{"text":[[{"start":12.09,"text":"Virgin Atlantic has borrowed $745mn against the value of its landing slots at Heathrow to spend on cabin upgrades including Starlink WiFi in a deal with US private capital firm Apollo. "}],[{"start":27.689999999999998,"text":"The airline will use the funds to add cash to its balance sheet, pay down £180mn from a previous debt transaction and fund an upgrade programme worth hundreds of millions of dollars on its aircraft. "}],[{"start":43.129999999999995,"text":"Virgin is planning a complete refurbishment of its Boeing 787-9 fleet, including upgraded interiors and expanded upper-class and premium cabins from 2028."}],[{"start":57.309999999999995,"text":"The borrowing, which is due for repayment in 5 years, will also fund new features across its line-up, including Elon Musk’s Starlink internet, which it will offer for free across all of its cabins from next year. "}],[{"start":72.1,"text":"Virgin Atlantic CEO Shai Weiss said the deal was “an important milestone as we continue to strengthen our balance sheet and deliver on our vision to become the most-loved travel company”. "}],[{"start":86.49,"text":"Airline landing slots at airports are extremely valuable. Because airlines are required to fill the space or lose the slots for the following year, carriers occasionally loan the slots to other airlines or even run partly empty planes in order to maintain their holding. "}],[{"start":105.86999999999999,"text":"Prime slots at Heathrow — a major landing point for lucrative transatlantic travel where capacity is tight — are particularly valuable for UK-based Virgin and British Airways."}],[{"start":119.16999999999999,"text":"Virgin’s deal with Apollo will raise finance against 27 of its 31 landing slots at Heathrow. "}],[{"start":126.71999999999998,"text":"In 2015 Virgin became the first European airline to use its slots to raise money. About £180mn of the proceeds of the latest announcement will go to paying back the money from that deal. Competitors such as Delta and American Airlines have both in the past pledged landing slots to secure hundreds of millions in financing."}],[{"start":152.95,"text":"For Apollo, the deal follows a number of large investments the US private capital firm has made in the UK in the past year. It bought half of the world’s largest offshore wind farm from Ørsted for $6.5bn earlier this month and committed to providing £4.5bn in debt financing to support the UK’s Hinkley Point C nuclear power station in June."}],[{"start":180.08999999999997,"text":"The group has also deployed capital more aggressively throughout Europe in recent years. This week it agreed to buy a majority stake in Atlético Madrid, Spain’s third-largest football club, in a deal valuing it at more than €2bn."}],[{"start":196.17999999999998,"text":"“We are pleased to partner with Virgin Atlantic on this transaction, which demonstrates our ability to provide bespoke, scaled financing solutions to leading businesses,” said Apollo Partner Ben Eppley. "}],[{"start":209.70999999999998,"text":"Apollo partner Samuele Cappelletti added: “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.”"}],[{"start":238.23999999999995,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1763083097_9701.mp3"}