Virgin Australia administrators warn of failure without urgent taxpayer support

The administrators of Virgin Australia is asking the Morrison government for financial help, warning that a lack of taxpayer support is putting the sale of the stricken airline at risk. In a letter sent to senior ministers, including the prime minister, on Tuesday, the administrators, partners at accounting firm Deloitte, asked for measures to help Virgin Australia through both an immediate cash crisis and a longer period during which flying is expected to continue to be restricted. They said the sale of the airline was in the balance unless the government provided clarity and certainty about its financial future. Virgin Australia faces a cash crisis and is due to run out of cash by the end of the month, but any sale needs to be approved by creditors who could meet as late as August. With air travel likely to remain heavily restricted for months, it also faces difficult conditions even if administrators, led by Vaughan Strawbridge, can successfully sell the airline to one of the two remaining bidders, Bain Capital or Cyrus Capital Partners. To combat the immediate crisis, Strawbridge and his team have asked the government to guarantee tickets sold to date and for the remaining portion of their administration. This would give travellers confidence their tickets would be honoured if the airline was to collapse or new owners take over, sources said. The administrators also want to avoid what economists have dubbed the “cliff” that will occur if jobkeeper payments are turned off at the end of September as scheduled. They asked the government to extend jobkeeper coverage for Virgin Australia workers for an additional six months. Story lists other demans.<br/>