Virgin Australia has entered voluntary administrations despite Sir Richard Branson offering Necker Island for collateral, with Deloitte’s who are looking for a buyer.
Sir Richard owns 10% of the Australian airline and he is now trying to save Virgin Atlantic from entering administration.
Branson offered his £80m private Caribbean Island as collateral as the airline sector has been crippled by the global pandemic.
Virgin Australia CEO Paul Scurrah said, “Our decision today is about securing the future of Virgin Australia and emerging on the other side of the Covid-19 crisis.
“Australia needs a second airline and we are determined to keep flying.”
Sir Richard said on Twitter, Monday his employees had “virtually unanimously” voted to take a wage reduction to save their jobs.
Analysis by ForwardKeys, the travel analytics company, reveals that the Covid-19 crisis has brought the aviation industry to its knees.
International airline seat capacity fell to just 23% of what it was in the first week of April last year. Just 10m seats were still in service, to facilitate essential travel, compared with 44.2m a year ago.