Virgin Australia enters Administration (AU version of Ch.11)

eolesen

Veteran
Jul 23, 2003
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This happened on April 21st.

https://thepointsguy.com/news/virgin-australia-goes-bust/

“Our intention is to undertake a process to restructure and re-finance the business and bring it out of administration as soon as possible,” said Vaughan Strawbridge, one of Virgin Australia’s administrators and a partner at Deloitte, in a statement. “We have commenced a process of seeking interest from parties for participation in the recapitalization of the business and its future.”

Virgin Australia is the largest airline to-date to shut down or file for bankruptcy or an equivalent amid the coronavirus pandemic. UK regional carrier Flybe was the first to collapse in early March, followed by regionals Compass Airlines, RavnAir and Trans States Airlines in the U.S.
 
I think I posted this observation somewhere else, but I can't find it.

One of the interesting events of the Virgin Australia collapse is that the suggestion by Australian lawmakers that the government might be willing to step in and offer financing assistance (a la what is being done here in the US) was strongly opposed by Qantas. Qantas argument was basically "we don't need assistance to make money, why should anyone else?"
 
It's a compelling argument -- do you give a heart transplant to the guy with advanced lung cancer?

Fact is that VA has been on the ropes for years, and it kills me to say that because they were a client years back. Sort of like South African, except without all the government interference...