Virgin Australia Holdings Ltd said on Tuesday it entered voluntary administration to recapitalise the business and emerge in a stronger financial position after being battered by the coronavirus crisis and a high debt load.
) said on Tuesday it entered voluntary administration to recapitalise the business and emerge in a stronger financial position after being battered by the coronavirus crisis and a high debt load.
Virgin said the current management team led by chief executive Paul Scurrah would continue to run the business and it would still operate scheduled domestic and international flights to help transport essential workers, maintain freight corridors and return Australians home. The airline employs 10,000 people directly and 6,000 people indirectly in competition with larger rival Qantas Airways Ltd , which would have a virtual monopoly in Australia if Virgin stopped flying.
Virgin, which grew rapidly after the collapse of the country’s then-second largest carrier Ansett in 2001, has a share of around one-third of the Australian domestic aviation market.
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