https://www.dailymail.co.uk/news/art...-bail-out.html
Now the CHINESE are considering buying Virgin Australia after the Morrison government refused to bail out embattled airline
- Chinese airlines are considering purchasing the struggling Virgin Australia
- Chinese-owned carriers are in talks about buying the Queensland-based airline
- The Morrison government refused to give the company a $1.4billion bailout
- A joint approach from two Chinese carriers could save the airline from collapse
By
ISABELLE STACKPOOL FOR DAILY MAIL AUSTRALIA
PUBLISHED: 16:50 BST, 17 April 2020 | UPDATED: 17:21 BST, 17 April 2020
Chinese airlines are considering buying embattled Virgin Australia after the Morrison government refused to bail out the struggling airline.
China Southern Airlines, China East Airlines and Air China are all in discussions about purchasing the carrier in a last-minute takeover in a bid to stop its 'catastrophic' collapse.
Sources told the
Courier Mail that the Chinese government-owned airlines were yet to make a formal offer.
However any offer could provide a much-needed lifeline to Virgin Australia and the market-led cash solution the Morrison government urged them to find.
Chinese-owned airlines are considering purchasing Virgin Australia (pictured) to stop the company from collapsing amid the coronavirus crisis Virgin Australia wanted the Federal Government to hand over $1.4billion to save them from collapse but the money has not been forthcoming.
A joint approach from two Chinese carriers could see the foreign-owned Virgin Australia Group prevented from falling into voluntary administration.
The move would likely require approval from the Foreign Investment Review Board before a solution could be reached.
It is believed Australians would lose millions of Velocity Points and flight credits if the company went into administration.
On Friday night it was revealed that the Queensland government will offer the troubled airline $200million towards a bailout in the hope that other states will follow suit.
The company's corporate headquarters are located in Brisbane but the head office and Velocity Frequent Flyer businesses may potentially move to Melbourne.
The managing director of the Virgin Australia Group, Paul Scurrah, on Wednesday refused to speculate about voluntary administration.
A joint approach from two Chinese carriers (pictured) could save the struggling company On Thursday Virgin Australia asked the ASX to suspend its shares for seven days and revealed it was in confidential talks to save the company from collapse.
'These discussions have continued over the last two days including discussions which remain confidential and are incomplete,' Virgin said in a statement to the ASX.
'The company is not presently in a position to make an announcement to the market with respect to these matters.'
Virgin Australia has already suspended all but one domestic route, stood down 8,000 workers and had its credit rating downgraded.
The Federal Opposition called on the government to provide financial support for Virgin Australia yesterday.
Labor Senator for Queensland, Murray Watt, said it was 'an issue of national interest' to keep Virgin Australia afloat.
Senator Watt said the government should take an equity stake in Virgin Australia and that the airline was a 'proud Queensland company' essential to the state's tourism.
'Maintaining two airlines is critical for a functioning tourism industry and jobs,' he said.
Prime Minister Scott Morrison previously said any public funding for aviation would be spread across the entire sector.
The Morrison Government have refused Virgin Australia's plea for a $1.4billion bail out