VIRGIN Australia has entered a trading halt this morning pending further announcement about its future.
The airline announced on the ASX trading would be ‘temporarily paused’ from 9.52am AEDT.
It comes amid reports the airline is seeking $1.4 billion in financial support from the federal government in order for it to survive the coronavirus crisis, which continues to heavily impact the aviation industry.
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It could involve the government becoming a part-owner if it can pay back the loan within three years.
Treasurer Josh Frydenberg declined to comment on the specifics of the government’s negotiations when pressed on Tuesday morning.
“I won’t comment on the specifics of approaches to the government by particularly companies… that’s commercial in confidence,” Mr Frydenberg told Sunrise.
“But the government’s made very clear we support a sustainable, viable aviation sector. That’s why we’ve already made announcements of more than $700 million in support measures for that particular sector and we believe having two airlines in Australia is a good thing.”
Virgin Australia recently cut its workforce by 80 per cent and its capacity by 90 per cent after strict border measures were implemented by various governments worldwide.