The current market situation has reportedly forced the public listing of Virgin Atlantic, the United Kingdom based airline founded by billionaire Richard Branson, to be delayed by the company till early next year as the company now focuses on the reopening of the transatlantic market, said reports quoting sources with knowledge of the matter.
The main market of Virgin Atlantic – the United States which has remained closed for the last 18 months, is expected to open up fully in November this year following the announcement by Washington of the country allowing in people who are fully vaccinated from countries like Britain and dozens of other countries.
There were reports in August that predicted that Virgin had been considering to get publicly listed this autumn. However latest reports citing source information claimed that the company has now decided to postpone that move till next year while it focuses on and reap benefits from the wider resumption of air travel between the UK and the US.
Virgin said on September 21 that it has seen a 600 per cent surge in booking for flights to the US on the very day that Washington announced the changes in the travel rules for the country.
51 per cent of Virgin is owned by Branson through his Virgin Group while the rest stake of the company is owned by US group Delta Air Lines Inc.
There were no comments on the issue available from the airline.
The Covid-19 pandemic has severely financially hit almost all of the major airlines of the world. But virgin being a specialist of long haul flights, the prolonged closing down of U.S. routes has aggravated the crisis for the company.
A 1.5 billion pound rescue package that it received between September 2020 and March 2021 was instrumental in helping the company to survive through the pandemic crisis.
Reports also quoted sources saying that Virgin was also considering other funding options in addition to the IPO.
(Adapted from Bloomberg.com)