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Virgin Australia placed in indefinite trading halt by ASX

Published: (Updated: ) in Australian News by .

Trades of Virgin Australia stock have been halted indefinitely, after the Australian Stock Exchange (ASX) made the rare decision to suspend it from quotation.

Trades of Virgin Australia stock have been halted indefinitely, after the Australian Stock Exchange (ASX) made the rare decision to suspend it from quotation.

The suspension was announced just before trading began today by ASX listings compliance adviser Neel Bhowmick.

Grounded Virgin Australia aircraft are seen parked at Brisbane Airport in Brisbane

"The securities of Virgin Australia Holdings (VAH) Limited will be suspended from quotation immediately under Listing Rule 17.2 at the request of VAH, pending the release of an announcement regarding its ongoing financial assistance and restructuring alternatives," the ASX statement read.

Virgin Australia has been put in a dire financial situation by the coronavirus pandemic, which has effectively grounded close to its entire fleet.

Virgin Australia had been placed in a trading halt on Tuesday at its own request, which was scheduled to be lifted this morning.

The suspension from quotation means there is no deadline for the trading halt.

There are fears the airline could go into administration if it does not receive a bailout from the federal government.

But Treasurer Josh Frydenberg said while the airline was a value asset to Australia, the government could not be solely responsible for keeping it alive.

Virgin Australia jets sit idly.

"We want to see our major airlines continue to operate in Australia. But, at the same time, the government is not in the business of owning an airline," he told Today.

"Our focus has been on industry-wide support, providing relief from various taxes and charges and other regulatory measures and both Virgin and Qantas have been the beneficiary of that."

Mr Frydenberg said Virgin should be looking to its major shareholders for financial help.

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Deputy Prime Minister Michael McCormack insists he wants all of Australia's airlines to come through the other side of the pandemic.

"We realise it's going to be very, very tough for them. COVID-19 is having a devastating effect on regional, domestic and international travel and we want to make sure that our aviation industry is protected," he told parliament.

700,000 bottles of hand sanitiser is set to arrive in Sydney today

Meanwhile, a Virgin Australia flight landed in Sydney from Hong Kong overnight – but it carried no passengers, just 700,000 bottles of hand sanitiser to stock up Australian supplies.

Before the pandemic hit, Virgin Australia employed more than 10,000 people.

Source: 9News https://www.9news.com.au/national/virgin-australias-fate-could-be-decided-soon/f464fe48-d902-47d0-ac99-4f6fe9bd3e46

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