Virgin Australia Airlines, Australia’s Top Airline, Enters Bankruptcy Amid Virus Woes

Virgin Australia Airlines, Australia’s Top Airline, Enters Bankruptcy Amid Virus Woes

After Quantas, Australia’s Second biggest Airline, Virgin Australia Holdings Ltd., said Tuesday that it is entering voluntary administration, one of the first big airlines to seek bankruptcy protection as the coronavirus pandemic upends global travel.

The Airline’s move comes after it failed to secure the required financial assistance from state and federal governments in Australia. It appointed members of Deloitte to serve as voluntary administrators, and hopes to recapitalize the business and emerge in a stronger financial position.

Bankrupt Virgin Australia’s Foreign Backers Became Liability in Search for Bailout
The Australian government refused financial aid during coronavirus pandemic on fears it would end up bailing out foreign carriers that own 90% of Airline’s stock