Virgin Australia, the second-largest carrier of Australia following Qantas, is burdened with a $5-billion dollar debt and has entered into voluntary administration with the appointment of accounting firm Deloitte to oversee the process.
The company will either: sell assets, reach an agreement with creditors, cancel debts or liquidate.
The airline will continue to operate its scheduled international and domestic flights though, at the moment, most of the company’s aircraft are currently grounded though a few are operating domestic government-subsidised routes.
Based in Brisbane, the company employs 10,000 people and 6,000 others indirectly, and has been trying to raise new funds in vain under the current coronavirus crisis.
Virgin Australia captain George Kailis told the media that he fears for himself and his co-workers. “When Ansett collapsed Virgin was already there with nine aircraft and crew,” Mr Kailis, who is also the vice-president of the Australian Federation of Air Pilots (AFAP), told ABC News.
“There were plenty of aircraft around because it was [post] 11 September.
“It still took five years to get 40 aircraft in the air and 12 years to get 70 aircraft in the air.
“Virgin had new…