Yesterday Virgin Australia announced that they are entering voluntary administration.
The airline had been operating in Australia for over 20 years with 56 destinations around the world.
The Covid-19 outbreak severely impacted the aviation sector right from the absolute beginning. Starting with passenger flights being restricted/grounded and staff were stood down.
This impact was also felt by the freight & logistics sector, which saw air freight prices dramatically increase and the availability for space became extremely limited.
Last Friday, it was announced that the Federal Government would assist Virgin airlines financially to continue operating its domestic flights and reinstate 200 staff. However, the struggling airline claimed it was not enough to continue operating due to their increasing $5 billion debt.
They had requested a $1.4 billion loan from the government, but Scott Morrison insisted that the Government should not need to step in and help. This administration from the airline giant has created a loss of around 10,000 workers.
Richard Branson, Founder of Virgin Group, posted on his Instagram page insisting that this is not the end of Virgin Australia saying:
“I am so proud of all of you and everything we have achieved together.”
“I know how devastating the news today will be to you all. In most countries, federal governments have stepped in, in this unprecedented crisis for aviation, to help their airlines. Sadly, that has not happened in Australia.”
He continues “This is not the end for Virgin Australia and its unique culture. Never one to give up, I want to assure all of you – and our competitor – that we are determined to see Virgin Australia back up and running soon. We will work with Virgin Australia’s administrators and management team, with investors and with the government to make this happen and create a stronger business. Ready to provide even more value to customers, competition in the market, stimulate the economy, and jobs for our wonderful people.”
“Virgin Australia has captured the hearts of all Australians. That is down to all of you – past and present – who made it the best airline to fly within Australia.”
“This is not the end for Virgin Australia, but I believe a new beginning. I promise that we will work day and night to turn this into reality.”
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