Phil Coorey in the AFR today (who is usually pretty reliable) says the government is going to let VA collapse, although it wants a two airline market and will assist in a new entrant.
The federal government is likely to facilitate the entry of a new carrier into the domestic market, rather than bail out Virgin Australia, should the struggling airline not survive the coronavirus crisis.
...Senior government sources told
The Australian Financial Review that when the government insisted repeatedly that Australia must still have two strong airlines on the other side of the coronavirus catastrophe, that did not necessarily include Virgin.
It would not grant Virgin's wish for a $1.4 billion loan because it did not want to be saddled with an equity stake in a business that was already doing it tough before the virus crisis.
...
But should the airline fail, "steps will be taken to get another carrier to enter the market'', a government source said. "Barriers would be lowered.''
And something that should send a chill through every Australian traveller...
The source said that if Virgin did go under, a likely entrant would be Irish budget carrier Ryanair.
https://www.afr.com/politics/federal...0200401-p54fv6