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Buckle your seat belts. We’re in for a bumpy ride! Virgin Australia has crashed into voluntary administration as it loses its battle against massive debts and the impact of Coronavirus travel shutdown.

The second most prominent airline in Australia has already appointed Deloitte to manage potential restructuring options, ass reported in SMH. The accounting firm will most likely run the administration process and is expected to look at ways to keep the airline from a crash ‘n burn situation.

The Board of directors of Virgin Australia met today and a knowledgable source has said that the board has given the go-ahead and the official administration announcement is inevitable.

The airline has an enormous debt of around $5-billion and its negative situation was exacerbated by the COVID-19 travel ban.

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No To A Loan

Virgin Australia has previously asked the federal government for a $1.4 billion loan, but its request was denied, with Prime Minister Scott Morrison saying he did not want to ‘get in the way of a commercial resolution’.

NSW Vs QLD

Meanwhile, both NSW and Queensland governments have offered assistance to the beleaguered airline, with strings attached of course.

New South Wales has offered short-term funding if the airline agreed to relocate to the new airport in Sydney’s West.

The Queensland government has offered $200-million as long as the airline kept its headquarters in Brisbane.

Virgin Australia has suspended all but one domestic route, stood down 8,000 workers and had its credit rating downgraded.

Virgin employs about 10,000 people directly and supports another 6000 jobs indirectly.

Watch this (air) space…

Do you have any flights booked with Virgin Australia? Tell us in the comments below.

  • No flights booked but a heap of Velocity points tied up with them.

    Reply

  • Do believe that the consortiums who already own Virgin should be bailing them out, not Aust. All plane companies will find it hard to recover from this pandemic an d many will go under. However all companies want to fly in proven routes so the monopoly that Qantas once had will never happen again in my opinion. Do feel sorry for their staff, as well as many others who have no work and may not get back to work after this is over.

    Reply

  • Thankfully I don’t have any flights booked. The crashing of the airline is bad news for competition

    Reply

  • No I haven’t and I can’t remember if we ever flew with them either.

    Reply

  • Having a monopoly in the air is not great. For this and for the sake of the amazing employees I hope that Virgin can get back up and running soon. The VARA part of the business is still running and I hope that can continue to do so for the people of Christmas and Cocos Keeling Islands particularly.

    Reply

  • No thankfully

    Reply

  • We were lucky enough to have returned from travel flying virgin at the end of last year before all this started.
    I feel very sorry for all
    The employees

    Reply

  • I paid for 8 of my family to travel with me to Christmas Island last year. I had to cancel one of the seats because one family member never came along. Couldn’t get the money back but it was banked into Virgin dollars (fly at a later time). I rang them and said due to the virus we won’t be able to fly again until September next year. They just told me to ring on the first of the month to extend for one month at a time. Looks like I may lose that money. Not impressed and doubly upset for all those who work for Virgin.

    Reply

  • It would be terrible if Qantas has a monopoly on domestic flights. I tried to redeem my Velocity points but it seems that everyone else had the same idea and now no redemption for 4 weeks. May as well say goodbye to my points.

    Reply

  • I don’t, but this is really sad. I’m so hoping someone can still come to the rescue and save all those jobs.

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  • No flight booked with them.I have never flown interstate by air.

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  • Thankfully no, as I hadn’t booked most of my 2020 travel yet. Hopefully someone bails out VA but it would be good if an Australian owned airline started up

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  • I have nothing booked with Virgin Australia – my preferred Airline is Qantas … I do feel sorry for the employees who will lose their jobs though ….

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  • I really hope Virgin can get up and running again soon. It’s my families preferred airline.

    Reply

  • Although might I say, t least they asked for a loan rather than a bail out.

    Reply

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