Virgin Australia enters into “voluntary administration”

Johanna Koyser
2 minutes

For weeks, many airlines have been fearing for their future. The economic impact of the coronavirus is becoming clearer every day. So today there is bad news from Down Under: Virgin Australia, the second largest Australian airline after Qantas, is entering the so-called “voluntary administration”. “Voluntary administration” is the Australian term for bankruptcy. This makes Virgin Australia with its more than 10,000 employees the biggest victim of the corona crisis in aviation so far.

But the filing of bankruptcy does not necessarily mean that Virgin Australia will disappear from the air. Currently, the airline operates 64 domestic flights daily and also offers a limited number of international flights to Los Angeles (LAX) and Hong Kong (HKG). This will remain so for the time being. Paul Scurrah, CEO of Virgin Atlantic, will also remain at the helm of the group. The administrators now appointed by Deloitte, Vaughan Strawbridge, John Greig, Sal Algeri and Richard Hughes, confirmed this cooperation. There is hope that the Australian airline will survive the crisis with appropriate measures and emerge from it stronger.

Our decision today is about securing the future of the Virgin Australia Group and emerging on the other side of the COVID-19 crisis.

Paul Scurrah, CEO of Virgin Australia

Even before Corona, the company was struggling with economic problems. Shaken by costly investments, it tried to obtain a loan of 888 million US dollars from the Australian government. However, this was refused, as were corresponding inquiries from investors of Virgin Australia. So it can be said that in this case, too, the corona crisis has further damaged an already ailing company. However, Virgin Australia’s chances are good at the moment. Otherwise, a complete shutdown of the company would be the biggest case of the Corona crisis in aviation to date.

Picture © Nathan Dumlao

by Johanna Koyser

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