virgin australia voluntary administration

Virgin Australia has entered voluntary administration. Velocity Frequent Flyer, while owned by the Group, is a separate company and is not in administration.

"The most likely outcome of a Qantas monopoly is higher airfares, unless the flag carrier undertakes a strategy to buy the goodwill of the Australian public by keeping airfares stable, knowing that a second airline will eventually enter the market," Mr Youl said.StrategicAero Research chief analyst Saj Ahmad said Virgin Australia "never really seemed to monetise its market share in its cut-throat competition with Qantas", and because of COVID-19, its foreign shareholders were never going to step in.Virgin Australia is majority foreign-owned by Etihad Airways (20.94 per cent stake), Singapore Airlines (20.09 per cent), Nanshan Group (19.98 per cent), HNA Group (19.82 per cent) and Richard Branson's Virgin Group (10.42 per cent). "We understand, we acknowledge that and we want to see Virgin come out the other side.

"IBISWorld senior industry analyst Tom Youl said the airline itself may emerge from bankruptcy proceedings under new ownership, and in a better position.But in the meantime, he said there was no third airline waiting in the wings to fill capacity gaps, which may be bad for consumers.The Sydney-Melbourne route ranks second for aircraft movements and third for passenger volumes among all global flight paths. "In most countries federal governments have stepped in, in this unprecedented crisis for aviation, to help their airlines. Critically, would Qantas qualify for a similar financial injection too? "Narrow Road Capital funds manager Jonathan Rochford said the blame for Virgin's problems ultimately lay with its management and board, who failed to act during a decade when the airline did not make a decent profit.A nation of travellers is grounded and Virgin is asking for government help to the tune of $1.4 billion.

"This is not the end for Virgin Australia, but I believe a new beginning.

Wages will continue to be paid, and those who have been stood down, and are accessing JobKeeper, the intention is to continue to make those payments available to those staff.

"Transport Workers' Union national secretary Michael Kaine said the Federal Government should approach administrators with a plan to ensure the preservation of workers' entitlements. Virgin Australia has formally entered into voluntary administration. "In 20 years, the Virgin Australia Group has earned its place as part of the fabric of Australia's tourism industry," Mr Scurrah said. "Qantas too will have little choice but to lop fares to get bums on seats. I love Virgin Australia as such, and even more than that, it’s important for Australia to at least have two semi-global full service airlines. "With millions losing their jobs around the world, even if all aviation returns to normal tomorrow, how many are going to have disposable income to fly?" "It is not too late. The airline notified the Australian Stock Exchange (ASX) at 22:51 UTC on 20 April 2020. "Virgin chief executive Paul Scurrah said he took comfort from Mr Frydenberg's comments about Australia needing two airlines. "Our intention is to work with administrators and the management team, along with investors and government, to ensure that Australia maintains two airlines," he said.Mr Scurrah was asked why Mr Branson did not step in with his own cash to save the airline.He said he spoke to Mr Branson on a regular basis and that he "cares deeply about Virgin Australia". 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. 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. How long will it take to get my results back?Millions of Aussies have been told to isolate. "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. "Opposition Leader Anthony Albanese, who has repeatedly urged the Government to step in with a $1.4 billion loan, said Qantas would now be left with a monopoly, which would have "very significant" consequences for consumers.But Deputy Prime Minister Michael McCormack said there was a path forward under voluntary administration to recapitalise and restructure the business.He said the Federal Government had given the airlines a $715 million package which included waiving certain fees and charges when they were flying planes.