Updated.
April 14, 2020 14: 15:38
Virgin Australia has actually entered into a trading stop ahead of an anticipated announcement.
Key points:
- Virgin Australia might not get a Federal government bailout but is thinking about other financial options to make it through
- The Government says it is working with Qantas and Virgin to ensure their essential domestic routes get subsidised
- Air travel specialists fear Virgin will have a hard time to endure beyond six months at most
The Federal Government has actually been under pressure to assist the having a hard time airline company, which has actually grounded its aircraft and stood down countless employees due to the fact that of the coronavirus pandemic.
Virgin Australia president Paul Scurrah has urged the Federal Government to assist it stay afloat with a $1.4 billion loan.
Without that cash, aviation industry specialists have forecasted the airline company will battle to survive beyond September
There are also ideas that the airline company is thinking about an option which might include reorganizing its financial obligation if the Government does not step in with financial assistance.
” Virgin Australia has actually asked for a trading stop as it continues to consider continuous concerns with regard to financial support and reorganizing options,” a spokesman for Virgin Australia stated.
” This has actually occurred due to the unprecedented COVID-19 crisis which has particularly impacted the air travel sector.
” Virgin Australia has been keeping the air fair in Australia for 20