Virgin Australia stand-off at Perth Airport as planes seized as collateral against 'unpaid debts'

[mfcorey1]

Perth Airport is using heavy machinery and company vehicles to block a number of Virgin Australia aircraft from taking off over what it says are significant unpaid debts.

In a statement, the airport said while it was working with the airline to get through the coronavirus crisis, it had to protect its own interests.

Perth Airport says the debt-laden airline owes it $16 million in outstanding invoices for airfield and terminal use charges.

The airport has taken the planes as security, or what is known as a lien, on the debt.

Footage and images from the airport show a front-end loader and airport cars blocking planes on the tarmac.

Perth Airport said this was standard practice.

"Maintaining a two-airline system in Australia post-COVID-19 is absolutely essential for the aviation and tourism sectors, and the broader economy," a spokeswoman from Perth Airport said.

"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 [fly-in, fly-out] sector.

"While Perth Airport is working with the Virgin administrators, it also needs to protect its own interests.

https://www.msn.com/en-au/news/australia/virgin-australia-stand-off-at-perth-airport-as-planes-seized-as-collateral-against-unpaid-debts/ar-BB138iRG?li=AAgfYrC

[msongs]

1. amazing how these billionaires & filthy rich corporations never saved any for a rainy day nt

day.

[brush]

2. So some "billionaires" apparently don't have billions in actual CASH.

[customerserviceguy]

3. Who does the Perth Airport

think they're going to sell the aircraft to, if they legally seize them?

[denem]

4. Answer: Dumbfuckistan USA.

[customerserviceguy]

5. Our airlines

already have too many aircraft for the business they have, and that's with the Boeing jets that have been grounded for months.

I think we've seen the end of mass commercial aviation. It will probably cost around the price of a first-class seat to ride in coach in the near future.

[denem]

6. So tell me

those 737 MAX contracts have not been cancelled. And whos is going to fly on the widow makers? 737 NGs are looking like a good deal to me. Cheap as chips. Yummy.

[customerserviceguy]

7. I think the airlines

are still in the mindset of "things are going to be OK sooner rather than later." And with Congress, which depends on commerical aviation, shoveling dedicated rescue money to them, they can stay in that rosy optimism. But, nobody's going to need a lot of aircraft for quite a few years.

Even after essentially everybody's been vaccinated against C-19, the economic repercussions of this time will leave a lot of people unable to afford to fly for quite some time. Also, I expect businesses to cut back on travel in the future, now that they find that they can make their big deals over electronic conferencing.