The state-owned Queensland Investment Corporation (QIC) is set to make an official bid for a stake in Virgin Australia after the airline went into voluntary administration last month.
Photo: RNZ / Alexander Robertson
Queensland Treasurer Cameron Dick released a statement confirming the move to save the airline and retain its headquarters in Brisbane.
Dick said it could take the form of a direct equity stake, a loan, a guarantee or other financial incentives.
"We have been very clear - two sustainable, national airlines are critical to Australia's economy," Dick said in a statement.
"We have an opportunity to retain not only head office and crew staff in Queensland, but also to grow jobs in the repairs, maintenance and overhaul sector and support both direct and indirect jobs in our tourism sector.
"We saw the punishing increase to the cost of flights after the Ansett collapse, and this government will not stand by and let that happen again."
Prior to going into voluntary administration, the Queensland government had offered $200 million towards a support package that was conditional on Commonwealth government backing.
Virgin called in the administrators in late April after the federal government refused to step in with a $1.4 billion loan, despite repeated pleas from company management.
The move has left at least 15,000 airline workers and connected supply chain workers under a cloud.
QIC chief executive officer Damien Frawley said the restructure of Virgin Airlines represented a significant opportunity for Queensland.
"We are well-equipped to manage the state's interest in Virgin Australia Holdings [VAH] should the consortium be successful," he said.
"QIC's track record as an acquirer, owner and manager of nationally critical infrastructure for both the Queensland government and long-term investors supports our consortium bid.
"Virgin administrator Deloitte has set an ambitious timeframe and we look forward to delivering on this mandate for the Queensland government."
Dick said administrators were looking to conclude the sale process by June 2020.
"This is a competitive space, but Queensland is a serious contender and our discussions with the administrators have been making progress," he said.
"Queensland is Australia's home of aviation and with all our competitive advantages, we fully intend to stay that way."
Last month about 600 New Zealand-based jobs were lost after Virgin Australia shut down its New Zealand operations.
- ABC