Tigerair staff have been reassured that they won’t be made redundant despite parent company Virgin Australia slipping into administration on Tuesday.
The Sydney Morning Herald reported that employees were given the reassurance that they were an “essential part of its low-fares offering” in a conference call.
In March, the business made all pilots at Tigerair redundant, leading to questions about its long-term future.
The Flight Attendants Association of Australia told the newspaper that Tigerair employees were “apprehensive rather than relieved. A lot of current Virgin and Tiger employees are ex-Ansett, so there’s a lot of trepidation”.
After the airline’s collapse into administration, TWU national secretary Michael Kaine urged the federal government to sit down with the trade unions representing the 16,000 Virgin workers.
“The future of these workers and the options available to the travelling public are the biggest issues facing the government now that Virgin has entered voluntary administration. Unions stand ready to work with the government on helping to devise a solution on Virgin’s future to ensure good jobs, a decent reliable service for the public and a return for taxpayers,” Kaine said.
“There is still time to rescue Virgin and for the federal government to take a bold move to ensure that the Australian economy is ready to bounce back when the crisis abates. Governments around the world are taking the difficult decisions to protect their economy and jobs and we urge the Australian government to follow suit.”
The airline group confirmed its collapse on Tuesday morning, after the announcement leaked the previous evening. The business was struggling to service a $4.8 billion debt pile with little revenue coming in.
After the announcement, Deloitte administrator Vaughan Strawbridge and Virgin chief executive Paul Scurrah revealed more than 10 parties have expressed interest in recapitalising the company, which they described as being “very sophisticated parties”.
For more of our in-depth coverage, click the links below:
- Velocity Frequent Flyer points have been paused, but won’t be cancelled;
- Sir Richard Branson hits out at the Australian government as he pays tribute to Virgin staff;
- Melbourne Airport’s chief executive has said that a reborn Virgin Australia should make the Victorian capital the cornerstone of its new network;
- Virgin’s administrator, Deloitte, insisted there are ‘several’ interested parties in the running to save the business, thought to include BGH Capital, a private equity operator run by Ben Gray.