Dark skies

Are Virgin Australia’s bonds headed for a crash landing?

The government has committed millions to helping save both Qantas and Virgin Australia, although the CEO of the former has publicly stated the later doesn’t deserve it. How much Virgin ends up receiving could have a significant impact on its corporate bond holders.

The COVID-19 pandemic and deteriorating economic outlook have impacted the passenger airline industry in many countries, but this toxic mixture along with a whiff of nationalistic rhetoric has racked up the pressure on Virgin Australia Airlines. So-much-so that the country could see its first institutional bond default for almost 20 years.

¬ Haymarket Media Limited. All rights reserved.

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