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Perth Airport seizes several Virgin Australia aircraft over unpaid debt claims

Heavy vehicles and machinery were used to block the aircraft from taking off on Friday.

Grounded Virgin Australia aircraft seen parked at Brisbane Airport.
Grounded Virgin Australia aircraft seen parked at Brisbane Airport. Source: AAP

Perth Airport has seized several Virgin Australia aircraft in an attempt to recoup debt operators claim they are owed from the carrier.

News footage from above Perth Airport showed heavy machinery, a car and stair trucks blocking the aircraft near terminal gates to prevent them from taking off. 

The airport's operator said the planes were being held as collateral until the company paid "significant" outstanding airfield and terminal fees.

"We want to work with Virgin and the administrator to ensure the airline can work through its current problems," the airport said in a statement.

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But it added that the airport also needed to "protect its own interests".

The airline went into voluntary administration on Tuesday with more than $5 billion in debt, becoming the largest carrier so far to buckle under the strain of the COVID-19 outbreak.

The government had refused a $1.4 billion loan request to bail out the majority foreign-owned company, which had already made 1,000 workers redundant and stood down 8,000 of its 10,000 pilots, flight attendants and ground crew.

Virgin Australia is currently flying a skeleton schedule under its regular management team as administrators seek a buyer for the operation.

The bankrupt airline's administrators, Deloitte, are liable to pay leases on its aircraft starting 28 April.

The administrators are seeking court orders for an extension of up to four weeks from their appointment to decide if leased planes were required for continuing operations of the business. 


2 min read

Published

Source: AFP, SBS




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