The Australian Federation of Air Pilots (AFAP) is recommending approval of Bain Capital’s deed of company arrangement (DOCA) ahead of Friday’s second Virgin creditors meeting
“Based on our assessment of the second creditors report, the AFAP will be voting in favour of the completion of the Virgin sale to Bain Capital,” said AFAP Executive Director Simon Lutton.
“Even though many of our pilot members have lost their jobs, we need to at least ensure they receive their full entitlements and voting for the Bain DOCA achieves this.”
The administrator Deloitte has made it clear that, even if the DOCA proposal is not approved by creditors at the second meeting, the sale to Bain will be completed under an asset sale agreement.
“This approach carries with it the increased risk of liquidation which would mean millions in lost entitlements for thousands of employees,” said Mr Lutton. “The AFAP cannot take this risk.”
“While it is disappointing that the airline on the other side of administration will be a scaled back operation, the survival of the airline is critical.”
“Following administration, the AFAP will focus on holding Bain and CEO Paul Scurrah to their commitments to grow the airline once the pandemic subsides and reinstating our pilot members who have lost their jobs."