Etihad Airways, which owns 21% of Virgin Australia, has said it was unable to provide further funding to prevent the airline’s entry into administration but remains open to discussions on a possible relaunch.
Australia’s second-largest carrier plans to continue operating a vastly reduced schedule while administrators from Deloitte work to find a buyer for the airline.
Virgin Australia has entered voluntary administration and the airline’s management is proposing to keep as much of the airline intact as possible when it reemerges under a new ownership structure.
Virgin Group chairman Richard Branson is saying Virgin Atlantic and Virgin Australia will need government support if they are to survive the COVID-19 crisis and keep competition alive in markets that would otherwise become effective monopolies.
Virgin Australia appears likely to enter voluntary administration this week amid the COVID-19 crisis as its options for acquiring the additional funding it needs have almost disappeared.
Virgin Australia is reducing domestic capacity by 90% and temporarily grounding 125 aircraft. Low-cost subsidiary Tigerair Australia has also suspended flights.
The Virgin Australia Group is cutting more capacity on domestic and international routes following the spread of COVID-19 coronavirus, although the airline has been less affected by the crisis than many of its major regional rivals.
Virgin Australia and All Nippon Airways (ANA) have formally signed a new codeshare partnership, starting some codeshare routes by the end of this month with others to follow.
Virgin Australia and Virgin Atlantic have been given the green light to enter into a long-term cooperation agreement on flights between Australia and the UK and Ireland.
Virgin Australia is cutting two international and two domestic routes from its network, including the suspension of flights between Melbourne and Hong Kong.
This week: Spirit orders up to 150 Airbus A320neos; Qantas and Virgin secure one Haneda slot each; Aeroflot to open Krasnoyarsk hub; Etihad and Saudia extend codeshare partnership and more.
The two airlines are seeking approval to cooperate on services between Australia and the UK and Ireland via mutual connection points. The partnership could result in the launch of new international routes.
Senior network planners from some of the Pacific’s leading carriers will be seizing the opportunities available at the 25th World Route Development Forum.
Virgin Australia's Russell Shaw speaks to Routesonline about the carrier's network plans, including the importance of China and the strong competition on trans-Tasman routes.
This week: Virgin Australia names new CEO; Hainan to open Dublin’s second link to China; Qantas officially cancels A380 order; Thomas Cook mulls airline sale; Hop! to be rebranded and more.
