By the time you read this on Wednesday the situation may be clearer, but at the time of writing on Tuesday Virgin Australia shares had been suspended on the Australian Stock Exchange.
The suspension was to allow financial restructuring talks to take place. It is unlikely that the airline will collapse entirely. It is seeking a A$1.4 billion Government loan which would convert into equity if not repaid.
If this fails, the existing lenders are likely to agree a debt for equity swap which would see the airline survive but the existing shareholders wiped out.
One problem is that the shareholder group is not exactly in great shape itself. You are looking at HNA, the struggling Chinese conglomerate, Etihad Airways, which has been perfectly happy to see its other overseas investments fail, Singapore Airlines, which has just received its own bailout and Nanshan Group, owner of China’s Qindao Airlines. Virgin Group itself controls only 10% of the airline.
Virgin Australia is not out of cash – it is sitting on A$900 million – but this is only enough to last 3-6 months given the interest on its existing A$5 billion debt pile.
You can read the Sydney Morning Herald story here.
How to earn Virgin Points from UK credit cards (February 2024)
As a reminder, there are various ways of earning Virgin Points from UK credit cards. Many cards also have generous sign-up bonuses.
You can choose from two official Virgin Atlantic credit cards (apply here, the Reward+ card has a bonus of 15,000 Virgin Points):
Virgin Money is offering double points on spending until 14th April (£5,000 cap) to new customers when you apply for the Virgin Atlantic Reward+ Mastercard. Click here to learn more.
You can also earn Virgin Points from various American Express cards – and these have sign-up bonuses too.
American Express Preferred Rewards Gold is FREE for a year and comes with 20,000 Membership Rewards points, which convert into 20,000 Virgin Points.
The Platinum Card from American Express comes with 40,000 Membership Rewards points, which convert into 40,000 Virgin Points.
Small business owners should consider the two American Express Business cards. Points convert at 1:1 into Virgin Points.
(Want to earn more Virgin Points? Click here to see our recent articles on Virgin Atlantic and Flying Club and click here for our home page with the latest news on earning and spending other airline and hotel points.)