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Virus lays Virgin Australia low, Deloitte administrators hope for rescue
来源： 编辑：编辑部 发布：2020/04/25 09:55:11
BRISBANE's Virgin Australia Holdings became Asia's first airline to fall to the coronavirus after the outbreak deprived the debt-burdened company of almost all income, reports Bloomberg.
Administrators at Deloitte, who have taken control of the carrier, aim to restructure the business and find new owners within months. More than 10 parties have expressed an interest, Deloitte said.
Virgin Australia joins FlyBe - the United Kingdom's biggest domestic airline before it collapsed last month - as among the industry's corporate casualties of the virus. Airlines have been pummelled by domestic and international travel bans that forced them to seek government aid.
Virgin Australia, which has furloughed 80 per cent of its 10,000 workers, will continue to operate some flights for essential workers, freight and the repatriation of Australians. The airline's frequent flyer programme is a separate company and is not in administration.
Vaughan Strawbridge, one of four administrators at Deloitte, said the airline's fate should be clear in two to three months. He said he doesn't plan to change Virgin Australia's operations or fire any workers.
"Generally, you get the best outcome where you sell it as a whole, so that is definitely the preferred approach, " said Mr Strawbridge.
The fate of Virgin Australia, which had more than A$5 billion (US$3.2 billion) debt as of the end of 2019, hung in the balance after it stopped virtually all services because of the virus and its request for state help failed. The company had asked the government for a $1.4 billion loan, convertible into equity, to see it through the crisis.
Administrators at Deloitte, who have taken control of the carrier, aim to restructure the business and find new owners within months. More than 10 parties have expressed an interest, Deloitte said.
Virgin Australia joins FlyBe - the United Kingdom's biggest domestic airline before it collapsed last month - as among the industry's corporate casualties of the virus. Airlines have been pummelled by domestic and international travel bans that forced them to seek government aid.
Virgin Australia, which has furloughed 80 per cent of its 10,000 workers, will continue to operate some flights for essential workers, freight and the repatriation of Australians. The airline's frequent flyer programme is a separate company and is not in administration.
Vaughan Strawbridge, one of four administrators at Deloitte, said the airline's fate should be clear in two to three months. He said he doesn't plan to change Virgin Australia's operations or fire any workers.
"Generally, you get the best outcome where you sell it as a whole, so that is definitely the preferred approach, " said Mr Strawbridge.
The fate of Virgin Australia, which had more than A$5 billion (US$3.2 billion) debt as of the end of 2019, hung in the balance after it stopped virtually all services because of the virus and its request for state help failed. The company had asked the government for a $1.4 billion loan, convertible into equity, to see it through the crisis.