Virgin Australia to go into voluntary administration

Emotional Virgin Australia staff have begged for the airline to be saved as it reportedly goes into voluntary administration, leaving 16,000 jobs in limbo.

Virgin Australia will reportedly go into voluntary administration after failing to find a way to keep the company afloat.

It’s understood its board held crisis meetings Monday afternoon and an official announcement is “immiment”, following the NSW and Queensland governments failing to come up with enough cash to bail out the grounded airline.

The beleaguered company is struggling to overcome the $5 billion in debt to come from the COVID-19 pandemic.

Sources have told media outlets the company was unable to secure further assistance from the federal government, despite repeated efforts.

Private firms had reportedly been looking at buying the airline.

Virgin employs about 10,000 people directly and supports another 6000 jobs indirectly.

Deloitte is expected to handle the administration process.

A media spokesman declined to comment when contacted by news.com.au.

‘A TERRIFYING MOMENT’

The Transport Workers’ Union tonight urged the federal government to save thousands of jobs and work with administrators.

“This is a terrifying moment for thousands of Virgin workers,” TWU National Secretary Michael Kaine told news.com.au.

“The airline has two decades of providing decent jobs, a safe working environment and excellent service for the travelling public.

“It is a viable and much needed business and without it Australia will struggle to get its economy back on track once the crisis abates.”

Virgin staff also begged the government to step in.

“We cannot collapse, we beg you to help Virgin,” one staff member at a media conference at Melbourne Airport said today.

Another emotional employee, Tony Smith, said, “Virgin is my home away from home. They are my brother, my sister, my mum and dads, my grandfather.”

An emotional Tony Smith speaks out. Picture: James Ross/AAP

Virgin Australia is expected to go into voluntary administration.

THE FINAL LIFELINE?

The airline could have been thrown a lifeline by the NSW Government if it gave up its Brisbane headquarters and moved to western Sydney.

NSW Treasurer Dominic Perrottet revealed on Sunday that the State Government and the airline had conducted “significant discussions” around financial assistance to keep Virgin in the sky.

Speaking to Sky News’ Sharri Markson, Mr Perrottet said a move to western Sydney from headquarters in Brisbane was part of the discussion, and that the government had a “strong interest” in keeping the industry competitive.

But Queensland State Development Minister Cameron Dick hit back at the comments on Monday, telling the NSW Government to “back off” and that he would “fight any attempt by New South Wales to steal Virgin Australia from Queensland to Sydney”.

Virgin and Qantas have so far received assistance in the form of a $165 million injection from the government to support them running domestic services for the next eight weeks.

On Sunday, the Queensland government put $200 million on the table to assist the airline, but said other states would need to chip in to save the company.

Prime Minister Scott Morrison said the government would not budge on independent financial support for the airline, and that any assistance will be provided on a sector-wide basis.

Senior figures have held crisis talks today. Picture: James Ross/AAP

Australian airlines around the world have copped a battering during the coronavirus crisis, with Virgin already suspending all but one domestic route. The airline has also stood down 8000 workers and had its credit rating downgraded. Qantas has stood down 20,000 employees.

Currently, Virgin Australia has just one plane in the air each day, leaving 129 grounded.