Now considering a move to Melbourne.
https://www.afr.com/street-talk/virg...0200416-p54kal
Virgin Australia is considering moving its corporate head office and Velocity Frequent Flyer businesses to Melbourne as part of its bid to save the company.
It is understood Virgin's board has discussed packing up the company's Brisbane headquarters and moving south, in a move that would impact an estimated 1500 employees.
Melbourne: home of the MCG and... Virgin Australia? Joe Armao
Likewise, the plan would see it also take Velocity Frequent Flyer to Melbourne, which would impact another 200 or so jobs.
It is understood Virgin reckons moving both arms to Melbourne could have a material impact to the company's bottom line, at a time when CEO Paul Scurrah and his team are trying to slash costs to ensure the airline owner survives COVID-19 and what could be a prolonged economic downturn.
While there are plenty of balls in the air at Virgin, the move is one option that could help the airline re-set its cost base for the long-term.
It is understood a Melbourne move has come up in discussions with creditors and investors as something under consideration. It is seen as a "Hail Mary" option and nothing has been finalised, sources said.
Paul Scurrah, CEO of Virgin Australia. Peter Braig
It comes as Virgin is fighting for survival and seeking measures to quickly reduce its $5 billion debt load. It is in talks with lenders, shareholders, potential investors and, perhaps most importantly, the government, in an effort to secure funds.
Virgin is believed to be seeking about $1.4 billion in fresh capital to spearhead a financial restructure.
It went to the government seeking that amount a fortnight ago, and is exploring other avenues.
Its existing shareholders have
declined to tip in fresh funds, as Street Talk revealed on Wednesday, and its bankers are now trying to rustle up interest among other potential investors.
Virgin had $4.8 billion in interest-bearing liabilities at December 31 and $900 million in unrestricted cash and short term investments. Its next debt maturity is a $US350 million ($546 million) bond due in October 2021.
Its shares are in a trading halt while the various discussions take place. The company's equity value was $720 million prior to the halt, although it is widely recognised by major shareholders that their investments will be wiped out as part of the looming restructure.