Virgin set to stay at home in Brisbane

A REVAMPED Virgin Australia and hundreds of jobs are set to remain in Brisbane after the state’s investment powerhouse struck a deal with the final bidders battling for ownership of the airline.

Cyrus Capital and Bain Capital yesterday lodged their final bids for the troubled Queensland carrier, which collapsed into voluntary administration in April owing $7 billion to 12,000 creditors.

The new owner will be known within days, with Deloitte Administrator Vaughan Strawbridge expected to announce the victor by June 30.

Brisbane is understood to be both bidders’ chosen location to base the airline, with Queensland Investment Corporation, doing its bidding on behalf of the State Government, striking an agreement with Cyrus and Bain.

The agreement comes despite stiff competition from governments in Victoria and New South Wales – which is still attempting to lure Virgin to its Western Sydney Airport.

Queensland Treasurer Cameron Dick announced earlier this year the state would put up $200 million to the bidder who was prepared to retain the headquarters in the Sunshine State.

A spokesman for QIC confirmed it was engaged in “fruitful discussions” with Cyrus and Bain.

“We’ve been talking with all bidders and we’ve been very actively pursuing the interest of the state,” he said.

Earlier this month, Bain Capital revealed to The Courier-Mail it would take a significant offer from NSW or Victoria to lure Virgin away from Queensland.

About 1300 of the carrier’s corporate and highly-skilled staff are based in Brisbane.

The airline is likely to retain the Virgin brand and be reborn as a smaller domestic and short-haul international carrier. Mr Strawbridge will spend the next week assessing the bids.