Covid-19 continues to sink airlines around the world 3:03
(CNN Business) –– Virgin Atlantic filed for bankruptcy in the United States, as the airline industry falters amid the coronavirus pandemic.
The company, based in Great Britain, filed Tuesday in New York for the bankruptcy protection established in US Chapter 15.
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Virgin Atlantic has not been immune to the problems facing the airline industry due to the covid-19 crisis. In July, the company received a bailout agreement of 1.2 billion pounds ($ 1.5 billion) to maintain its solvency a few days before passenger flights resumed.
The airline said the recapitalization plan would run for 18 months, and that it has the support of existing shareholders, new investors and creditors.
Virgin Atlantic could not immediately be reached for comment on Tuesday night.
Airlines ask for test plan to fly to Europe 1:45Global air travel is projected to not fully recover from the recession until 2024, according to the International Air Transport Association, which represents 290 airlines. The group blamed several factors on the slow recovery, including lack of consumer confidence, declining business travel, and new spikes in the coronavirus in the United States and elsewhere.
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Hanna Ziady contributed to this report.
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