The main point that I took away from the article is that if Virgin Australia does go under then some have suggested, that it wouldn't be a simple matter of someone purchasing the owned aircraft and the AOC and resuming operations (if government restrictions are lifted by then). I have read it elsewhere that by buying the AOC you are also buying all the "baggage" aka the debt so it may be that buying the AOC isn't a viable option because you are buying crippling debt and all the financial liabilities.
If it isn't, then that means applying for a new AOC, which means an approval process that can take around 12 months along with all the other hurdles of obtaining finance and putting a new corporate structure together, with some people with statutory responsibilities (i.e. a chief pilot etc etc), access to airports etc and the obvious hurdle that it would be likely that VA would fall into administration while there are still travel restrictions that prevent any airline from operating domestic flights at a profit, so you would be buying an AOC or applying for a new one in the environment of government restrictions that prevent you from operating an airline. Hardly a conducive environment of starting up or relaunching an airline....
I think its more likely that the Federal Government is going to somehow finance/re-arrange finances or bail out all airlines in Australia unless domestic flights can resume by June, and that would include Qantas, Virgin, Jetstar, Alliance, Rex, Cobham, Sharp and Air North among others, the only question is what form and what formula will be used to refinance or cash-flow all these airlines. You wouldn't expect the Feds to want to "pick winners" among them, but simply offer a mechanism that gives them a good chance of surviving.
You'll note in all the appeals for government help, that Paul Scurragh has made,, he has consistently indicated that whatever help is forthcoming, should be available to all airlines including Qantas.
www.theaustralian.com.au
abr.business.gov.au
web.archive.org
