The company’s existing shareholders had lost money even before the coronavirus crisis. Virgin’s share price was only 19 cents one year ago, less than half the value of four years ago. The shares fell to 8.6 cents before going into a trading halt last Tuesday.
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The priority for the government is the welfare of over 9,000 staff and 6,000 contractors as well as the protection of the services so Qantas does not emerge as a monopoly.
Morrison says again and again that he wants two airlines in Australia. That does not mean saving Virgin’s existing shareholders. A voluntary administration, like the one the Ten Network went through in 2017, can keep employees working while owners and lenders suffer their financial pain.
Labor is askin…
Read the full article at: https://www.theage.com.au/politics/federal/why-the-government-isn-t-racing-to-stop-virgin-s-voluntary-administration-20200420-p54ljq.html
