Emergency funds offered to airlines in Australia

Published on : Friday, April 17, 2020

In order to maintain key domestic routes across the country Qantas and Virgin Australia have been offered $A165 by the Australian government.

 

In the wake of the coronavirus pandemic both carriers have suspended the majority of operations.

 

 

 

For regional airlines confirmed earlier by officials, the new funds come on top of a A$198 million assistance package as well as a waiver of A$715 million in fees and charges for domestic airlines.

 

 

The carrier have asked the Australian stock exchange to suspend trading of its shares and the latest move is seen as a lifeline for Virgin Australia in particular.

 

After the federal government rebuffed a request for a $A1.4 billion loan its future became uncertain.

 

Five international companies owns Virgin Australia is 90 per cent like   – Etihad Airways, Singapore Airlines, Nanshan Group and HNA, both of China, and Virgin Group.

All have signalled  they will not inject further capital facing their own difficulties.

 

Through the  new funding package Virgin Australia more time to find other investors, with survival unlikely beyond September under current circumstances.

The carrier has cut domestic capacity by 90 per cent and temporarily stood down 8,000 of its 10,000 staff.


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