Virgin Australia burning up cash, fast

Virgin Australia is rapidly running out of cash, with aviation experts warning it has six months at most to find a solution before it collapses.

ABC News reports from Australia that the warning comes as the company's chief executive Paul Scurrah said the prospect of new airlines entering the Australian market to take the place of Virgin was unlikely, meaning Qantas would be left with a monopoly.

This week Virgin Australia called on the Morrison Government to bail it out to the tune of A$1.4 billion — something that some senior cabinet ministers appear reluctant to do.

The question many, including Virgin's rival Qantas boss Alan Joyce, are asking is why should government bail out badly managed airlines?

Scurrah told ABC News the airline was asking for "temporary support, not a handout".

"We want to work with government on how best to design this but it will be a repayable loan," he said.

A new airline entering to take the place of Virgin was unlikely, Scurrah said, given many other international carriers were also in trouble because of the coronavirus-related travel bans.

"We will end up with a temporary monopoly if this is the case and that's not helpful. No business under this kind of pressure and with this level of uncertainty can survive indefinitely."-Photo: ABC News