Virgin Australia in talks with government about support for airline industry

[SYDNEY] Virgin Australia Holdings said on Tuesday it was in talks with the government about support needed for the airline industry if the coronavirus crisis is prolonged.

The Australian newspaper reported the country's second-largest airline had sought an A$1.4 billion ($863.10 million) loan rescue package that would see the government take an ownership stake if it was unable to repay the loan in two to three years.

It was part of a broader proposal for A$5 billion of support to the local aviation industry, the newspaper said without saying where it got the information.

"We have been in ongoing discussions with government about the support the whole industry will need if this crisis is prolonged," a Virgin Australia spokesman said, without providing further details of its request.

REUTERS