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Perth Airport has resorted to blocking Virgin Australia planes with a bulldozer in an attempt to get the airline to pay its debt

Apr 25, 2020, 05:15 IST
Business Insider
Virgin Australia
  • According to 7news, four Virgin Australia planes are being blocked by heavy machinery and company vehicles at Perth Airport.
  • According to the report, the airline owes the airport $16 million.
  • Due to COVID-19, the airport is expected to lose $100 million in revenue over the next three months.
  • Visit Business Insider's homepage for more stories.
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Virgin Australia planes at Perth Airport in Australia are being blocked by heavy machinery and company vehicles, according to 7news.

The planes are being blocked because the airline racked up $16 million worth of debt due to airfield and terminal use charges.

"Virgin has significant outstanding invoices from Perth Airport for airfield and terminal use charges, money the airline has already collected from its passengers and the FIFO sector," a spokesperson for Perth Airport told The West Australian, according to 7news.

According to 7news, the airport has taken liens on four Virgin aircraft, which an airport representative says is common practice. Due to COVID-19, the airport is expected to lose $100 million in revenue over the next three months. In addition, the airport claims Qantas, another Australian airline, owes them $20 million.

An airport spokesperson told ABC that current flights will not be impacted.

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"The aircraft affected are not being used for current FIFO or interstate operations and have been parked at Perth Airport for some time now," the spokesperson said.

The airline will continue to fly around 180 weekly flights out of the airport.

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