August 10, 2020

The Business of Travel

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virgin australia

Virgin Australia on the brink of collapse

Virgin Australia is reportedly down to its last $100 million and could run out of money even before the ailing carrier is sold to one of a gaggle of possible buyers.

Bidders interested in purchasing the beleaguered carrier needed to express an interest by the end of today.

Australia’s second-biggest airline collapsed in April saddled with debts of $7 billion as the travel market was decimated because of coronavirus restrictions. Of its 10,000 employees, 8500 have been stood down and are on JobKeeper.

It’s current majority-owned by the United Arab Emirates’ Etihad airline, Singapore Airlines and Chinese carrier Hainan Air, with a little stake held by Richard Branson’s Virgin Group.

Virgin Australia has continued to fly a limited-service between major cities as administrators Deloitte search for a way for the airline to get back on its feet.