Customers seeking a travel credit or refund from Virgin Australia have been met with the news that they will have to wait a little longer.
A message has been issued to such customers explaining that the Aussie carrier has “temporarily paused issuing new travel credits and refunds while we wait for direction from the administrator”.
According to a report by The Guardian, the reason behind the pause is to protect the administrators – Deloitte partners Vaughan Strawbridge, John Greig, Sal Algeri and Richard Hughes from personal liability for the credits and refunds.
This is because under insolvency law, it’s the administrators who are personally liable for debts they accumulate while in charge.
It is important to note, however, that all flight credits issued before the airline went into administration on 20 April are valid.
The coronavirus pandemic has decimated the airline’s short and long term business viability leaving it in $5 billion of debt.
The administrators have confirmed that over the coming days they will be working to provide more certainty on customers waiting for refunds and credits.
The aim is to have a solution in place within a week.
On Virgin Australia’s website, they state that the intention of the administrators is to undertake a process to restructure and re-finance the business and bring it out of administration as soon as possible.
“Virgin Australia has been an important part of Australia for 20 years and we’re determined to keep flying into the future,” the carrier said.
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