Virgin Australia has secured recognition from the US Bankruptcy Court for its voluntary administration process, under Chapter 15 of the US bankruptcy code. This protects the carrier's US assets from creditors and allows Australia's courts to preside over all claims. The petition was filed in New York on 29 April, the carrier said today in a disclosure to the Australian Securities Exchange. "Formal recognition of the Virgin Australia Holdings Ltd voluntary administration process in Australia has now been granted, recognising the administration proceeding under Australia's Corporations Act as a foreign main proceeding as defined in Chapter 15 of the US Bankruptcy Code." The filing of the petition triggered the application of an automatic stay on creditor action against any assets Virgin Australia entities in administration have or may have in the USA, administrator Deloitte says on its website. It adds: "The automatic stay also prohibits any attempts to collect on claims and prohibits the commencement of any proceedings against Virgin Australia in the US. All claims will be addressed in the main Australia proceeding." "Generally, a chapter 15 case is ancillary to a primary proceeding brought in another country, typically the debtor's home country," according to an article by the US Courts posted on its website. "As an alternative, the debtor or a creditor may commence a full chapter 7 or chapter 11 case in the United States if the assets in the United States are sufficiently complex to merit a full-blown domestic bankruptcy case." Under the US Bankruptcy Code, Chapter 7 relates to liquidation and Chapter 11, rehabilitation or reorganisation.

Source: Cirium

Pakistan’s prime minister, Imran Khan, has expressed shock after an aircraft operated by flag carrier Pakistan International Airlines crashed in a built-up area of Karachi. Khan says that PIA chief Arshad Malik is heading for the city following the accident involving an Airbus A320 arriving from Lahore. “An immediate inquiry will be instituted,” says Khan. Television station Geo News reports that the flight involved is PK8303 and that the aircraft came down in a populated area. It adds that 98 occupants were on board, comprising 91 passengers and seven crew members. Social media images show a chaotic scene with extensive damage to several buildings, black smoke, and rescue vehicles working their way through crowds on the streets. Pakistan Army Aviation Corps helicopters have been dispatched for “damage assessment and rescue efforts”, according to the Pakistan armed forces spokesman, along with urban search teams. The spokesman says troops and civil administration personnel have reached the area for relief work. Circumstances of the accident are unclear. Meteorological data from Karachi airport indicate good visibility and no adverse weather conditions.

Source: Cirium

Air France has decided to not return its Airbus A380s to service, accelerating a previous retirement plan for the type because of the coronavirus crisis. The move disclosed today represents a "definitive end" of Air France's A380 operations, the airline says that it took the decision based on "anticipated activity levels" in the wake of the pandemic. Air France has nine remaining A380s – all are currently parked – having earlier this year retired one jet of the type. Under a previous timetable disclosed last year, the airline was set to phase out the A380 by the end of 2022. The retirement of the A380 fleet is part of a plan to operate "more modern, high-performance aircraft" which will make Air France's fleet "more competitive", it says. Air France has introduced A350's and Boeing 787's to its fleet, and has further aircraft of these types on order. The carrier's long-haul operation additionally includes 777's, A330 and A340's, though the A340's are likewise set to be phased out. The airline estimates it will incur €500 million ($540 million) in write-down costs because of the accelerated A380 retirement, and says it will book the loss during the second quarter as non-current expenses. Air France says it owns five of its A380's while the remaining four are leased. Cirium fleets data lists DS Aviation and ALM among the managers of Air France A380's.

Source: Cirium