Virgin Australia: Queensland investment yet to be formalised

Queensland is still yet to sign a deal with Virgin Australia’s new owner, despite Treasurer Cameron Dick trumpeting the state’s success in June as part of a bid to keep the airline’s headquarters in the Sunshine State.

Queensland is yet to negotiate a deal with the new owner of Virgin Australia airline despite the state government trumpeting its victory in June.

The Courier Mail can reveal negotiations between the state and Bain Capital – Virgin Australia’s new owner – are ongoing.

The revelation comes despite Treasurer Cameron Dick announcing on June 26 that the government, through the Queensland Investment Corporation had “landed a solid, commercially astute deal, that will benefit Queensland”.

“Queensland is the home of aviation in Australia, and we are thrilled that our investment, a mix of equity and economic incentives, has helped to secure that into the future,” he said in June.

“The Palaszczuk Government’s investment, facilitated by (QIC), will ensure that Virgin’s headquarters remain in Brisbane, retaining thousands of direct and indirect jobs.”

Mr Dick had pledged to spend up to $200 million and take an investment stake in the embattled carrier to keep its headquarters in Queensland.

Negotiations between Queensland Investment Corporation and Bain Capital – Virgin Australia’s new owner – are ongoing. (AAP Image/Dan Himbrechts)

However, only a letter of intent between the two parties was signed and negotiations are ongoing.

A spokesman for QIC said while a deal had not been done, it was confident of translating a preliminary agreement into a formal one.

“QIC negotiated with Bain on behalf of the Queensland Government to secure a deal that delivered on the state’s objectives,” he said.

“This was documented in a letter of intent, signed by both parties in June.

“Since then, QIC and Bain have been negotiating to translate that letter of intent into a final agreement.

“Those negotiations are ongoing.”