Preflight

Australian aviation news & views

Restructuring for “sustainable growth”

Virgin taps shareholders for $852 million in fresh capital, plans to withdraw some ATR turboprops and E190 jets

Virgin Australia chief executive John Borghetti says the $852 million in fresh capital to come from existing shareholders will be used to pay down debt and strengthen the company’s stretched balance sheet.

At the same time, Virgin is seeking to reduce costs and make its operations more efficient through the withdrawal of between four and six ATR 72 turboprops and the disposal of all 18 Embraer E190 jets from the fleet over the next three years.