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Virgin Australia reportedly set to enter voluntary administration

April 20, 2020
2 min read
Virgin Australia reportedly set to enter voluntary administration
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Virgin Australia is preparing to enter voluntary administration. According to sources close to the matter, the airline has been unable to cope with the financial strain caused by the ongoing coronavirus crisis, coupled with its history of financial woes.

According to sources reported by the Sydney Morning Herald, the airline's board of directors met on Monday, and the announcement of it going into administration was "imminent."

Previously, the airline had appointed accounting firm Deloitte to look at restructuring options. The firm is expected to run Virgin Australia's administration processes, including trying to find it new owners in order to keep it operating.

The Australian government previously refused to offer the airline any additional financial support, including the airline's request for a $1.4 billion loan. Now, it plans to wait out the insolvency processes to see if there is any money it could loan to help to keep Virgin flying.

Virgin Australia and a board member declined to comment.

Virgin Australia is reported to be about $5 billion in debt. The coronavirus and its upending of the aviation industry has left Virgin Australia operations cut. Through June 14, Virgin Australia had announced that it would end all international flying and significantly reduce its domestic network.

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Virgin Australia is the second-largest carrier in Australia, behind flag carrier Qantas. It employs around 10,000 people directly and another 6,000 indirectly, according to the Sydney Morning Herald.

The airline is 90% owned by Etihad Airways (20.94%), Singapore Airlines (20.09%), Richard Branson's Virgin Group (10.42%) and Chinese conglomerates HNA (19.82%) and Nanshan (19.98%). The remainder of the airline is owned by investors.

Featured image by AFP via Getty Images

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TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
3 / 5
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10XEarn 10x points on eligible hotels and car rentals booked through the Credit One Bank travel partner site
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    Earn 10,000 bonus points after spending $1,000 on eligible purchases in the first 90 days and redeem for a $100 statement credit, gift cards, or travel

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  • Annual Fee

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  • Recommended Credit
    Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

    Fair/Good

Why We Chose It

The revamped Wander Card from Credit One Bank earns cardmembers up to 10 points per dollar spent on eligible travel purchases. With no foreign transaction fees, the card is also great for international travel. However, points earned from this card can only be used at a fixed value, so it may not be the best option for those striving to get maximum value from their rewards.

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  • This card has no foreign transaction fees and earns up to 10 points per dollar on travel purchases through the Credit One Bank travel partner site.

Cons

  • While cardholders can earn a significant amount of points on travel purchases, there isn't any way to redeem points from the Wander Card for maximum value (beyond 1 cent per point).
  • Earn 10,000 bonus points after spending $1,000 on eligible purchases in the first 90 days and redeem for a $100 statement credit, gift cards, or travel
  • Earn 10x points on eligible hotels and car rentals booked through the Credit One Bank travel site
  • Earn 5x points on eligible travel, dining, and gas
  • Earn 1x points on all other purchases
  • Redeem your reward points for statement credits, gift cards, merchandise, flights, hotels, and more
  • With $0 Fraud Liability, you won’t be responsible for unauthorized charges
  • Free Online Credit Score and Credit Report summary, terms apply
  • If you are a Covered Borrower under the Military Lending Act, you may get a different offer
  • See Rates & Fees