Monday, 20 April 2020

Virgin Australia on the verge of administration

Virgin Australia ready to go into 

voluntary administration!

Virgin Australia grounded aircraft ay Brisbane Photo Brisbane Airport
Like many airlines around the world, Virgin Australia has been finding things a little difficult, to say the least during the coronavirus COVID-19 crisis.  It had been in long talks with the Australian government over a massive bailout which would have saved the widely well-respected budget carrier. 
The airline's board met on Monday evening to decide the future of the cash-starved operation, topping the agenda was placing the company in voluntary administration. It is expected CEO Paul Scurrah will confirm the decision in a few hours time and that the airline will be put in the hands of Deloitte who will try to restructure an estimated AUD$ 5 billion's worth of debts and appease creditors to allow the airline to continue to fly. 
It's understood that every one of its investors have been asked to contribute more to the airline, but none are either in a position to either do or want to.  The firm is owned by  (20.9%) Etihad Airways, (20%) Singapore Airlines, (19.8%) HNA Group, (19.9%) Nanshan Group and (10.4%) Virgin Group.  
Photo Virgin Australia

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