Coronavirus Impact: Virgin Australia Planes Seized in Perth Airport Over Unpaid Debt Claims

The planes have been being held as collateral till Virgin Australia paid “significant” excellent airfield and terminal charges.

Several Virgin Australia planes have been seized Friday in what an airport operator mentioned was an try to recoup debt from the service, which collapsed underneath the pressure of the coronavirus pandemic this week.

News footage from above Perth Airport on Australia’s west coast confirmed heavy equipment, a automobile and stair vehicles blocking the plane close to terminal gates to stop them from taking off.

The airport’s operator mentioned the planes have been being held as collateral till the corporate paid “significant” excellent airfield and terminal charges.

“We want to work with Virgin and the administrator to ensure the airline can work through its current problems,” the airport mentioned in a press release.

But it added that the airport additionally wanted to “protect its own interests”.

The airline went into voluntary administration on Tuesday with greater than Aus $5 billion ($3.2 billion) in debt, turning into the biggest service up to now to buckle underneath the pressure of the COVID-19 outbreak.

Australia’s authorities had refused an Aus $1.4 billion mortgage request to bail out the bulk foreign-owned firm, which had already made 1,000 employees redundant and stood down 8,000 of its 10,000 pilots, flight attendants and floor crew.

It had additionally suspended all worldwide routes and scrapped all however certainly one of its home routes after Australia shut its borders to restrict the unfold of COVID-19.

Perth Airport chief government Kevin Brown instructed nationwide broadcaster ABC that 4 of the airline’s planes had been seized, none of which have been presently in service.

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