By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Reading: Which Airline Will Replace Virgin Australia?
Share
Sign In
Notification Show More
Font ResizerAa
Font ResizerAa
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Signin Sign In
Follow US
Copyright © Travel Radar Media Ltd. 2025 | All Rights Reserved
Travel Radar - Aviation News > News > Which Airline Will Replace Virgin Australia?

Which Airline Will Replace Virgin Australia?

Travel Radar
Last updated: 7 January 2021 17:01
By Travel Radar Staff
5 Min Read
Share
Source: James Alcock
SHARE

Administrators for Virgin Australia are trying to look for someone to buy the airline with nearly $7 billion worth of debt attached to it.

Summary
How much is owed?Alliance Airlines could be the solutionThere are more than enough suitorsWe at Travel Radar hope for Virgin Australia that this dream will become a reality and the long-loved airline makes it through these unprecedented times.
The future of the budget airline is in question as administrators scramble to find a suitable buyer. Source: James Alcock

How much is owed?

10,247 creditors (people who are owed by the company) have been found by administrators in charge of the airline, with 9,020 of this being the airline’s very own employees. $450 million is owed to staff.

The cost of going into administration alone is between an estimated $20 to $30 million. Meanwhile, Perth Airport has blocked four Virgin Australia aircraft from leaving as they try to ensure they are paid an owed $16 million by the airline.

Alliance Airlines could be the solution

Experts in aviation have predicted that Virgin could be replaced by the Queensland charter group Alliance Airlines.

Alliance Airlines could be the next budget airline to replace Virgin Australia. Source: Alliance Airlines

If voluntary administration was unsuccessful and the airline collapsed, there would be a huge gap to fill in the domestic flight market in Australia. This would leave rival Qantas a gap too large to fill.

Virgin Australia has shared that their main goal is not to go into liquidation, but rather to be sold or recapitalised.

Neil Hansford, strategic Aviation Solutions chairman, said that Alliance Airlines could very well be the airline to replace Virgin Australia.

“With the right sort of funding or government guarantees, (Alliance Airlines) could upgrade their fleet and get reasonable services going,” Hansford said in a statement. “There’s plenty of ample crew . . . plenty of engineering around.”

Founded in 2002, Alliance Airlines has a Queensland fleet of 50 aircraft.

Alliance Airlines is already providing aircraft and crew to Virgin, currently operating flights from Brisbane, Gladstone, Bundaberg, Moranbah, and Port Macquarie.

Alliance Airlines has $300,000 on the line, which is subject to being lost as the process for Virgin Australia’s administration develops.

Competitors for Alliance Airlines would be the Qantas-owned airline Jetstar, the only other budget airline left in Australia’s aviation market.

There are more than enough suitors

Aside from Alliance Airlines, Vaughan Strawbridge, Virgin’s administrator, stated that they were “in excess of ten companies with a keen interest in being part of the restructuring.”

This might not be the end of Virgin Australia, with 10 interested suitors looking into taking over the airline. Source: Webjet

Before Virgin went into administration, Tom Youl, an IBISWorld aviation analyst, said that the Australian government would prefer two airlines running. While the Australian government neglected to give Virgin a bailout package for their significant debt, they would be quick to replace the airline if it were to actually collapse.

“Air New Zealand would be a good choice,” Youl said, when asked which airline would be suitable to replace Virgin.

If Virgin Australia officially collapses and there are no airlines to fill the gap it leaves, it has been predicted that Qantas would then have the ability to significantly increase their flight prices.

“Virgin and Qantas were in competition with each other which kept costs lower,” Youl stated. “Budget carriers offer a service to people who don’t care about all the extras full-service airlines like Qantas provide. If another budget carrier came in, there wouldn’t be much competition.”

“This is a tough day for our airline . . . (but) we’re certainly not collapsing,” Paul Scurrah, Virgin Australia CEO, shared. “It is our absolute intention to emerge stronger. Australia needs a second airline and we are determined to make sure we are that airline.”

We at Travel Radar hope for Virgin Australia that this dream will become a reality and the long-loved airline makes it through these unprecedented times.

You Might Also Like

easyJet, Bristol Airport Celebrate 80 Million Passenger Milestone
Wizz Air Rushes To Get Staff Out Of Ukraine
WestJet to begin flights to Mexico City
Pegasus 737-800 Flapless Landing
Bombardier: Challenger 3500 Aircraft Delivery, The 1000th in the sky
Share This Article
Facebook Twitter Email Copy Link
What’s your thoughts?
Love0
Sad0
Happy0
Angry0
Travel Radar
ByTravel Radar Staff
Follow:
Articles from guest contributors wishing to remain anonymous are credited to this account. Want to contribute to Travel Radar either in-name, or anonymously? Get in touch: [email protected]
Previous Article Turkish Airlines How has Turkish Airlines dealt with COVID-19?
Next Article Piper L4A Grasshopper in the War Memorial in Seoul, South Korea The War Memorial in Seoul, South Korea
Subscribe
Login
Notify of
guest

guest

1 Comment
Oldest
Newest Upvoted
Inline Feedbacks
View all comments

Stay Connected

FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe

Trending News

Emirates © Saim Munib on Unsplash
Emirates and flydubai Sign MoUs for ‘Dubai cashless strategy’
Aircraft Airline Economics Airlines Aviation Technology Travel Radar
East Midlands Airport , UK © EMA Airport
Data-led Vision for East Midlands Airport’s Commercial Potential
Airline Economics Airports Aviation Technology Travel Radar
President Donald Trump and VP Mike Pence
Air Traffic Control Tower Unmanned for 5 hours at Burbank Airport amid Government Shutdown
Airports Aviation Incidents & Accidents
Alpen Air tecnam P2012 Traveller Aircraft over Munich
Munich Airport Faces Halts due to Drone Sightings
Airports Breaking News Incidents & Accidents
An Emirates plane lands on the tarmac with a large city skyline in the background filled with high-rise buildings.
Emirates Enhances Accomodations for Passengers with Accessibility Needs
Airlines Travel
//

Travel Radar is the leading digital hub for all things aviation and air-travel. Discover our latest aviation news, aviation data, insight and analysis.

Discover

  • Latest News
  • Subscribe
  • Weekly Digest
  • Contact Us
  • Privacy Policy
  • About Us
  • Advertising
  • Media Coverage
  • Press & Events
  • Join Our Team
  • Our Brands

Signup to our Newsletter!

And get the latest aviation news via our weekly news digest!

© Travel Radar Media Ltd. 2015-2025 | ISSN #2635-0696 | Trademark #UK00003579704
wpDiscuz
adbanner
Welcome to the TR Community!

Sign in to your account

Not a member? Sign Up