Aviation

Virgin’s administrators warn bidders may withdraw if govt fails to provide more financial certainty

Virgin Australia’s administrators have urged the federal government to provide more financial certainty for the airline, or risk its two remaining suitors walking away.

The administrators have specifically sought clarity on the future of the JobKeeper scheme, which is set to dry up from 27 September, as well as a guarantee on Virgin’s ticket sales, according to The Australian Financial Review.

Furthermore, The Australian reported that Deloitte is seeking protection of certain landing slots at Aussie airports for 12 months, an extension of subsidised domestic flights until December, a commitment to more federal government patronage on Virgin flights, and a guarantee that the Australian Competition and Consumer Commission will monitor Qantas’ moves closely following the airline’s sale.

According to both media reports, the administrators warned the government that the two remaining bidders – Bain Capital and Cyrus Capital Partners – for Virgin could fail to submit binding offers by the newly-extended deadline of 22 June if it couldn’t provide these financial assurances.

In a statement to Travel Weekly, Deloitte’s Vaughan Strawbridge confirmed the administrators wrote to the government last night asking for clarification of their intentions regarding future and ongoing support for the aviation industry.

“It’s important the bidders understand levels of government support so they know how to structure their bids,” he said.

Strawbridge also noted the administrators were “entirely comfortable with the process we have in place and the sale we are pursuing”.

However, it appears the government isn’t willing to grant the administrators’ wishes, particularly regarding JobKeeper, with Prime Minister Scott Morrison saying the best course of action for Virgin would be more domestic flights.

“If we’re concerned about Virgin employees … it is very important that we open up the domestic borders in this country,” he said, as reported by the AFR.

“We need to get planes flying around Australia, and if you want to see planes flying around Australia … we need to open up these domestic borders.”


Featured image: iStock/BeyondImages



SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Aviation

Scoot launches flights to South Korea’s ‘Hawaii of East Asia’

Want a Hawaiian holiday but got yourself banned on your last trip? Here’s the next best thing.

Share

CommentComments

Aviation

Register for duo, Air New Zealand’s new training and engagement hub and be in the draw to win some epic prizes

Air New Zealand launched its new training and engagement hub called duo, with training, campaigns, incentives the latest brand updates, plus more.

Share

CommentComments

News

Samoa finally announces border re-opening!

The Pacific Island paradise has been working hard to get travel ready and will soon welcome Aussies back to its sunny shores!

Share

CommentComments

Aviation

“Heroic” flight attendant comes to the rescue as woman gives birth on Frontier Airlines flight

We here at Travel Weekly think this woman deserves a raise, or at least an honorary midwifery degree.

Share

CommentComments

Aviation

Are you a ‘local legend’? Bonza is on the lookout for 17 ambassadors!

We feel as though a local legend could either be a dedicated charity worker in the community or someone who frequently drinks beer out of a shoe!

Share

CommentComments

Events

Travel DAZE speaker Matt Endycott from nib chats all things travel! Get your tickets now!

We’ve got Matt Endycott – one of our exciting speakers – to share his thoughts on the industry. Come to Travel DAZE to hear Matt discuss all things travel!

Share

CommentComments

Midweek Interview

Midweek Catch-up with TRAVLR’s Roann Roberts

We love an alliterative name, all the best superheroes and villains have them. We’re not sure where TRAVLR’s head of global travel product sits on that spectrum, though.

Share

CommentComments

Aviation

Qantas relaunches Perth-London route, ramps up trans-tasman flights, secures majority stake in TripADeal

Flights resuming to NZ mean that it will be much easier for the all blacks to come over and quickly beat Australia over and over again.

Share

CommentComments

Hotels

Qatar hotels warned by Fifa over LGBTQ+ discrimination

World Cup controversy has already kicked off before the first match has begun! It’s clear Fifa is taking some lessons from the Australian Open.

Share

CommentComments

News

Japan and Thailand to further ease travel restrictions from 1 June

We thought a nice photo of cherry blossoms in full bloom at Himeji-Jo Castle would be a lot nicer than of some guy getting a swab shoved up his nose for the story.

Share

CommentComments

Hotels

Star Entertainment Group appoints new interim chairman and CEO

Similarly, we’ve appointed our office dog as the new chief zoomies officer, which is a big improvement on her previous role as VP of weeing in the hallway.

Share

CommentComments

Cruise

Aurora Expeditions announces maiden voyage for new ship the Sylvia Earle

The expedition cruise line has revealed some smashing destinations for its new ship’s bid debut, so get ready to go penguin spotting!

Share

CommentComments