It came after a board meeting of its international shareholders voted against providing more financial support, and Virgin went into a trading halt on the stock exchange last week.
“Virgin Australia has entered voluntary administration to recapitalise the business and help ensure it emerges in a stronger financial position on the other side of the COVID-19 crisis,” the budget airline said in a statement to the ASX.
The airline had earlier asked for $1.4 billion financial lifeline, which was rejected, after the spread of the coronavirus hit its domestic and international flights business.
The Morrison government has resisted pressure to save the airline and Finance Minister Mathias Cormann has rejected calls for the federal government to buy a stake in Virgin Australia.
Virgin Australia has appointed Vaughan Strawbridge, John Greig, Sal Algeri and Richard Hughes of Deloitte as voluntary administrators.
“The decision comes as the group has continued to seek financial assistance from a number of parties, including State and Federal Governments, to help it through the unprecedented crisis, however is yet to secure the required support,” the company told the ASX.
“Virgin Australia will continue to operate its scheduled international and domestic flights which are helping to transport essential workers, maintain important freight corridors, and return Australians home.
“The administrators will be supported by the group’s current management team, led by Chief Executive Officer Paul Scurrah, and will work closely with team members, suppliers, and partners throughout the process.”
Virgin Australia said that frequent flyer program Velocity “while owned by the Group, is a separate company and is not in administration”.
