Perth Airport blocks Virgin Australia aircraft due to unpaid debts

27 April 2020 (Last Updated April 27th, 2020 12:29)

Perth Airport in Australia has stated that it has blocked four Virgin Australia aircrafts due to unpaid dues.

Perth Airport blocks Virgin Australia aircraft due to unpaid debts
Perth Airport has blocked four Virgin Australia aircraft due to unpaid dues. Credit: Bahnfrend.

Perth Airport in Australia has stated that it has blocked four Virgin Australia aircraft due to unpaid dues.

ABC news stated that the aircraft have been blocked by trucks as the airline owes A$16m to the airport.

In a statement, Perth Airport spokesperson said: “Perth Airport is working cooperatively with Virgin’s administrators to try to help the airline come through the current coronavirus crisis.

“We want to work with Virgin and the administrator to ensure the airline can work through its current problems. Maintaining a two-airline system in Australia post-Covid-19 is absolutely essential for the aviation and tourism sectors, and the broader economy.

“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.”

The airport has stated that it has ‘taken liens’ over the aircraft, a practice which is followed in such situations.

The aircraft which were seized were not being used for any fly-in fly-out (FIFO) or interstate operations and have been at the airport for some time.

The airport claimed that this measure would not affect the state’s resources sector.

Perth Airport is currently facilitating Virgin FIFO flights via Terminal 2 and is currently in talks with the administrators for an agreement.

Last week, Virgin Australia Holdings entered voluntary administration seeking bankruptcy protection.

The company, which is yet to secure required assistance, is continuing to seek financial support from state and federal governments and other parties.