The Australian Government welcomes news of the successful completion of the Virgin Australia voluntary administration process.
Creditors today voted overwhelmingly in support of the Bain Capital proposal that will see Virgin continue to operate as Australia's second major domestic airline.
We recognise this has been a difficult period for employees. We understand that Bain Capital has agreed to cover employee entitlements for both ongoing staff and those in impacted roles. Travel credits will also be honoured.
The Government's preference has always been for a market-led solution. The voluntary administration process offered that market-led opportunity to restructure and recapitalise Virgin Australia into a viable and profitable commercial entity.
The Government recognises the efforts of the administrator, Deloitte and the constructive engagement that we have had with them and other interested parties throughout this process via Mr Nicholas Moore, former Macquarie Group CEO.
Domestic airlines will play an important role in supporting the economic recovery following the COVID-19 pandemic.
The Government is continuing to support the domestic aviation sector by providing more than $1.3 billion across a range of initiatives, including ensuring domestic services and essential air services to regional communities continue.
We have also directed the ACCC to monitor the prices, costs and profits of the sector for three years and to provide quarterly reports to Government that will assist in protecting competition in the domestic passenger airline market for the benefit of all Australian airline travellers.
