Virgin Australia finds new owner in US private equity firm Bain Capital

Administrators for the carrier announced Friday that it had selected Bain Capital, the US private equity firm, to take over the company, two months after its collapse. Terms of the deal were not disclosed.

Bain won out over Cyrus Capital Partners, a New York-based investment firm, which had also submitted a binding offer.

"Several proposals from other interested parties" were also submitted this week, including a proposal by some of the airline's bondholders, according to the administrators.

The deal comes as the coronavirus pandemic continues to hurt global demand for travel. The International Air Transport Authority has estimated that it could take more than three years for international travel to return to pre-crisis levels.

Virgin Australia, Australia's second biggest airline, filed for voluntary administration in April after failing to receive the government support it had asked for. Earlier that week, billionaire founder Richard Branson had appealed to the national government for assistance, and even said he would offer his Necker Island estate in the Caribbean as collateral.

Virgin Australia's main local competitor, Qantas, is also fighting to stay afloat. Qantas, which is Australia's flagship carrier, announced Thursday that it would slash 6,000 jobs and raise up to 1.9 billion Australian dollars ($1.3 billion) as it took on "the biggest crisis our industry has ever faced."

While federal authorities in Australia have declined to provide a direct bailout for Virgin Australia, they have stressed the importance of the carrier's survival.

"We want a competitive aviation market here in Australia. We want to see these two airlines [Virgin Australia and flag carrier Qantas] flying and competing," Prime Minister Scott Morrison told reporters last month.

Virgin Australia's administrators said Friday that the deal would likely face "minimal" regulatory scrutiny.

Bain has already received preliminary regulatory approval from Australia's treasurer, and is now proceeding with the airline for its restructuring and eventual sale, administrators said.

— Angus Watson contributed to this report.