Virgin Australia looks set to call in the administrators today as last-ditch attempts to raise capital to keep the airline going have failed.
The airline, founded as Virgin Blue in August 2000, operates a widespread domestic and international airport from hubs in Brisbane, Melbourne and Sydney.
The brand was changed to Virgin Australia, with a new livery, in 2011 as the company underwent restructuring. It has been an important part of Australia’s important two-airline policy which helps keep healthy competition and fares affordable for the country’s travelling public.
Now, with debts of around AUS$5 billion, requests for a loan from the Australian government have failed to bring enough cash to the table.
The airline has been struggling with the worldwide grounding owing to the Covid-19 pandemic, despite still operating a number of government-subsidised essential routes.
Virgin Australia has a fleet of Airbus A330-300, ATR 72-600, Boeing 737-800 and Boeing 777-300ER aircraft.
It also has interline cargo agreements with Airwork and Pionair Australia.
Subsidiary Airlines
Virgin Australia bought a 60% share in Tiger Airways Australia in 2012, which was later increased to full ownership. Following grounding due to Covid-19, Tiger Airways cabin crew and pilots were stood down and it is not known whether this airline will fly again, or whether it will fall as a result of Virgin Australia’s potential collapse.
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