Potential Buyers Circle Virgin Australia
- Apr 30, 2020-
It’s been more than a week since Virgin Australia went into voluntary administration.
You might remember that Australia’s second-biggest airline was already struggling with billions of dollars of debt before the cancellation of almost all its flights due to Covid-19 meant ticket revenue pretty much dried up.
Now administrators Deloitte have revealed 20 potential buyers are circling – with eight of them signing non-disclosure agreements (which suggests they’re serious contenders).
Interested parties have been given until mid-May to make an indicative bid, and Deloitte says it’s confident of a sale being concluded by the end of June.
It’s a nervous waiting game for the carrier’s 10,000 staff – most of whom have been put on leave. And it is widely expected that whoever does buy Virgin Australia will operate a slimmed down service focused on its more profitable routes - which will of course mean job cuts.
For now, the airline continues to operate during the voluntary administration process - with 64 return domestic services each week, some domestic charter flights and government-supported international flights to Hong Kong and Los Angeles.