Qld politics: Virgin Australia on the rise after taxpayer infusion

Queensland’s effort to save Virgin Australia from obliteration has protected jobs and delivered a $70m return to taxpayers in just five years.

Virgin Australia is headquartered in Brisbane.

Queensland’s effort to save Virgin Australia from obliteration has protected jobs and delivered a $70m return to taxpayers in just five years.

The nation’s second-largest airline will return to the ASX on June 24, completing a stunning recovery from its Covid-19 collapse five years ago.

Queensland Investment Corporation took a $200m stake in the airline, which has generated a near $14m return each year.

Taxpayers, through QIC, will continue to part-own the airline when it floats.

A QIC spokesman said: “The Queensland government’s investment in Virgin Australia alongside Bain Capital has played a significant role in not only stabilising but rebuilding what was a distressed asset at one of the most challenging times in aviation history.

“Securing Virgin’s primary operations and headquarters in Queensland has delivered strong employment and economic activity to the state, in line with the objectives of the investment package.

“A return to the ASX is an endorsement of Virgin’s recovery and ensures Queenslanders continue to benefit from the airline being headquartered in the state in the years ahead.”

Virgin Australia is expected to float on the ASX on June 24 at $2.90 per share, which would deliver a market capitalisation of $2.3bn.

Deputy Opposition Leader Cameron Dick – who drove the $200m investment as treasurer in the previous Labor government – said the investment had protected jobs and generated a return.

“We knew this was a sensible and prudent investment to protect jobs and deliver a decent return on investment for Queenslanders,” he said.

“If we hadn’t taken this decision to invest in Virgin Airlines, Queenslanders, particularly regional Queenslanders, would have suffered.

“There would have been job losses.

“And as we saw with the collapse of Ansett, regional Queenslanders would have suffered enormously with dramatically reduced airline services to the regions.”

Originally published as Qld politics: Virgin Australia on the rise after taxpayer infusion