Adelaide Latest Airport To Attempt Plane Seizures

The COVID-19 pandemic is leaving quite a trail of destruction in its wake and while nowhere near as tragic as the death toll, the toll on international airlines is pretty ugly.

One of the latest victims is Virgin Australia Airlines... which entered voluntary administration this week, equivalent to US Bankruptcy reorganization... reportedly being in the dumper to the tune of an estimated 6.8 billion dollars to some 12,000 creditors.

To many creditors, there are few options but to take their place in line... but others have more coercive tools at their disposal. A number of Australian airports are reported to be seizing VA airplanes that are still operating from their runways.

Adelaide Airport reportedly seized VA aircraft as collateral against unpaid bills. The airport reports that its owed some 10 million dollars by the airline. Prior to that, Perth airport took action, blocking the movement and access to a number of VA jets with by cordoning them off by placing airport vehicles around them.

A Perth airport statement noted that, "Virgin has significant outstanding invoices from Perth Airport for airfield and terminal use charges – money the airline has already collected from its passengers and the FIFO sector. While Perth Airport is working with the Virgin administrators, it also needs to protect its own interests. Perth Airport has taken liens over a number of Virgin aircraft – a standard practice in these situations."

FMI: www.perthairport.com.au, www.virginaustralia.com