City gives troubled Virgin an office-rent holiday

Virgin Australia has received support from the City of Karratha, which will waive the struggling airline’s office rent at Karratha Airport for up to six months.

The council resolved at its ordinary May meeting to waive $8469.35 in rent for a 34.4sqm terminal office space, despite Virgin owing the City for landing fees, passenger service charges and security charges — a total amount of $648,940.40,

The City said other airports across Australia had also supported Virgin with lease-fee waivers in a bid to ensure the domestic aviation industry had competition and choice, with documents noting Australia would benefit from two strong airlines continuing their service to maintain affordable fares.

The request was made by Virgin Australia administrators Deloitte.