The largest carrier airline Virgin Australia collapsed on Tuesday, under the coronavirus episode, which has shattered the global airline industry. In an announcement to the Australian Stock Exchange, Virgin said that it has planned to keep operating flights even after submitting the keys to the administrators. Virgin has terminated all its international routes in order to prevent the spread of COVID-19. In the current times, the airline has begun to operate within limited domestic routes, as well as international flights, taking financial help from the government so that Australians staying away from home could return back to their families.
CEO Paul Scurrah in the statement said, “Our decision today is about securing the future of the Virgin Australia Group and emerging on the other side of the COVID-19 crisis. Australia needs a second airline and we are determined to keep flying. So we are confident that this will result in a restructuring being achieved in a short period of time.”
The airline was more than Aus$5 billion ($3.2 billion) in debt and had appealed for an Aus$1.4 billion loan to stay afloat, but the government refused to bail out the majority foreign-owned company.
For this abrupt collapse, jobs of many workers, flight attendants, ground crew, and pilots are at risk to which Strawbridge said that the administrators would “seek to preserve as many of those jobs as possible”.