Virgin aircraft lockup ruled out by Sydney, Melbourne, Brisbane airports

Australia’s three biggest airports have ruled out following Perth and Adelaide by locking up Virgin aircraft over unpaid debts.

Perth Airport is blocking four Virgin Australia aircraft from leaving to ensure it is paid $16 million it claims it is owed by the collapsed airline.

Australia’s three biggest airports have ruled out following Perth and Adelaide and locking up Virgin Australia aircraft over unpaid debts.

Four aircraft have been surrounded by heavy machinery in Perth where Virgin Australia is believed to owe $16m, and seven aeroplanes parked at Adelaide have been possessed by the airport over a $10m debt.

The airline went into voluntary administration last week with debts of $6.8bn, including $71.2m owed to 81 landlords.

The bulk of Virgin Australia’s currently grounded aircraft are at Brisbane, Sydney and Melbourne, but those airports told The Australian they would not be taking possession of the planes.

“We are working constructively with all our airline partners through this difficult period,” said a Sydney Airport spokesman.

A Melbourne Airport spokeswoman said it had no plans to do “that sort of thing” because it wanted to see Virgin Australia survive and grow.

“We think Virgin Australia can come back stronger with an even bigger presence in Melbourne,” she said.

Brisbane Airport’s head of media and corporate communications Leonie Vandeven said the facility was committed to working with the administrators “with the hope of seeing Virgin Australia back in the air as soon as possible”.

“Brisbane Airport Corporation continues to provide free parking for all COVID-19 related grounded aircraft on our airfield,” Ms Vandeven said.

An Adelaide Airport spokesman said it recognised it was a very difficult time for Virgin Australia and “its great team of people” but the airport had to act in the best interests of its own business and staff.

“Adelaide Airport Limited has exercised its contractual rights to take possession of seven Virgin Australia aircraft currently parked at the airport,” the spokesman said.

“Virgin Australia has a debt of approximately $10m with AAL for outstanding terminal and airfield fees and charges.

“This is a necessary step for AAL as a major creditor seeking payment of money owed.”

Virgin Australia has confirmed the aircraft locked by Perth and Adelaide Airports are not required for the limited number of services currently being flown by the airline.

A spokesman for administrator Deloitte said some of the aircraft seized by Perth and Adelaide were owned by Virgin Australia while others were leased.

The first creditors’ meeting since Virgin Australia went into administration will be held electronically on Thursday.