Virgin Atlantic plans 1,150 more job cuts

Virgin Atlantic confirmed the completion of its $1.59 billion rescue deal on Friday (September 4), after a London court gave it the go-ahead earlier in the week.

But the airline says it needs to go further.

And that means another 1,150 roles will be axed.

Virgin says it's entering a company-wide consultation and will work with unions on the cuts.

The carrier has been hit by restrictions on British nationals going to the U.S., and expects current skeleton operations to be extended to next year.

Transatlantic flying is 70% of Virgin Atlantic's network.

It had previously said it would run out of cash at the end of September unless the rescue plan was approved.

On Thursday (September 3) a U.S. bankruptcy judge formally recognised the airline's rescue plan under the country's bankruptcy code.

The move allows a foreign debtor to shield assets from creditors in the United States.

Elsewhere, Virgin Australia was also taking steps to resolve its woes.

The creditors of Australia's second-biggest airline voted on Friday in favour of its purchase by U.S. private equity group Bain Capital.

The deal will allow the carrier to emerge from voluntary administration, which it had entered in April.

Bain Capital said in a statement the approval was an important milestone in the airline's recovery.

Under Bain's business plan, Virgin will cut a third of its workforce.

The carrier will now focus on being a domestic and short-haul international Boeing 737 operator competing against rival Qantas.

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