Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Invest

Virgin Australia goes into administration

By Cameron Micallef · April 21 2020
Reading:
egg

Invest

Virgin Australia goes into administration

By Cameron Micallef
April 21 2020
Reading:
egg
Virgin Australia

Virgin Australia goes into administration

author image
By Cameron Micallef · April 21 2020
Reading:
egg
Virgin Australia

One of Australia’s largest airlines has gone into voluntary administration, leaving 15,000 jobs in limbo as well as leaving Australia with the possibility of having a single domestic carrier.

Virgin Australia, who has appointed Deloitte as administrator, previously asked the Morrison government for a $1.4 billion handout to help save the embattled airline.

“Our intention is to undertake a process to restructure and refinance the business and bring it out of administration as soon as possible,” said administrator Vaughan Strawbridge. 

“We have commenced a process of seeking interest from parties for participation in the recapitalisation of the business and its future, and there have been several expressions of interest so far.”

Virgin’s business was pummelled by the coronavirus, which has caused precipitous drops in air traffic worldwide.

Advertisement
Advertisement

In a statement to the ASX, Virgin Australia said it was looking to “recapitalise the business and help ensure it is in a stronger position post-COVID-19 pandemic”.

“The decision comes as the group has continued to seek financial assistance from a number of parties, including state and federal governments, to help it through the unprecedented crisis, however is yet to secure the required support,” the statement continued.

The airline has committed to continue to operate its scheduled international and domestic flights that are helping to transport essential workers, maintain important freight corridors and return Australians home. 

Virgin Australia Group chief executive officer Paul Scurrah said: “Our decision today is about securing the future of the Virgin Australia Group and emerging on the other side of the COVID-19 crisis.

“In 20 years, the Virgin Australia Group has earned its place as part of the fabric of Australia’s tourism industry. We employ more than 10,000 people and a further 6,000 indirectly, fly to 41 destinations, including major cities and regional communities, have more than 10 million members of our Velocity loyalty program, and contribute around $11 billion to the Australian economy every year,” said Mr Scurrah.

“Australia needs a second airline, and we are determined to keep flying. Virgin Australia will play a vital role in getting the Australian economy back on its feet after the COVID-19 pandemic by ensuring the country has access to competitive and high-quality air travel.” 

Virgin has previously stood down 80 per cent of its workforce, as well as making 1,000 redundancies to help lower the cost of business.

Virgin Australia goes into administration
Virgin Australia
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article
author image

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Join the nestegg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.