On Tuesday, Virgin Australia - a major partner of Etihad's - said that it had entered into voluntary administration after the Covid-19 crisis forced it into insolvency
Abu Dhabi’s Etihad was unable to provide financial assistance to Virgin Australia as a result of having to deal with its own pressures amid the Covid-19 pandemic, the airline said in a statement.
On Tuesday, Virgin Australia – a major partner of Etihad’s – said that it had entered into voluntary administration after the Covid-19 crisis forced it into insolvency.
In a statement sent to Arabian Business, an Etihad spokesperson said that the company “is disappointed Virgin Australia has had to enter voluntary administration due to the unprecedented challenges and consequences of the Covid-19 pandemic.”
“Over recent weeks we have worked closely with the company and all key stakeholders to try and find a solution that would have avoided administration for Virgin Australia, but unfortunately did not succeed,” the spokesperson said. “Having to deal with the impact of the Covid-19 crisis on our own business, we were unable to provide additional financial support in the current circumstances.”
Etihad is Virgin Australia’s largest shareholder.
“Australia is an important market for Etihad and our partnership with Virgin Australia has provided significant commercial benefits for both carriers,” the spokesperson added. “We hope that the administration will allow for some form of resumption of service and remain open for construction discussions on a potential re-launch of the company.”