Qantas shares spiked within minutes of Virgin Australia entering voluntary administration on Tuesday morning -- but have subsequently slumped after interest grew in acquiring its rival.

Fifteen airlines have signed up to a new initiative that will see the government partially underwrite agriculture and fisheries airfreight routes previously cut off by the coronavirus crisis.

Tigerair staff have been reassured that they won’t be made redundant despite parent company Virgin Australia slipping into administration on Wednesday.

Melbourne Airport’s chief executive has said that a reborn Virgin Australia should make the Victorian capital the cornerstone of its new network.