Future of Aussie aviation in doubt with Virgin's collapse
On the tarmac at Perth Airport last week, unusual images emerged showing aircraft being blockaded by bulldozers, trucks and portable staircases, which were used to prevent the jets from taking off. Officials from Perth Airport said they were taking possession of the aircraft, which belonged to Virgin Australia, the country's second-largest carrier after Qantas. The airport said Virgin owed it A$16mfor use of the airfield and terminal. While other airports have been less confrontational, this bizarre stand-off reflected growing anxieties about the future of Virgin. The airline, which is about 20% owned by Singapore Airlines, has gone into administration after Canberra refused its demand for a A$1.4b lifeline to help it through the Covid-19 crisis, which has forced the company to ground its international fleet and suspend almost all of its domestic flights. The carrier reportedly owes about A$6.8b to creditors. According to Tony Webber, CE of aviation analysis firm Airline Intelligence and Research, Australia's domestic market generates A$1b in annual profit, which should be enough to sustain two well-run airlines. But he said new entrants have historically found it hard to compete with Qantas, which has a dominant position and prime airport locations.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-04-30/unaligned/future-of-aussie-aviation-in-doubt-with-virgins-collapse
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Future of Aussie aviation in doubt with Virgin's collapse
On the tarmac at Perth Airport last week, unusual images emerged showing aircraft being blockaded by bulldozers, trucks and portable staircases, which were used to prevent the jets from taking off. Officials from Perth Airport said they were taking possession of the aircraft, which belonged to Virgin Australia, the country's second-largest carrier after Qantas. The airport said Virgin owed it A$16mfor use of the airfield and terminal. While other airports have been less confrontational, this bizarre stand-off reflected growing anxieties about the future of Virgin. The airline, which is about 20% owned by Singapore Airlines, has gone into administration after Canberra refused its demand for a A$1.4b lifeline to help it through the Covid-19 crisis, which has forced the company to ground its international fleet and suspend almost all of its domestic flights. The carrier reportedly owes about A$6.8b to creditors. According to Tony Webber, CE of aviation analysis firm Airline Intelligence and Research, Australia's domestic market generates A$1b in annual profit, which should be enough to sustain two well-run airlines. But he said new entrants have historically found it hard to compete with Qantas, which has a dominant position and prime airport locations.<br/>
