Original Story Daily Mail April 18 2020
- 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
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.
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.