As Virgin Australia is placed into voluntary administration, The West Australian's Aviation Editor Geoffrey Thomas says he has great confidence the airline “will fly out of this”. The future of travel in Australia hangs in the balance after Virgin Australia was placed into voluntary administration on Tuesday morning.
If the failing airline does not continue, Qantas will become the solitary full-service national carrier serving domestic routes.
According to Mr Thomas, while “it will take two to three months to get a new investor on board,” it is unlikely the company will collapse.
Mr Thomas said Virgin Australia is “a fabulous service and a great product” and he was “not surprised” 10 investors had already expressed interest in the airline.
“The Queensland Government and the NSW Government are in a bidding war for the relocation for the rebirth of Virgin,” he told Sky News host Peta Credlin.
The company is in their current position because they “over-extended” and went from “a one aircraft fleet, the 737, and ended up with six different types of aircraft and three different classes instead of one," he said.
Mr Thomas said the administrator will work to manage the debt by re-negotiating the leases on the aircraft and restructuring the airline’s secured and unsecured debt.
He said the airline was ultimately “a real national asset” and he hoped the company would be bought by Australian investors.
Image: News Corp Australia
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