The federal government has provided some $1 billion in financial assistance to the aviation sector as part of its response to the coronavirus pandemic. However, government sources have indicated that providing Virgin Australia with a $1.4 billion loan will not be on the agenda.
Amongst other things, the government is concerned that bailing out a specific company would set a precedent. The sources also state that the government would facilitate the entry of another airline to the Australian market if Virgin collapses, as it wants to ensure that there are two strong domestic airlines in the post-virus environment.
From The AFR:
