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Virgin Australia: Queensland Government entity to bid for airline

Virgin Australia: Queensland Government entity to bid for airline

Queensland investment Corporation (QIC)has been appointed to manage the Queensland governments bid for Virgin Airlines according to the state’s new treasurer Cameron Dick.

The State Government’s involvement could be as an equity holder, as a loan to the group, a guarantee or other financial incentive. Their interest is to ensure that the Virgin Australia head office stays in Queensland, as they see the jobs that repairs, maintenance and overhaul of aircraft provide are important to the maintenance of jobs in the tourism sector in the state.

From the reporting of the story in the SMH, it appears the state is looking to be part of a consortium. The Queensland government previously offered AU$200 million before the collapse of Virgin for it to stay based in the state.

2PAXfly Takeout

The aviation industry has a difficult road ahead when it comes to sustainability. It’s going to require a relative revolution in technology, with ‘electric planes’ or hydrogen planes, or some form of jet engine that doesn’t require a carbon based fuel. And that is going to require the development of an alternative to jet engines probably.

It’s a big ask. It will take time to develop.

This move to home grown and manufactured SAF is a first step – maybe even a baby step in a very long road of innovation. In the long run, US$200 million won’t even touch the sides.

On Friday 15 May, we will know who is actually in the race, as that’s the deadline for preliminary bids to be handed into Deloitte’s as the administrators. Binding offer deadline is set for 12 June, and the administrators hope to make a deal with the successful bidder by 21 June and take it to a creditors meeting for approval in early August.

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