Virgin Australia
Virgin Australia

NEW DELHI: Australia's second biggest airline, Virgin Australia, collapsed on Tuesday, putting 16,000 jobs under threat as the cash strapped carrier announced that it entered voluntary administration to recapitalise the business after being battered by the coronavirus pandemic, which has crippled the global airline industry.

The move came after the airline, which suspended almost all flights last month following widespread travel bans, failed to secure A$1.4 billion ($887.60 million) loan from the federal government.

In a statement, Virgin Australia said the group has entered into voluntary administration to "recapitalise the business and help ensure it emerges in a strong financial position on the other side of the COVID-19 crisis". The group's board of directors has appointed accounting firm Deloitte as voluntary administrators.

Virgin Australia CEO Paul Scurrah said COVID19 had triggered the worst aviation crisis in history. "The events of the past 24 hours have been incredibly challenging for the wonderful people of the Virgin

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