Virgin Australia is entering voluntary administration. But, the airline will still continue to honour its scheduled flights both internationally and domestically. Shareholders won’t contribute financial support any longer.
Currently the company is in approximately $5 billion debt. But the federal government’s refusing to loan the airline $1.4 billion to keep it going. So, trading halted on the stock exchange. They’ve also now entered into voluntary administration.
In a statement to the ASX, the airline stated that “”Virgin Australia has entered voluntary administration to recapitalise the business and help ensure it emerges in a stronger financial position on the other side of the COVID-19 crisis.”
Although they’ve been hit hard by the global pandemic, Australia needs a second major airline. This will ensure competitive travel rates once we get through the COVID-19 pandemic. The intent is now to bring the Virgin out of administration as soon as possible to avoid a single airline monopoly in this country with Qantas. When the global pandemic is over, travel will likely be back to usual, with multiple flights resuming around Australia.
Read the full article by the Sydney Morning Herald here: Virgin Australia confirms collapse, appoints administrators.
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