Customers may still be able to get a refund from the company despite it entering administration. Photo by Jono Searle/Getty Images
Customers may still be able to get a refund from the company despite it entering administration. Photo by Jono Searle/Getty Images

Morrison on Virgin bail out

Scott Morrison addressed Virgin Australia's decision to go into voluntary administration.

"It is a road out. It is a road out and forward into the future, to ensure that the airline can emerge on the other side and we can have the strong, commercial, viable competition between two carriers in Australia, which the government believes is very important," he said.

"But I believe it will be a challenging road ahead and I think we all understand that, and I wish the administrator all the best. Nicholas Moore will be doing that work on behalf of the government to engage with the administrator.

"I am encouraged by the fact that there are already 10 parties who have expressed interest in working with the administrator regarding Virgin's future, and I think if we had not taken the actions that we have, and not demonstrated the patience that we have had, then what we may have ended up doing is sending $1 billion to foreign shareholders, and that was never part of my plan.

"My plan was always about seeing two viable airlines on the other side, two viable airlines that would be there not just one year from now but five or 10 years from now."

Essentially the same message there as the one we heard from Josh Frydenberg earlier - that Virgin has wealthy foreign shareholders and the government definitely doesn't want to bail them out.