Brussels-based low-fare airline Virgin Express plans to clear its debts and fund operations at a new base by raising €85 million ($91 million) from its shareholders. The carrier owes €35 million to Barfair, the sister company of its 59% majority owner Virgin Sky Investments (VSIL).
By issuing 35 million shares at g1 each (most, if not all should be taken up by VSIL, although the rights issue will include other shareholders) Virgin Express will clear its debt. VSIL will provide €50 million in working capital. The deal must go through before the loan is due in June this year.
Virgin Express plans to start flying from Schiphol to Rome next month, and is expected to open a base in mainland Europe soon. The airline is determined to expand outside its Brussels hub.
Source: Flight International
