Ben Butler reports in The Guardian (13.5.20) on the Palaszczuk government’s attempts to secure the financial future of Virgin Australia and its Queensland-based workforce, as the state’s Treasurer considers forming a consortium bid to salvage the debt-ridden airline.
‘The Queensland government says it will bid for Virgin Australia in an attempt to keep the stricken airline’s headquarters in Brisbane and support the state’s tourism sector, which has been savaged by the coronavirus crisis.
‘The treasurer, Cameron Dick, said the state was willing to buy equity in a resurrected Virgin Australia, but could also invest through other methods including a loan or guarantee.
‘The government has appointed the state-owned Queensland Investment Corporation to manage the bid, which has been dubbed “Project Maroon” – the state’s colour when it plays New South Wales in State of Origin rugby league games.
‘Dick said Queensland intended to bid as part of a consortium but did not name any potential partners.
‘Other reported bidders for the airline, which collapsed into administration last month, include consortiums led by the mining magnate Andrew “Twiggy” Forrest and private equity group BGH Capital, as well as specialist airline investor Indigo.
‘Dick said Australia needed two airlines and the government was determined to avoid a repeat of the situation after the collapse of Ansett, when Qantas enjoyed a near-monopoly.’
- Queensland government to bid for Virgin Australia to support state’s tourism sector »
- Queensland Government moves to buy stake in coronavirus-hit Virgin Australia »
- ‘Severe and long-lasting impacts’: Queensland braces for economic fallout amid Virgin administration »
- Queensland and NSW governments in Virgin bailout stoush amid deepening concern over coronavirus tourism shutdown »
- NSW and Queensland fight over future headquarters for Virgin Australia – if it survives »
- Virgin is $7 billion in debt, so why is NSW so keen to snatch it from Qld? »
- Queensland may throw more money at Virgin to ‘fend off’ other states »
- State will ‘strike a hard bargain’ in its bid for Virgin, vows Treasurer »
- Virgin Australia investment bid by State Government will ‘need to stack up’, Queensland Treasurer says »
- Virgin Australia: Queensland government could join multiple bids for airline »
- Virgin Australia investment by the Queensland Government may not be the best use of taxpayer money »
- The Queensland Government has put a $200m bid on Virgin Australia, but how would it work and will it stack up? »
- Final two Virgin bidders provide a best-case scenario for Brisbane HQ »
- Virgin administrator fears bidders ‘may walk away’ »
- Sold! Virgin’s new owner promises to inject capital, save thousands of jobs »
- Cutbacks may keep Virgin Australia alive for now, but its long-term prospects are bleak »
- Ready for takeoff: Virgin back in the sky after creditors’ vote »
- Virgin boss warns more jobs likely to go without JobKeeper extension »
- Virgin stands down 800 ground crew as Covid hits flights, JobKeeper blamed »
- Qantas delivers masterclass in how to shake money out of anxious governments »