Virgin Australia has recently announced that it will go into voluntary administration as the financial strain from COVID-19 takes it's toll. Below is a media release from Virgin Australia detailing the reason why they've taken this approach and the business's plan.
Virgin Australia Holdings Limited (ASX: VAH) (Virgin Australia Group or Group) has entered voluntary administration to recapitalise the business and help ensure it emerges in a stronger financial position on the other side of the COVID-19 crisis.
The decision comes as the Group has continued to seek financial assistance from a number of parties, including State and Federal Governments, to help it through the unprecedented crisis, however is yet to secure the required support.
Virgin Australia will continue to operate its scheduled international and domestic flights which are helping to transport essential workers, maintain important freight corridors, and return Australians home.
The Group’s Board of Directors has appointed Deloitte as voluntary administrators of the company and a number of its subsidiaries. Velocity Frequent Flyer, while owned by the Group, is a separate company and is not in administration.
Virgin Australia Group Chief Executive Officer, Paul Scurrah, 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."
Administrator, Vaughan Strawbridge, said:
“Our intention is to undertake a process to restructure and re-finance the business and bring it out of administration as soon as possible."
Maxim's Travel will keep you updated on the developments in regards to Virgin Australia and it's future and any implications to your business.
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