Virgin Australia announces another trading halt due to coronavirus ahead of potential bailout

Troubled Virgin Australia halts trading ahead of an announcement – with reports airline and Qantas set for a ‘massive’ deal on domestic flights

By Kylie Stevens For Daily Mail Australia and Australian Associated Press

Published: 02:17 BST, 14 April 2020 | Updated: 02:39 BST, 14 April 2020

Virgin Australia has halted trading of its stock as the airline wait to find out whether it will receive a federal government bailout to keep flying domestically.

The airline halted trading on the ASX Tuesday ahead of an announcement to the Australian stock exchange later in the day.

The trading halt comes amid reports Virgin and its biggest rival Qantas are closing in on a multi-million dollar deal with the federal government to support domestic flights between capital cities.

‘Virgin Australia has requested a trading halt as it continues to consider ongoing issues with respect to financial assistance and restructuring alternatives,’ a Virgin Australia statement read on Tuesday morning.

‘This has arisen due to the unprecedented COVID-19 crisis which has particularly impacted the aviation sector.’

Grounded Virgin Australia aircraft at Brisbane Airport last week. The ailing airline, along with Qantas, could be about to receive government funding to keep domestic flights running during the COVID-19 pandemic

Both airlines have copped a battering during the pandemic amid fears Virgin could soon go into administration.

Virgin Australia chief executive Paul Scurrah has previously urged the federal government to help the airline afloat with a $1.4 billion loan.

Virgin cited ongoing discussions involving financial assistance and restructuring alternatives.

The airline also emailed its frequent flyer members to thank them for their support and understanding during the challenging times.

Velocity is set up in a way that safeguards member value by having a trustee that looks after the interests of members,’ the email says.

Prime Minister Scott Morrison said any public funding for aviation would be spread across the entire sector.

Virgin Australia has suspended all but one domestic flight, weeks after grounding its entire international fleet. Pictured: Virgin Australia cabin crew greet a chartered Virgin Australia flight as it arrives at Hobart International Airport

‘We haven’t been picking any winners or picking any favourites here,’ he told Nine.

‘What we have been doing is ensuring sector-wide support, which has been already quite significant for the aviation sector.’

The government has already confirmed it will provide financial support for regional routes and stump up $100 million to address the cashflow crisis among a dozen small airlines.

Deputy Prime Minister Michael McCormack is now working directly with Qantas and Virgin on ways to subsidise flights between major cities.

‘They have already worked together on international routes that are vital not just for bringing people home or getting people to their homes, but also to support much-needed freight and the transfer of medical supplies,’ Mr Morrison said.

Labor has welcomed plans for the government to cover the cost of some trunk routes, but said it would not be enough to save Virgin from going broke.

Opposition transport spokeswoman Catherine King said thousands of Australian livelihoods were at stake.

Pictured is Virgin Australia’s deserted self-service check-in area at Melbourne Airport

‘The Morrison government must stop this piecemeal approach to our aviation industry and actually extend an urgent lifeline to Virgin Australia to support the airline and its 10,000 employees through this crisis,’ she said.

‘If Scott Morrison and Michael McCormack do not, they are making an active decision to see one of our major airlines fail.

‘Such a result will have a devastating impact on Virgin’s employees and on our tourism, freight and services sectors, and will slow our recovery once the COVID-19 outbreak passes.’

 

:

Read more at DailyMail.co.uk