Yesterday Virgin Australia sadly announced that they have gone into 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 get-go, passenger flights where restricted/grounded and staff were stood down. This impact was felt by the freight & logistics sector, which saw air freight prices rocket and space availability extremely limited. Just last Friday it was announced that Virgin had been given Federal Government backing to continue operating its domestic flights and reinstate 200 staff. However, the struggling airline said it was not enough to keep them open 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 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.
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 government to make this happen and create a stronger business ready to provide even more value to customers, competition to the market, stimulus to 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.”