VIRGIN Atlantic Airways is set to announce a £1.2bn rescue package which would save thousands of jobs.
It is reported that Sir Richard Branson’s airline has secured backing from financial stakeholders in a bid to rescue the business in light of the coronavirus pandemic.
The announcement is expected to be made this afternoon.
The company is expected to be the first to use a new process introduced within government reforms which makes it easier for big companies to restructure.
It is reported that Sir Branson’s Virgin Group will inject £200m, hedge fund Davidson Kempner will loan £170m and two shareholders will defer £400m of fees.
If successful, the deal would remove the risk of Virgin Atlantic collapsing into administration for the time being.
Currently, the airline is cutting 3,150 jobs and ceasing flights from London's Gatwick Airport, concentrating future UK flights at Heathrow and Manchester.
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