The other factor is the sheer uncertainty of the scale of the pandemic. It's one thing to bail out an airline one month into an at-least 6 month long travel ban, bailing out an airline that needs capital to restart operations when there is clear light at the end of the tunnel is another.
If Virgin can hold on until it looks like domestic operations will imminently return to normal, then never say never. Otherwise, sadly I can't see the government preventing the collapse of the company.