27 APRIL 2020

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Article from BTNews 27 APRIL 2020

Virgin Australia seeks protection

Richard Branson’s 'down under' airline (the Virgin Group owns 10%) Virgin Australia has entered voluntary administration after failing to secure a bailout from the national government to help manage the impact of the COVID-19 pandemic.  It is flying a very restricted programme and a creditors meeting is due Thursday (30 April).

A team from accountants Deloitte has been appointed to handle the moratorium, led by Vaughan Strawbridge. He said the firm intends to undertake a process to restructure and refinance the carrier so it can exit administration “as soon as possible.”  Etihad Airways, HNA Group, Nanshan Group and Singapore Airlines each own about 20% of Virgin Australia.

Virgin Australia CEO Paul Scurrah will continue to lead the business during the period alongside its existing management team.

“Australia needs a second airline and we are determined to keep flying,” Scurrah said. “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.”

Perth Airport has quickly pursued what it calls 'standard practice' in immobilising four aircraft.  It says the airline owes $16m for airfield and terminal use.  Chinese airlines are said to be scavenging for parts of the enterprise. 

www.virginaustralia.com

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