Virgin Australia's fresh bailout call as reserves wane

Virgin Australia’s fast-dwindling cash reserves have rekindled union calls for a government bailout of the stricken airline ahead of a meeting of key creditors on Thursday. They have also spent the past week obtaining court approval to avoid personal liability for the debts the airline continues to run up under their stewardship, in a bid to keep it alive long enough to sell it. He said the administrators expected that “there will likely be a need for interim funding from the end of June, to when the new owner takes control of the business, and they have been developing a range of options accordingly and continue to keep the federal government informed”. “Cashflow is an urgent problem for any airline in the current environment where government restrictions have brought a halt to usual flying schedules,” he told Guardian Australia. “But the government needs to step in to do more to guarantee Virgin’s survival and the future of aviation.” On Wednesday, the federal court granted Strawbridge and the administrators orders exempting them from personal liability for overpayments under the jobkeeper scheme. Wednesday’s orders were the last in a series absolving the administrators of responsibility for most of the debts the airline continues to rack up despite the almost complete grounding of its fleet due to the pandemic. Other members include pilot and engineer unions, airports, aircraft leasing companies and representatives of unsecured noteholders owed bn.