Fate of flight credits, jobs revealed as Virgin’s new owner confirmed

Millions of dollars in customer flight credit, Velocity Points and thousands of aviation jobs have been secured with Bain Capital officially endorsed as the new owner of Virgin Australia.

On Friday creditors endorsed Bain's plan to resurrect the airline and end four months in administration.

Bain Capital, an American investment giant founded by U.S. Presidential candidate Mitt Romney, now has full control over the running of Australia's second-largest airline.

Deloitte administrators endorsed Bain on June 26 as the company best placed to save the airline and provide a return to creditors - a recommendation endorsed by those creditors on Friday.

The victory for Bain will ensure about $650m in customer flight credit and 6000 aviation jobs are protected.

Virgin Australia will this month relocate its headquarters from Bowen Hills to South Bank, where it will occupy five levels in Flight Centre's Southpoint tower. COVID-19 forced Virgin into administration in April owing 12,000 creditors more than $7bn. 

The Transport Workers Union National Secretary Michael Kaine welcomed the result.

"This is a new beginning and an important day for Virgin and for Australian aviation," he said.

"I want to congratulate Virgin workers who have been instrumental in getting us to the point where Virgin has now been rebooted and is on a plan to get back to flying."

 

Originally published as Fate of flight credits, jobs revealed as Virgin's new owner confirmed



GALLERY: Bundy kids celebrate Book Week

Premium Content GALLERY: Bundy kids celebrate Book Week

From the Very Hungry Caterpillar to Harry Potter, kids let their imaginations run...

Labor accused of giving voters’ private details to unions

Premium Content Labor accused of giving voters’ private details to unions

Personal details of a number of people has allegedly been shared

WHAT’S NEXT: BSL outlines plans for Millaquin upgrades

Premium Content WHAT’S NEXT: BSL outlines plans for Millaquin upgrades

The company will be looking at investing in a new way to get cane across the...