AIRLINE Virgin Australia has gone into voluntary administration a day after its minority shareholder Sir Richard Branson made a fresh plea to the British government to help him save Virgin Atlantic.

About 16,000 jobs are hanging in limbo after Australian PM Scott Morrison denied Virgin Australia’s request for a £710 million bailout to keep it afloat during the coronavirus pandemic.

The company made the announcement of voluntary administration today in a statement to the Australian stock exchange after a board meeting of the firm’s international shareholders, who voted against providing more financial support.

British-born billionaire tax exile Mr Branson owns 10 per cent of the firm, which is owned in part by Etihad Airways and Singapore Airlines.

Australian trade unions are calling on Mr Morrison to buy equity in the company to save jobs. But his government said the bailout should come from the “deep pockets” of majority shareholders.

Mr Branson also owns 51 per cent of Virgin Atlantic, for which he made a second request to the British government on Monday for £500m to save the airline, which he says is on the brink of collapse.

Campaigners have called on the government to buy out the 49 per cent share held by US airline Delta to nationalise the airline.

We Own It’s Cat Hobbs said: “We shouldn’t be paying vast sums to shareholders right now, so Australia got that right. 

“Our government should let Virgin Atlantic go bust, then step in to buy it straight away so workers’ jobs are safe. Once in public ownership, the next task would be transitioning the company to be more sustainable, help tackle the climate crisis and protect jobs.”

Earlier this month, Virgin Atlantic called on the government to offer Britain’s airline industry emergency credit facilities worth up to £7.5bn.

Chancellor Rishi Sunak has said the government is prepared to negotiate with individual firms once they have “exhausted other options” such as raising cash from existing investors.