Virgin Australia has entered voluntary administration.
In a statement to the ASX, the airline said the move would help “recapitalise the business” and ensure it emerged “in a stronger financial position on the other side of the COVID-19 crisis”.
The board of directors has appointed Deloitte’s Vaughan Strawbridge, John Greig, Sal Algeri and Richard Hughes as voluntary administrators of the company and a number of its subsidiaries.
Velocity Frequent Flyer, while owned by the Group, is a separate company and is not in administration.
The airline will continue to operate its scheduled international and domestic flights.
Australia’s troubled second airline, which saw its cash flow collapse because of tough coronavirus travel restrictions, is saddled with around $5 billion debt.
It has already stood down 80 per cent of its direct workforce and announced 1,000 redundancies in the past few weeks.
Read more here: https://www.abc.net.au/news/2020-04-21/virgin-australia-goes-into-voluntary-administration-coronavirus/12167814
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