Virgin Australia has frozen the accounts of its 10 million Velocity frequent flyer members after the airline collapsed and entered voluntary administration on Tuesday.
"We've made the difficult decision to pause all redemptions for an initial period of four weeks, effective immediately," a statement on the Velocity website says. The company has appointed insolvency experts at Deloitte to restructure the airline and find new owners to keep it flying, but stressed that Velocity had not collapsed.
"Although Velocity is owned by the Virgin Australia Group, it is a separate company and it is not in administration," a Velocity statement said. Customers with forward bookings and those with travel credits for cancelled bookings also face uncertainty as they wait for news about the administration process.
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Foreign shareholders 'responsible' for Virgin Australia: Cormann | Sky News AustraliaFinance Minister Mathias Cormann says Virgin Australia's 'substantial foreign shareholders' had 'the first responsibility' to bail out the airline. \n\nMr Cormann said the government wished to 'continue to see two airlines in Australia' but believed the government had provided substantial support 'on an economy-wide or sector-wide basis'.\n\n'There is a clear public interest to have competition in the aviation sector,' he said. \n\n'Administration offers an opportunity to deal with the challenges Virgin had been dealing with since before the COVID-19 pandemic.'\n\nImage: Getty\n\n\n MathiasCormann Same here. USA, Holland, France. Its not up to us to bail parasite Branson out. MathiasCormann They set the standard with GM. A bail out was never going to happen. MathiasCormann But if they don’t then the airline should be restructured and recapitalised as a majority government owned airline to ensure that rapacious Qantas has effective competition. Most Australians would see that this is a time when ideology has to be set aside.
Source: SkyNewsAust - 🏆 7. / 78 Read more »
Govt in 'risky' game of chicken with Virgin Australia | Sky News AustraliaThe government is playing a high “political risk” game of chicken with Virgin, according to Sky News Political Editor Andrew Clennell. \n\nVirgin Australia on Tuesday entered voluntary administration, putting 16,000 jobs and Australia’s two airline aviation system at risk. \n\nThe government previously rejected a $1.4 billion bailout proposal and on Monday evening knocked back a request for a $100 million grant to keep the company afloat for an additional couple of weeks. \n\nMr Clennell said the government was taking a gamble. \n\n“It does seem a bit of a trend for the government to want to do more for small and medium businesses than for big business. \n\n“I don’t know how it will be received if there is no buyer. If there ends up being a buyer down the track then its all good. The government will be proven to do the right thing. \n\n'They might have some political concerns around it if the thing just goes under completely.' aclennell The “gamble” will emerge after the administrators have reorganised/removed Virgin’s 5b in debt. If they’re unable to find investors then the government would be gambling. At the moment it seems this outcome is the most responsible. aclennell This airline is foreign owned aclennell
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Virgin Australia set for voluntary administrationSeveral private equity firms are already sniffing around looking to potentially buy Virgin Australia out of administration, which will see some of its debts wiped and aircraft leases renegotiated Barbarians at the Gate! Be great if we could all have our debts wiped Poorly managed airline. On the other hand buy QAN shares
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Labor calls on Morrison Govt to save thousands of Virgin jobs | Sky News AustraliaBill Shorten is calling upon the Morrison Government to ensure 'Virgin doesn't fall over'. \n\nMr Shorten said hundreds of families of Virgin workers are facing significant financial crises if the airline collapses. \n\nThe former opposition leader said Australia is facing the reality of becoming a one-airline nation. \n\n'If Virgin collapses a lifeline to the regions will be cut,' he said. \n\n“You’d have to believe in unicorns if you think that one large airline won’t see airfares go up,” he said. \n\nImage: News Corp Australia billshortenmp Labor have really lost their way when they want taxpayers to bail out overseas investors who pay zero tax. billshortenmp GovernmentIsTheVirus billshortenmp What about the rest of the businesses Bill. Nobody seems to give a damn. You have to be a big multi national to get any help. The whole country is going to be ruined. It is time to open up Australia
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NSW government flags conditional Virgin bailout | Sky News AustraliaThe New South Wales treasurer has flagged the possibility the state government may offer Virgin Australia financial support if it moves its headquarters to the state.\n\nDominic Perrottet confirmed to Sky News he had been in discussions with the cash-strapped airline over its future and would like to see them become a tenant at the new Western Sydney Airport when it opens.\n\nThe Queensland government already offered $200 million - on several conditions - including it keeps its headquarters in Brisbane.\n\nBut the offer comes well short of the $1.4 billion the airline has sought out to survive the coronavirus crisis.\n\nImage: News Corp Australia\n\n Before the Corona Virus Virgin Airlines $Billion in turnover & payed NO corporate Tax in Aust Now Aust tax payers R asked to subsidise Virgin? And Qantas supports Labor zero emissions by 2050 Hmm that would shut down flights, Will Today U get a taste of zero emissions Qantas No bailouts let it go into liquidation it was failing before the virus hoax
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NSW government negotiates with Virgin to relocate HQ to Sydney: Treasurer | Sky News AustraliaSky News host Sharri Markson has revealed NSW Treasurer Dominic Perrottet is in negotiations with Virgin Australia regarding “financial support” but the airline would “have to have the HQ of both Virgin and Tiger at the Western Sydney Airport site”.\n\nMr Perrottet told Sky News exclusively he has raised the possibility of Virgin moving its headquarters to the new aerotropolis facility at the new airport and it is “obviously part of the discussions we are having at the moment” regarding a potential bailout.\n\nThe Queensland Government have announced it would hand the airline $200 million in a bid to boost and maintain competition in Australia’s airline industry.\n\n“Virgin should have their headquarters for both Virgin and Tiger in Sydney,” Mr Perrottet said.\n\n“I’m always open for businesses right across the country to relocate to New South Wales and create jobs here in our state”.\n\nImage: Getty If the NSW government wants to commit treason like the Queensland government then they should go ahead. Nothing like bailing out foreign owned corporations in exchange for business deals while your constituents lose their livelihoods. If the NSW Government has hundreds of millions dollars spare to bale out a foreign airline why cant they feed and house thousands of people who are homeless in NSW. Dominic Perrottet in negotiations or Alan Joyce....are we going to have Virgin terminals at Mascot or are the poor people being encouraged to slog it to western Sydney on a bus
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