Virgin Atlantic is to support investment in its fleet through a $745 million financing against the UK carrier’s valuable slot portfolio at London Heathrow.
The proceeds from the financing will be put towards improvements such as the refurbishment of its Boeing 787-9s – with new interiors from 2028 – and the introduction of 10 Airbus A330neos from the third quarter of next year.
Virgin Atlantic says the funds will also support the roll-out of wi-fi uprgrades.
In its most recent annual report, for 2024, Virgin Atlantic put the market value of its slot portfolio at £715 million ($943 million). It also mentioned that a “portion” of its long-term borrowings was secured against it.
Chief executive Shai Weiss says the agreement is an “important milestone” and will strengthen the carrier’s balance sheet.
The secured financing has been arranged in partnership with Apollo-managed funds.
“This creative, asset-backed structure unlocks important capital investment for Virgin Atlantic – a strong, established brand that we believe is well-positioned for continued success with its differentiated offering in aviation,” says Apollo partner Samuele Cappelletti.
British Airways parent IAG has also previously used its London Heathrow and Gatwick slots as collateral for financing arrangements.
