Virgin Atlantic on Monday withdrew a motion requesting the suspension of a transport ministry decision to revoke the operating licences of Cobalt Air, which was grounded last month after failing to secure fresh cash.
Virgin had secured a court order last week that temporarily suspended the ministry’s decision until Monday when the two sides were scheduled to argue their cases before the court.
The company’s action is thought to be linked with the fact that it owns the valuable Heathrow airport slot used by Cobalt and it risked losing it after the airline had its licences revoked.
It appears that between Friday and Monday, Virgin had resolved the matter and there was no need to pursue the case any further.
The transport ministry had revoked Cobalt’s commercial and operating licences the day after the company announced it was grounding its fleet on October 17.
Despite being given time, the airline had failed to raise the cash necessary to keep it going.