Your questions answered: What happens if Virgin collapses?
THE perilous state of Virgin Australia Group has created several uncertainties about what would happen if Australia's second-largest carrier collapses.
To help simplify the issue, we've put together a quick question and answer session.
What will happen if Virgin collapses?
The collapse of Virgin would be the largest blow to Australia's aviation industry since the failure of Ansett in 2001. 10,000 Virgin Australia staff would be sacked and thousands more put at risk if the half-a-billion-dollar airline folded. Virgin says the lack of competition would also send ticket prices sky-high.
If Virgin collapses what will happen to my flight credits and Velocity points?
Virgin boss Paul Scurrah is refusing to discuss what would happen if the company collapsed, but it's fair to say customers' Velocity points and flight credits would not be guaranteed. Millions of Velocity points and flight credits are likely to be at grave risk.
What will save the airline?
Virgin's last hope of survival rests with the Australian Government providing financial support. Virgin's shareholders, Etihad Airways, Singapore Airlines, China's Nanshan Group, HNA and Sir Richard Branson's Virgin Group are facing their own problems and are unlikely to inject cash - leaving the carrier's fate in Canberra's hands.
I have a flight booked, what should I do?
There's not much you can do. If you hold a ticket for travel up until June 30 you can change or cancel your booking and request a travel credit without incurring any fee. For people travelling after June 30, normal fare rules and fees would apply.
Originally published as Your questions answered: What happens if Virgin collapses?