Branson's abode in the British Virgin Islands - where residents pay no taxes on income or capital gains - made a state bailout politically difficult. The British government earlier rejected his plea for a loan guarantee for Crawley,England-based Virgin Atlantic on the grounds that its credit rating was too low.
The snub launched weeks of frenzied talks to save the stricken airline. Weiss pitched his recovery strategy to a dozen potential supporters in a virtual presentation in May.
That led to interest from several parties,while Branson raised more than $US400 million to help his companies by selling shares of Virgin Galactic.
One of the thorniest issues involved freeing up credit-card payments withheld by settlement firms in case Virgin Atlantic went bust. That matter was resolved in the past few days,people familiar with the matter said.
Aircraft-leasing firms have largely gone along with the proposals,while about £880 million related to aircraft deliveries was re-phased and financed for the next five years. Weiss said the accord applies mainly to Airbus A350 jetliners.
Cost cuts,including the elimination of more than 3000 jobs,the closure of a base at London Gatwick airport,and the retirement of older jets,will save £280 million each year.
Delta,which owns 49 per cent of Virgin Atlantic,had said it would not put in more cash. However,the US airline will make a significant contribution by delaying outstanding marketing fees and other dues.
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Virgin Atlantic will launch a restructuring process in the UK to make its plan binding on all creditors if it gets support from 75 per cent of them. Weiss said backing is"there or thereabouts"for each class of creditors,and that he was confident of clearing the court hurdle.
Branson,a 30-something music entrepreneur at the time,started Virgin Atlantic after a trip to the Caribbean on a commercial airliner was cancelled at the last minute. He chartered a plane on the spot,paying with his credit card,and sold seats to the other passengers whose flight had been bumped.
In time,the company grew to become the only credible UK competitor to British Airways,beginning an intense rivalry that continues to this day. Branson's airline operates mainly on trans-Atlantic routes between London and US destinations such as New York and Los Angeles. The fleet will be pared back to 37 planes from more than 40.
The North Atlantic niche is normally the most profitable in the airline industry. But Virgin has had to park its fleet due to the coronavirus,and restrictions on flying between the US and the UK have caused a continuing collapse in demand,even as other travel markets begin to open with the easing of lockdowns.
On Tuesday,the EU recommended keeping its external borders shut to Americans and most other foreigners for at least two more weeks,Bloomberg News reported.
Weiss said the return may be a slow one but that it will be aided by the expansion of so-called air bridges between specific countries and later by health passports showing passengers are coronavirus-free.
Bloomberg