Canberra, 2 April 2020 – Virgin Australia could be one of the largest victims of the COVID-19 pandemic and global travel downturn after the Australian government rejected a bailout request by them to the tune of $1.4billion. Instead the government has suggested that Virgin Australia should seek to increase equity from its partners which include Singapore Airlines, HNA Group and Etihad Airways.
The carrier has already grounded 53 aircraft from their fleet, and is currently only operating domestic flights within Australia at the current time. The whole international schedule serving 20 destinations has been suspended indefinitely.
In real terms Virgin Australia have estimated debts of $3billion, and only $1billion in the bank, which could be used up in as little as 3 months at the current rate. Even before Coronavirus wreaked Havok on the aviation industry Virgin Australia was already in a precarious position. Could this be the last straw that broke the camel’s back?
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