There are reports that Virgin Australia are entering voluntary administration this evening after the airline has failed to secure a financial solution to keep themselves afloat.
Deloitte is the firm believed to have been engaged by the airline with meetings held this afternoon. The airline employs 10 000 people with another 6000 employed indirectly.
With a $5 billion debt and a global pandemic, the viability of the company surviving has dwindled daily. The airline originally grounded 125 planes and entered a trading halt with 8000 staff furloughed.
The Federal Government has not heeded the call for a $1.4billion bailout, though the Queensland government offered $200 million assistance, on the proviso the airline’s HQ remained in Brisbane. This would require the Federal Government to cough up the rest.
A tussle with New South Wales government who were also considering some support followed, however the offers have not been enough.
This is not great news for skiers and snowboarders with Virgin Australia being a key player in both the Japan and North American ski industry as well as cross Tasman to New Zealand.
However talk in the aviation and tourism industry is that an airline has partnered with a private equity firm considering feasting on the remains of the beleaguered Virgin Australia. Though the government could still offer a bailout.
Despite popular belief, Sir Richard Branson’s Virgin Group own a mere 10% of Virgin Australia with the remaining split between Singapore Airlines, Etihad Airways, HNA and China’s Nanshan Group.
More to follow.
