Virgin Australia has entered voluntary administration and frozen its Velocity rewards program but customers have been assured frequent flyer points and customer credit for cancelled flights will be protected during the airline’s sale process.
Deloitte was unveiled as Virgin’s voluntary administrator today and will now comb through the books to identify potential asset sales to pay down debt, or an outright sale of the airline to another party.
Deloitte said as many as 10 suitors were circling the debt-laden carrier.
It is unclear what will happen to Virgin’s 10,000 staff but chief executive Paul Scurrah said the company was focused on “preserving as many jobs as we can”.
Deloitte said its aim was to help the struggling carrier emerge “in a stronger position on the other side of the COVID-19 crisis” .
The shape, size and function of Virgin would depend on what the eventual buyers want, Deloitte said.