Virgin reportedly files for voluntary administration
about 4 years in heraldsun
Virgin Australia has reportedly been placed into voluntary administration as the airline struggles to service a five million dollar debt exacerbated by the COVID-19 crisis.
Virgin is due to make an official announcement tomorrow, but the Australian reports the airline will bring in accounting firm Deloitte to restructure it's debts.
The Australian revealed a Virgin board meeting was taking place to discuss the airline’s future as it struggled under a $5 billion debt load and effective grounding as a result of the coronavirus crisis.
Deputy Prime Minister Michael McCormack said the government is not looking to bail out Virgin at the moment, but that it is important the public has access to two domestic airlines.
"We want there to be competition in the market place," he said.
"If it is voluntary administration as has been reported in the news tonight, then those employees of Virgin, and I know they have 10,000 of them...they will still be able to use JobKeeper package."
Image: News Corp Australia
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