AIRLINE Virgin Australia has confirmed it has entered into voluntary administration.
In a statement to the ASX, the airline said VA would help “recapitalise the business” and ensure it emerged “in a stronger financial position” after the pandemic.
The board of directors has appointed Deloitte’s Vaughan Strawbridge, John Greig, Sal Algeri and Richard Hughes as administrators of the company and several subsidiaries.
The airline is to continue to operate its scheduled international and domestic flights.
Transport and infrastructure minister and Deputy Prime Minister Michael McCormack said the situation was “a particularly difficult time for its staff, its suppliers and the aviation sector more broadly”.
“The Australian government has and will continue to support the industry through our various initiatives which to date have seen more than $1.2bn committed to maintaining operations across the sector and supporting jobs,” he said.
He said this investment came on top of the $130bn JobKeeper package, which continues to be available to Virgin employees at this time.
“The government remains committed to two commercially viable airlines operating domestically across Australia. This is important for competition and the Australian economy,” Mr McCormack said.
“We will ensure the ACCC strongly enforces competition laws so airlines are able to compete effectively as the industry rebuilds.”
Mr McCormack said the government had appointed Nicholas Moore, former Macquarie Group CEO, to lead their engagement with the administrator.
“The government’s preference continues to be for a market-led solution,” he said.
“We will engage constructively with Virgin Australia’s administrator to ensure Australia maintains two commercially viable airlines.”