Virgin Australia Holdings

History

2020: Bankruptcy because of COVID-19

On April 21, 2020 Virgin Australia declared bankruptcy. This airline from the Virgin group of Richard Branson faced serious financial problems because of a pandemic of a coronavirus of COVID-19 which led to strong reduction of number of flights in Australia and other countries.

As reported on the website of airline, Virgin Australia Holdings Limited Deloitte for recapitalization is transferred to external control and to provide stronger financial position of the company upon termination of connected with COVID-19 crisis.

Richard Branson

In Deloitte will aim to attract new investors, to reorganize loans or to find the buyer to save business.

At the same time some time the company will continue to perform flights for transportation of employees of services of life support and return of citizens of Australia home and also will save necessary corridors of freight transportation.

Virgin Australia which debt exceeds 5 billion Australian dollars (about $3.2 billion) asked  the authorities of Australia for  financial aid  in the amount of 1.4 billion Australian dollars earlier, however was refused as  it is the foreign company. Before crisis  in connection with  a coronavirus the airline also had financial problems.

Richard Branson said that one more airline from his group — Virgin Atlantic Airways — will also not endure the crisis connected with a coronavirus pandemic without the state support. According to the businessman, he does everything possible to help the company, but the credit supported by the state is necessary for it.

As notes the agency Bloomberg, Virgin Australia Holdings became the first airline in Asia and the first long-haul carrier which went bankrupt as a result of the outbreak of a coronavirus because of which the company lost almost all income.^[1]

Notes