Shadow Transport Minister Catherine King says the government's 'hands off' approach will undoubtedly lead to 'scaled-back Virgin Australia'. Private equity fund Bain Capital is set to be the airline’s new owner after New York hedge fund Cyrus Capital Partners withdrew its offer.
Bain Capital said it was prepared to honour the $450 million of entitlements owed to workers once it took control.
Despite this guarantee, Ms King told Sky News Virgin jobs and regional routes would inevitably be lost.
“That’s an outcome that’s incredibly disappointing from the public’s point of view," she said.
“Loss of routes, particularly in regional Queensland, will be absolutely devastating for tourism and I think that’s what we’re going to see, a much scaled-back Virgin.”
She said Labor encouraged the Morrison government to take an equity stake in Virgin and prevent it entering administration.
“But the government’s obviously decided to take a very hands-off approach and this is the result,” she said.
Image: News Corp Australia
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