Major step forwards for Virgin Australia
Virgin Australia’s creditors have voted in favour of purchase by US private equity group Bain Capital, in a major step forwards for the airline.
The Administrators of the Virgin Australia Group confirmed the outcome of the second meeting of creditors, with creditors accepting 10 separate deeds of company arrangement (DOCAs).
Virgin Australia Group CEO and Managing Director Paul Scurrah said: “This is an important outcome for Virgin Australia, which brings us closer to exiting administration and allows us to focus on the future. It’s vital for Australia to have two major airlines for consumer choice, value airfares and to help support the recovery of Australia’s robust tourism sector after this crisis is over.
“While we can feel very proud that we have got to this point, the impact of COVID-19 remains very challenging for our business and industry. These are tough times and we must remain focused and adapt to this new environment. It’s been an incredibly tough journey for our people and they should be commended for how they have handled themselves. I’m pleased today gives us some more certainty around the company’s future.”
Virgin Group CEO Josh Bayliss commented: “We look forward to working with Bain to revive and rebuild Virgin Australia into one of country’s leading companies once again. The successful vote at the creditors’ meeting is a significant moment for the airline as it can now plan for the future and start work on getting back into the air and providing much needed competition for Australian travelers. We are thankful for the hard work of the Administrator, Paul Scurrah and the management team in securing this successful outcome. Virgin remains very focused on the Australian market and see the revival of the airline as a priority for our group.”
Virgin Founder Richard Branson added: “With the deal agreed, we will focus on building our airline back up even better than it was before. Virgin Australia has achieved a great deal in its first 20 years and I am extremely proud of the impact it has made on the Australia. We are excited to create that next chapter together with Bain and the airline’s wonderful team.”
Head over to Virgin Australia to find out more.