Virgin Atlantic has filed for bankruptcy protection in the US, just one month after securing a £1.2billion rescue package to save jobs amid the coronavirus pandemic.
The airline, largely owned by billionaire Richard Branson, is seeking protection under chapter 15 of the US bankruptcy code, which allows a foreign debtor to shield assets in the country.
The court filing said it had negotiated a deal with stakeholders "for a consensual recapitalization" that will get debt off its balance sheet and "immediately position it for sustainable long-term growth".
It comes after Virgin Australia filed for voluntary administration - a type of bankruptcy - in April.
At the time, Sir Richard Branson said it was not the end for Virgin Australia but admitted it no longer had "cash in the bank".
In a letter penned to staff, he said: "Never one to give up, I want to assure all of you - and our competitor - that we are determined to see Virgin Australia back up and running soon.
It came after Australia's Federal Government rejected its repeated requests for an emergency bailout package, with the airline struggling with £2.5billion of debt.
The move placed 16,000 jobs at risk.
Last month, Virgin Australia was bought by Bain Capital, which said it supported the airline's current management team and its turnaround plan for the business.
Bain also promised a "significant injection of capital" that would help Virgin Australia recapitalise and retain thousands of jobs.
However the US private equity group shortly after announced 3,000 job cuts, equivalent to around a third of the airline's workforce.
The turnaround plan for Australia's second largest airline will also see it retire the budget brand Tigerair.
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"Working with Bain Capital, we will accelerate our plan to deliver a strong future in a challenging domestic and global aviation market," Virgin Australia's chief executive Paul Scurrah said.
Virgin Australia, which serviced domestic as well as short-haul international destinations, was founded in 2000 and was one of Australia's main aviation providers.
Airlines around the world are struggling as they deal with the severe plunge in air travel caused by the coronavirus pandemic.
British Airways is currently preparing to axe up to 12,000 roles, while easyJet is cutting 30% of its fleet.
The budget airline has also announced plans to close hubs at Stansted, Southend and Newcastle airports as part of a huge restructuring following the global coronavirus pandemic.
Elsewhere, Ryanair has warned up to 3,000 jobs could be axed over the Government's handling of the global coronavirus crisis, as Ireland continues to enforce a 14-day quarantine rule for overseas travellers.