Virgin Australia - The country's second-largest carrier - has confirmed it has entered voluntary administration.
Last month Virgin cancelled all flights last month following wide-spread travel bans while It was already struggling with a long-term A$5bn (£2.55bn; $3.17bn) debt.
Last month Virgin cancelled all flights last month following wide-spread travel bans while It was already struggling with a long-term A$5bn (£2.55bn; $3.17bn) debt.
The airline is now seeking new buyers and investors, after failing to get a loan from Australia's government. In an announcement to the Australian Stock Exchange, Virgin said it planned to keep operating flights despite handing the keys to administrators.
Virgin Australia chief executive Paul Scurrah said: "Our decision today is about securing the future of the Virgin Australia Group and emerging on the other side of the Covid-19 crisis.
"Australia needs a second airline and we are determined to keep flying."
The Australian government had refused a request from the company for a A$1.4bn loan, but in the past month had announced around A$900m in support for all local airlines.
Virgin Australia has turned just two statutory profits in the past decade.
It is part-owned by a number of entities including the UAE government, Singapore Airlines, HNA, and Virgin itself.