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| Virgin Australia slumps into administration | |
| (about 7 hours later) | |
| Virgin Australia has confirmed it has entered voluntary administration - making it Australia's first big corporate casualty of the coronavirus pandemic. | Virgin Australia has confirmed it has entered voluntary administration - making it Australia's first big corporate casualty of the coronavirus pandemic. |
| The country's second-largest carrier cut almost all flights last month following wide-spread travel bans. | The country's second-largest carrier cut almost all flights last month following wide-spread travel bans. |
| It was already struggling with a long-term A$5bn (£2.55bn; $3.17bn) debt. | It was already struggling with a long-term A$5bn (£2.55bn; $3.17bn) debt. |
| The airline is now seeking new buyers and investors, after failing to get a loan from Australia's government. | The airline is now seeking new buyers and investors, after failing to get a loan from Australia's government. |
| Virgin Australia chief executive 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. | Virgin Australia chief executive 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. |
| "Australia needs a second airline and we are determined to keep flying." | "Australia needs a second airline and we are determined to keep flying." |
| Meanwhile, Sir Richard Branson - whose Virgin group is a part-owner of Virgin Australia - has offered a Caribbean island as collateral to help get a UK government bailout of Virgin Atlantic. | Meanwhile, Sir Richard Branson - whose Virgin group is a part-owner of Virgin Australia - has offered a Caribbean island as collateral to help get a UK government bailout of Virgin Atlantic. |
| Shares had been suspended in the firm for the past fortnight as it struggled to find a survival plan. | Shares had been suspended in the firm for the past fortnight as it struggled to find a survival plan. |
| Canberra refused a request from the company for a A$1.4bn loan, but in the past month had announced around A$900m in support for all local airlines. | Canberra refused a request from the company for a A$1.4bn loan, but in the past month had announced around A$900m in support for all local airlines. |
| Virgin Australia has turned just two statutory profits in the past decade. | Virgin Australia has turned just two statutory profits in the past decade. |
| It is part-owned by a number of entities including the UAE government, Singapore Airlines, China's HNA, and Sir Richard Branson's Group. | It is part-owned by a number of entities including the UAE government, Singapore Airlines, China's HNA, and Sir Richard Branson's Group. |
| It employs about 10,000 people directly and another 6,000 through ancillary businesses. | It employs about 10,000 people directly and another 6,000 through ancillary businesses. |
| Consulting firm Deloitte announced it had appointed as administrator on Monday. It will try and restructure the firm's debt, pay off creditors and find a buyer - with private equity groups expected to be interested. | Consulting firm Deloitte announced it had appointed as administrator on Monday. It will try and restructure the firm's debt, pay off creditors and find a buyer - with private equity groups expected to be interested. |
| Consumer groups and local politicians have voiced concerns that unless the airline is resurrected, national flag carrier Qantas will hold a near-monopoly in Australia. | Consumer groups and local politicians have voiced concerns that unless the airline is resurrected, national flag carrier Qantas will hold a near-monopoly in Australia. |
| Air travel is crucial in the vast continent where distances between coastal capital cities make flights the only practical way to travel quickly domestically. | Air travel is crucial in the vast continent where distances between coastal capital cities make flights the only practical way to travel quickly domestically. |
| Virgin Australia had previously held around 31% of domestic flights, while Qantas controlled around 58% of the market. | Virgin Australia had previously held around 31% of domestic flights, while Qantas controlled around 58% of the market. |
| The long-term loss of the airline will also be seen as a major blow to Australia's tourism industry - a big GDP driver. | The long-term loss of the airline will also be seen as a major blow to Australia's tourism industry - a big GDP driver. |
| Before the shutdown, Virgin Australia had flown about 130 aircraft to 41 destinations - mainly domestic routes, but also international services including to New Zealand, Bali, Fiji, Tokyo and Los Angeles. | Before the shutdown, Virgin Australia had flown about 130 aircraft to 41 destinations - mainly domestic routes, but also international services including to New Zealand, Bali, Fiji, Tokyo and Los Angeles. |