The Queensland government has vowed to fight for the jobs of thousands of Virgin Australia workers and is demanding the federal government do the same.
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The debt-laden airline went into voluntary administration on Tuesday, after the coronavirus pandemic forced it to ground its domestic fleet.
Queensland's State Development Minister Cameron Dick has accused the federal government of sitting idly by and watching the airline slide deeper into peril.
He said Canberra had done nothing to safeguard the jobs of thousands upon thousands of workers, but he told them they were not alone.
"To those workers today I say, 'we stand by you. We're going to help you'," Mr Dick told reporters.
"While this is a sad and disappointing day, we haven't yet reached the end of the runway."
He said the federal government must step up and start working with the airline's administrators to ensure the airline isn't carved up, and continues as a going concern.
"The Morrison government - who has done nothing and let this company go into administration - we do need them to come forward now ... We need two airlines.
"Anyone who remembers what happened when Ansett disappeared knows how catastrophic it was, particularly for regional communities in our country.
He said talks about salvaging Virgin must focus on salvaging regional services, not just "Sydney-Melbourne, Sydney-Canberra, Melbourne -Canberra".
"Anyone can run an airline like that. We need an airline that runs to Gladstone, Rockhampton, Mackay, Townsville and Cairns.
"Those communities deserve two airlines, they deserve low airfares, they deserve the air to be fair."
Up to 15,000 jobs are on the line after Virgin's international shareholders voted against providing more financial support and the federal government denied requests for a $1.4 billion injection of taxpayer funds.
Australian Associated Press