Virgin Atlantic has secured a $745 million asset-backed deal with Apollo. The senior secured financing is backed by slots at London Heathrow.
The proceeds will strengthen the airline's balance sheet and allow it to continue upgrading its onboard products. This includes the refurbishment of its Boeing 787-9 fleet, introducing upgraded interiors and expanded upper-class and premium cabins from 2028.
From the third quarter of 2026, the airline will add 10 new A330neo aircraft, which will feature expanded premium cabins and six ‘retreat suites’.
The financing will also support the airline's rollout of free Wi-Fi via a Starlink solution.
“We’re delighted to partner with Apollo on this transaction, and for their confidence in Virgin Atlantic, as we invest in delivering the best experience in the skies for our guests,” said Virgin Atlantic CEO Shai Weiss.
“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,” said Apollo partner Samuele Cappelletti.
Gibson Dunn acted as legal counsel to the Apollo-managed funds and affiliates, while Apollo Capital Solutions Europe provided arrangement services.
Redding Ridge Asset Management provided rating advisory solutions in support of the transaction.
Citigroup acted as placement agent, as well as transaction and rating advisor, and Herbert Smith Freehills Kramer acted as legal advisors, respectively, to Virgin Atlantic.