Cairns flights: Virgin buyout an option says Nita Green
North Queensland senator Nita Green has called for the federal government to take an equity stake in Virgin Australia to ensure its future flying to regional areas.
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CHINESE Government-owned airlines are considering an offer to buy the embattled Virgin Australia Group in last-minute takeover talks that could prevent the carrier’s “catastrophic” collapse.
Well-placed sources have told News Corp the Government, through China Southern Airlines, China East Airlines and Air China, is understood to be in discussions about purchasing the Queensland-based carrier, but no formal offer has been lodged.
An approach by the Chinese carriers could vindicate the Morrison government’s call for Virgin Australia to find a market-led solution to its cash problems instead of relying on a “blank cheque” from taxpayers.
The joint approach from two Chinese carriers would likely require approval from the Foreign Investment Review Board and, if approved, could prevent Virgin Australia from collapsing into voluntary administration.
It comes as North Queensland Senator Nita Green called for the Federal Government to take an equity stake in Virgin Australia to ensure its future flying to regional areas.
She said Cairns and the Whitsundays risked becoming ghost towns due to the collapse of the tourism industry.
“Tourism supports 20,000 jobs directly in Far North Queensland alone. So I want to make sure our aviation sector is there in the long-term to help support those jobs,” she said.
“Right now Virgin Australia is looking down the barrel of an economic crisis and possibly closure. That is a terrible outcome not only for our aviation industry but also our tourism industry here in regional Queensland.
“Support should not be given with no strings attached. There is an option to give support which is attached to an equity stake in the company. So that means that the Australian taxpayer would have ownership in part of the company.”
Queensland Tourism Industry Council CEO Daniel Gschwind said the Federal Government’s initial $165 million investment in essential air services would give much needed hope to businesses, including for the tourism industry.
“This is a sensible measure that will help in mapping out a strategy to gradually exit domestic travel restrictions,” he said.
Originally published as Cairns flights: Virgin buyout an option says Nita Green
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