Perth Airport takes possession of Virgin planes

Airlines condemn Perth Airport for locking up Virgin Australia planes over unpaid bills.

Virgin Australia aircraft parked on the tarmac at Brisbane International Airport. Picture: Patrick Hamilton/AFP

Airlines have condemned the actions of Perth Airport, after a number of Virgin Australia’s aircraft were surrounded with machinery including bulldozers to stop them leaving.

The airport took the action on Friday in response to the airline’s failure to pay its bills.

Virgin Australia went into voluntary administration on Tuesday, after being unable to secure the financial assistance needed to keep it afloat.

On Friday administrators’ Deloitte revealed Virgin Australia owed $6.8bn to creditors, including $71.2m to landlords such as airports.

The aircraft locked by Perth Airport, are not currently being used by Virgin Australia to operate government-subsidised domestic flights or charter flights within Western Australia.

A Virgin Australia spokeswoman said they were aware Perth had restricted access to their aircraft but there was no impact to scheduled flights.

“The administrator is dealing directly with Perth Airport on the matter,” she said.

A spokeswoman for Perth Airport said they were working cooperatively with Deloitte to try to help the carrier come through the coronavirus crisis.

“Maintaining a two-airline system in Australia post-COVID-19 is absolutely essential for the aviation and tourism sectors, and the broader economy,” said the spokeswoman.

“Virgin has significant outstanding invoices from Perth Airport for airfield and terminal use charges – money the airline has already collected from its passengers and the FIFO sector.

“While Perth Airport is working with the Virgin administrators, it also needs to protect its own interests.”

The spokeswoman said they had taken liens over a number of Virgin aircraft, which she described as a “standard practice in these situations”.

“The aircraft affected are not being used for current FIFO or interstate operations and have been parked at Perth Airport for some time now. There will be zero impact on Western Australia’s resources sector,” she said.

“At this point in time, we continue to facilitate Virgin’s FIFO flights through Terminal 2 while we try to secure an agreement with the administrators. Virgin continue to fly around 180 flights a week through Terminal 2.”

A Qantas spokesman condemned the action by Perth as “extraordinary behaviour”.

“Protecting your interests is one thing but parking a bulldozer in front of an aircraft while saying you’re ‘working to secure an agreement’ is ridiculous,” he said.

“It’s no way to treat a customer of 20-years. This kind of action is deeply worrying for all users of Perth Airport.”

Qantas and Perth are currently engaged in legal action over the airline’s alleged failure to pay $11m in fees.

Airlines for Australia and New Zealand (A4ANZ), which represents Qantas, Virgin Australia, Rex and Air New Zealand, said the behaviour of Perth Airport was “galling in light of the COVID-19 crisis”.

“The aviation industry in Australia, and the economy more broadly, is currently facing its

biggest challenge in over a century,” said A4ANZ chairman Graeme Samuel.

“Perth Airport has made it clear today that they are not willing to be part of Team Australia to navigate through this crisis.”

No other airports have taken possession of Virgin Australia aircraft. The airline has grounded most of its fleet, as it navigates the coronavirus crisis with the help of administrators.