SUNDAY MAY 26, 2024
×
Search AeroXplorer
Virgin Australia to Enter "Voluntary Administration"

Virgin Australia to Enter "Voluntary Administration"

BY TEJAS B. 19870d AGO 0 COMMENTS
Virgin Australia A332
A Virgin A330 departing Sydney. Credit: TheExplorerBlog | Winston Shek

 

 

 

According to multiple sources, Australia's second largest airline, Virgin Australia, has entered "voluntary administration".

 

Voluntary Administration is when a company cannot pay its debts, resulting in an administrative takeover by independent contractors.

 

The airline entered administration the day after the CEO of the Virgin Group, Richard Branson, made a last and final appeal for the Australian Government to provide financial aid and support. Richard Branson also offered his home on Necker Island as collateral as Virgin Australia is on the verge of collapse. Virgin Group's other airline, Virgin Atlantic,(based in the U.K.) is also currently suffering from a financial crisis.
 

Branson also shared a video message on Social Media to all Virgin Australia employees stating that "This is not the end" as well as "I want to assure all of you - and our competitor - that we are determined to see Virgin Australia back up and running soon." 
 

In addition to asking for Financial Support from the Australian Government, the Airline has looked for investors for help. The two largest Stakeholders of the airline are Etihad Airways ( Based in Abu Dhabi ) and Singapore Airlines ( Based in Singapore ).  However, both airlines are currently suffering from the COVID - 19 crisis as well, the idea of the two stake holders giving financial aid to the airline is unlikely. 

 

 

A Virgin Australia 777 at LAX. Credit: TheExplorerBlog | Jimmy Wu

 

 

Furthermore, according to CNN Business, Richard Branson said in a letter to employees that the survival of both Airlines in the Virgin Group was important not only for the jobs of their employee, but for the much needed competition for British Airways (in the U.K.) and Qantas (Australia).

 

Currently, Virgin Australia has cut 95% of their flight operations as well as a temporarily cutting 80% of their workforce of their jobs.

 

Also, according to CNN Business, The Virgin Group operates a lot of sectors that are among the hardest hit amid the COVID - 19 Crisis. Aviation, hotels, cruises and leisure travel are just some of the sectors that the Virgin Group Operates that have been hit hard due to the novel coronavirus pandemic. Richard Branson has pumped more than $250 Million into the Virgin Group to avoid further financial struggles.

 

On Tuesday, the Australian Treasury said it would work with Virgin Australia to ensure that Australia has two "commercially viable airlines."

 

Governments all around the world, including the U.S, have been providing financial support for their airlines. Virgin Australia isn't the only airline suffering from the COVID-19 crisis. South African Airways is on the brink of collapse. Low Cost Carrier Norwegian has several different subsidiaries that have gone bankrupt.


 

 

Tejas B.
Tejas is an aviation photographer based in the DFW Metroplex. He has been passionate about aviation and photography since he was young and has pursued these interests by planespotting professionally, founding his school’s photography club, and joining AeroXplorer, where he currently serves as the Chief Marketing Officer. He strives to improve his photography skills by utilizing different editing platforms and learning from other photographers. Other than aviation and photography, Tejas has a passion for learning about Politics, Public Policy, and International Affairs. He is currently the Vice President of his school’s Model United Nations Delegation. You can view Tejas’ aviation photos on AeroXplorer as well as on his Instagram - @dtxjets.

Comments (0)

Add Your Comment

SHARE

TAGS

NEWS Virgin Australia Virgin Coronavirus COVID-19

RECENTLY PUBLISHED

Why Certain Foods Do Not Get Served on Planes Although there are many jokes about airline food quality, Airlines invest a lot of time and resources into researching and designing the meals they serve their passengers. However, despite the investments, certain food items will rarely, if ever, make it on your next flight. Our perceived change in taste, costs, efficiencies, and regulations play a significant part in why certain foods are not served on planes. INFORMATIONAL READ MORE »
Quantum INS: GPS's Replacement? It may sound like something out of science fiction, but navigation using the principles of Quantum Physics is fast becoming a reality. Positioning, Navigation, and Timing (PNT) can increase accuracy by orders of magnitude, revolutionizing navigation across the board. Self-contained Quantum Inertial Navigation Systems (Q-INS) are also impervious to jamming or spoofing by hostile actors. NEWS READ MORE »
The Deadliest Hijacking Before 9/11: Ethiopian Airlines Flight 961 Aircraft hijackings have thankfully become increasingly rare following the tragic events of September 11th. However, rather unfortunately, various hijacking events had taken place in the decades leading up to the new millennium. One of those events was Ethiopian Airlines Flight 961, an infamous flight that turned out to be the deadliest hijacking incident before 9/11. STORIES READ MORE »


SHOP

$2999
NEW!AeroXplorer Aviation Sweater Use code AVGEEK for 10% off! BUY NOW

FOLLOW US ONLINE