Thu. Jun 4th, 2020

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Queensland government to bid for Virgin Australia to support state’s tourism sector

2 min read

The Queensland federal government says it will bid for Virgin Australia in an endeavor to continue to keep the stricken airline’s headquarters in Brisbane and support the state’s tourism sector, which has been savaged by the coronavirus crisis.

The treasurer, Cameron Dick, reported the state was eager to acquire equity in a resurrected Virgin Australia, but could also spend by means of other methods including a financial loan or assurance.

The federal government has appointed the state-owned Queensland Financial investment Company to handle the bid, which has been dubbed “Project Maroon” – the state’s colour when it plays New South Wales in Condition of Origin rugby league video games.

Dick reported Queensland supposed to bid as section of a consortium but did not name any prospective companions.

Other documented bidders for the airline, which collapsed into administration past month, contain consortiums led by the mining magnate Andrew “Twiggy” Forrest and private equity group BGH Cash, as well as expert airline trader Indigo.

Dick reported Australia necessary two airlines and the federal government was decided to stay away from a repeat of the predicament immediately after the collapse of Ansett, when Qantas enjoyed a close to-monopoly.

“We have an chance to retain not only head office and crew team in Queensland, but also to expand careers in the repairs, routine maintenance and overhaul sector and support equally immediate and oblique careers in our tourism sector,” he reported.

“We noticed the punishing enhance to the value of flights immediately after the Ansett collapse, and this federal government will not stand by and allow that transpire once again.”

He reported QIC, led by main government Damien Frawley, experienced produced “a detailed strategy to make certain Queensland is finest positioned for a productive bid”.

“QIC will recommend federal government on all aspects of the bid, including the best partner group, the quantum and construction of the state’s contribution, as well as probity and governance,” he reported.

Frawley reported QIC would handle the state bid separately to its current property of a lot more than $80bn.

“QIC has longstanding conflict management and governance processes in position which permit us to handle the state’s prospective curiosity in VAH [Virgin Australia Holdings], and the bid, whilst separately running other clients’ expense pursuits,” he reported.

He reported a timetable less than which Virgin’s directors want non-binding bids by Friday to make a sale by mid-June was “ambitious”.

“This is a competitive house, but Queensland is a major contender and our discussions with the directors have been earning progress,” he reported.

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