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April 20, 2020 20: 07:48
Virgin Australia captain George Kailis has been flying planes for nearly 20 years, but worries for himself and his co-workers as the company looks likely to participate in voluntary administration.
Bottom line:
- Virgin Australia is on the edge of insolvency, with about $5 billion in financial obligation
- Pilots want the Federal Government to step in with a $1.4 billion bailout
- Credit agencies have devalued Virgin’s ranking stating a ‘default’ is most likely
The Morrison Government has continued to hold back assistance for the airline, and regardless of NSW and Queensland’s federal governments arguing about where the business should be headquartered, personal equity companies are circling around.
They are waiting for cash-starved Virgin Australia to enter into voluntary administration, which sources state might occur as soon as Tuesday.
This is a procedure where an insolvent company is put in the hands of an independent individual who can assess the very best path forward for its business owner and creditors.
It is comprehended Virgin Australia’s board will fulfill on Monday night to choose the business’s future, and if an administrator is designated today, it is likely to be Deloitte.
Mr Kailis remembers when Ansett collapsed in 2001, it took years for another airline company to get up and running.
Virgin Blue (Now Virgin Australia) had numerous airplane prepared to start flights, however there weren’t adequate trained pilots offered.
” When Ansett collapsed Virgin was already there with nine airplane and team,” stated Mr Kailis, who i