Virgin Australia has entered voluntary administration, leaving the jobs of at least 15,000 airline workers and connected supply chain workers under a cloud.
Key points:
- Virgin Australia is now being run by Deloitte administrators, who will work with the company on paying off its debts
- Virgin Group founder Richard Branson has vowed that the airline will be “back up and running” soon
- Airline industry experts say the administrators will now have to make tough decisions, including reducing planes and staff
In a statement to the ASX, the airline said the move would help “recapitalise the business” and ensure it emerged “in a stronger financial position on the other side of the COVID-19 crisis”.
The board of directors has appointed Deloitte’s Vaughan Strawbridge, John Greig, Sal Algeri and Richard Hughes as voluntary administrators of the company and a number of its subsidiaries.
Mr Strawbridge said there were “no plans to make any redundancies”. The airline will continue to operate its scheduled international and domestic flights.
Velocity Frequent Flyer, while owned by the Group, is a separate company and is not in administration.
Treasurer Josh Frydenberg ruled out a rescue package from the Federal Government.
“The Government was not…