Coverage
  • Press & Events
  • Join Our Team
  • Our Brands

Signup to our Newsletter!

And get the latest aviation news via our weekly news digest!

© Travel Radar Media Ltd. 2015-2025 | ISSN #2635-0696 | Trademark #UK00003579704
wpDiscuz
adbanner
Welcome to the TR Community!

Sign in to your account

Not a member? Sign Up