Breaking News: Virgin Australia could be about to go the way of Ansett Australia in 2001 and disappear overnight.

The company is set to go into voluntary administration, as mounting debts and no end in sight to the Covid lockdown mean the airline bleeds millions daily.

There are about 10,000 Virgin Australia employees, most are currently stood down awaiting the fate of the airline..

Virgin Australia also has a fleet of 130 planes, many of which are heavily mortgaged.

The company has been crushed by a $4.8bn mountain of debt and has been burning cash while the fleet is grounded, the Guardian reported.

Earlier the NSW government offered to potentially bail out the airline, if it moved to the new airport at Western Sydney. However, Queensland is not happy and want the airline to stay in Brisbane.

However, Virgin going into administration complicated matters.

Virgin’s board of directors were meeting on Monday, SMH reported.

One well-placed source said the announcement of it going into administration was “imminent”.

Moving the airline into administration is risky, however it could also help the airline find a new owner or do a deal with a government or private equity to save it.

More to come.