Virgin Australia goes into voluntary administration
Struggling airline Virgin Australia will go into voluntary administration with its future – and a competitive airline market in Australia – up in the air.
The AFP reports the 10,000 Virgin staff were informed late on Monday as a desperately needed A$1.4 billion bailout from the government wasn’t forthcoming.
The next step is to appoint administrators to find a buyer or restructure debt, which is reportedly about A$5 billion.
Australian media reported Deloitte has been appointed as administrator.
A bailout never came as Virgin is 90% foreign owned and its ‘investors have deep pockets’, according to the treasury department.
At stake is a competitive market with two full-service airlines and the future of thousands of jobs.
"It is a viable and much-needed business and without it Australia will struggle to get its economy back on track once the crisis abates," said Transport Workers Union national secretary Michael Kaine.
Unions and the Australian Competition and Consumer Commission have also warned of the impact of Virgin Australia going bust and leaving Qantas as the only viable option on many routes.
"Australia went into this crisis with two full-service airlines and it’s really important that we come out the other end with two full-service airlines," said ACCC chair Rod Sims.
Queensland and NSW state governments had been competing against each other with cash injections for the Brisbane-based airline, but the reported A$200 million was well short of what it needs just to survive.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025