The Queensland state government has offered Virgin Australia a conditional $200 million bailout ($127.3 million, €117.1 million £101.9 million).
One of the conditions include Virgin keeping it’s headquarters in the Queensland capital of Brisbane. Other conditions include the Australian Government backing the airline, debt restructuring, shareholders and bondholders “doing their bit” and ongoing regional flights.
Queensland’s Minister for State Development told ABC News, “Queensland can’t do this on its own. If we are going to have two national airlines at the other side of this pandemic, then all governments need to come together to ensure that is the case. We know that on routes where there is only a single carrier, the cost of flights can be 20 to 25 per cent more than where there is competition. To have competition means that prices are lower and that’s in everyone’s interests.”
The offer of the money comes as reports emerge that several private equity firms are interested in buying the airline if it goes into administration.
The Australian government has previously refused a conditional loan to the airline.
The Victorian state government has told ABC it currently has no plans to help the airline.
The Australian Capital Territory government won’t support an unconditional bailout and any assistance would be contingent on Canberra being integral to the Virgin network.
The Tasmanian state government sees a bailout of the airline as matter for the Federal Government
The South Australian state government said it was working with the Federal Government “and the ball was in the Commonwealth’s court.”
The Western Australian state government supports federal funding.