The Virgin Australia Holdings Limited Board of Directors has appointed Deloitte as voluntary administrators of the company and a number of its subsidiaries.
The airline advised that it 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.”
“We feel for our friends at Virgin Australia, and wish them well as the airline navigates its way through the headwinds of administration and beyond. This is a disappointing moment for Virgin Australia and travel industry more broadly. Australia needs two robust, competitive airlines. We’re hopeful that this process delivers that.”
The Travel Authority Group’s CEO, Peter Hosper.
Virgin Australia will continue to operate its scheduled international and domestic flights which are helping to transport essential workers, maintain important freight corridors, and return Australians home.
Administrator, Vaughan Strawbridge, said: “Our intention is to undertake a process to restructure and re-finance the business and bring it out of administration as soon as possible.
“We have commenced a process of seeking interest from parties for participation in the recapitalisation of the business and its future, and there have been several expressions of interest so far,” Strawbridge added.
Velocity Frequent Flyer, while owned by the Group, is a separate company and is not in administration.
“Our decision today is about securing the future of the Virgin Australia Group and emerging on the other side of the COVID-19 crisis.”
Virgin Australia Group Chief Executive Officer, Paul Scurrah.
“In 20 years, the Virgin Australia Group has earned its place as part of the fabric of Australia’s tourism industry. We employ more than 10,000 people and a further 6,000 indirectly, fly to 41 destinations including major cities and regional communities, have more than 10 million members of our Velocity loyalty program, and contribute around $11 billion to the Australian economy every year,” said Mr Scurrah.
“Australia needs a second airline and we are determined to keep flying. 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.”
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