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Five lessons from Virgin's collapse

The consequences of Virgin's fall will be a surge in market share for Qantas and a slimmed-down competitor.

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There are at least five lessons from the collapse of Virgin Australia, starting with the huge risks involved in running a balance sheet with excessive levels of debt.

Much of the blame for Virgin's parlous debt position, which is split $3 billion to secured creditors and $2 billion in unsecured creditors, must rest with the company's major shareholders.

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Tony Boyd is the former Chanticleer columnist. He has more than 35 years' experience as a finance journalist. Connect with Tony on Twitter. Email Tony at tony.boyd@afr.com

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    Original URL: https://www.afr.com/chanticleer/five-lessons-from-virgin-s-collapse-20200420-p54lj6