Virginia Australia is the largest airline that failed because of the new coronavirus pandemic, which led to the worst crisis global airlines have ever faced.
According to Virgin Australia’s press release, the Brisbane-based airline entered into “voluntary management” on April 21 – the equivalent of Australia’s bankruptcy. This process will allow airlines to restructure and seek external investment after current shareholders and the Australian government refuse to provide support.
Virgin Australia will continue to meet its already tight schedule both in Australia and internationally. The airline offers 64 domestic flights every day, including to Brisbane (BNE), Melbourne (MEL) and Sydney (SYD), as well as limited international flights to Hong Kong (HKG) and Los Angeles (LAX).
“Our intention is to carry out the business restructuring and refinancing process and get it out of management as soon as possible,” said Vaughan Stroubridge, one of Virginia Australia’s administrators and partners at Deloitte. ” We have started the country’s interest to participate in the recapitalization of business and its future. “
Virginia Australia is the largest airline to date being closed, bankrupt, or facing a coronavirus pandemic. The British airline Flybe was the first to have an accident in early March, followed by Compass Airlines, RavnAir and Trans States Airlines in the United States.
South African Airways was also on the verge of collapse after the South African government refused its request for help, Bloomberg reported.
The International Air Transportation Association (IATA) has warned that half of the world’s airlines could collapse or be purchased without state assistance to help overcome the COVID-19 crisis.
Virginia Australia has been ruled out for weeks. The airline has been financially weak after the return of expensive multi-year investments and applied for a $ 1.4 billion ($ 888 million) loan from the federal government at the end of March. The loan was rejected because additional funds were requested from major Etihad Airways shareholders, HNA China, Nanshan and Singapore Airlines, according to the Sydney Morning Herald.
This airline is the second largest in Australia after Qantas Airways. Virginia Australia flies nearly 31% of the available mileage for seats in 2019 – 37%, including its budget subsidiary Tigerair Australia – according to Cirium’s schedule. Qantas flew nearly 39% of its capacity in Australia during the year.
Virgin Australia had 10,620 employees at the end of June 2019.