Virgin Australia will reportedly collapse into voluntary administration after the embattled airline failed to find a financial backer.
Board members are expected to place the carrier into administration on Monday night after a crisis meeting that afternoon.
As the meeting unfolded, Virgin staff begged state and federal governments to save the airline, which had been grappling with a $5billion debt.
'We can not collapse, we beg you to help Virgin,' said one staff member at a media conference at Melbourne Airport today.
'Virgin is my home away from home,' said another Virgin employee, Tony Smith, as his voice choked up with emotion.
'They are my brother, my sister, my mum and dads, my grandfather.'
The Transport Workers Union released a statement on Monday urging the Federal Government to work with administrators and to save jobs by taking an ownership stake in the business.
'This is a terrifying moment for thousands of Virgin workers,' said TWU National Secretary Michael Kaine.
'There is still time for the Federal Government to work on an investment plan to get through this period of crisis and taxpayers will get a double benefit. The Government will retain a competitive aviation market and they will get a return on their equity stake.'
Virgin Australia employee Tony Smith (centre) speaks to reporters at Melbourne Airport on Monday as the company battles to stay afloat
The union warned the Government would face a potential entitlements and redundancy bill of $800 million if it allowed Virgin to collapse.
With air travel down over 95 per cent because of the coronavirus lockdown the airline has been seeking government assistance to help its financial situation.
Virgin employs about 10,000 people directly and supports another 6000 jobs indirectly.
Voluntary administration does not mean that these jobs are lost as the company may continue to trade in administration, or be sold to a new owner.
Virgin Australia has reportedly been put into administration however the airline would not confirm or deny the report on Monday evening
Virgin had been in bail-out talks with the NSW and Queensland governments and had reportedly asked for a $1.4 billion loan from the Federal Government.
Queensland offered $200 million, which reportedly fell short of the airline's requests.
Virgin Australia was not able to confirm or deny whether a decision had been made when asked by Daily Mail Australia on Monday evening if it would be placed into administration.
'No, we haven't made an announcement on administration,' a spokesperson said.
However it has been widely reported the airline will be placed in the hands of administrators on Monday night, with an announcement expected on Tuesday.
Citing unnamed sources, the Sydney Morning Herald reported the cash-strapped carrier had been unable to weather the coronavirus crisis due to its debt load and administration was 'imminent.'
Voluntary administration does not mean the company ceases trading or that employees immediately lose their jobs.
When an insolvent company goes into voluntary administration, it is placed in the hands of an independent administrator who determines the best path forward for both the business owners and its creditors.
It can be broken up or kept intact and sold.
If it went into administration, the Federal Government could buy an ownership stake for the bailout money, or it could guarantee a buyout by another entity such as a superannuation fund
If the airline were to be liquidated - broken up and the assets sold - it would leave just one airline, Qantas, to dominate Australian skies, which may mean rising fares, reduced competition and diminished services to regional areas.
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The Morrison Government has so far refused to bail out the airline.
Virgin is part owned by Singapore Airlines and Etihad which in turn are owned by the governments of Singapore and Abu Dhabi.
Along with China, the three countries make up the majority owners of Virgin according to the company's most recent annual report.
It is understood the Federal Government's preferred option is for the company to go into administration to clear the way for the company's rescue.
'The first point of call, for the company, must be its existing shareholders,' Federal Treasurer Josh Frydenberg said on Monday.
'They have some very big shareholders with deep pockets'
'Namely China-related companies as well as Etihad and Singapore Airlines.'
Virgin Australia has reportedly been put into voluntary administration. It is believed the most likely administrators are likely to be Deloitte
Singapore Airlines has had to reorganise its own finances to to survive the international air travel crisis, with no help expected to come from Singapore Prime Minister Lee Hsien Loong.
Billionaire founder Richard Branson who retains a 10 percent stake has not offered to bail out the airline.
It is unlikely the Federal Government would allow China to increase its ownership of the airline to a controlling stake.
Private equity firms are said to have been circling, and the government could require an ownership stake in return for bailout money.
If an administrator is appointed this week, it is likely to be Deloitte, ABC News reported.
The company remains in a trading suspension on the Australian Securities Exchange.
Virgin halted 90 per cent of its flights and stood down 80 per cent of its workforce on March 25, maintaining just 17 destinations to transport essential services, critical freight and logistics.
The carrier, co-founded two decades ago by British billionaire Sir Richard Branson, was in danger of having debt levels six times higher than earnings by the end of June.
'We revised the outlook to negative based on our expectation that restrictions on inbound tourism from Chinese nationals will cut Virgin Australia's earnings for fiscal 2020,' Credit ratings agency Standard & Poor said in a briefing note earlier this month.
But a Virgin Australia spokeswoman said just three weeks ago the airline 'strongly rejected' suggestions its future was at risk, citing the listed company's $1billion cash balance and the retention of the B+ S&P credit rating.
'Our S&P ratings remain the same and there is no impact on our borrowing strategy or existing facilities,' she said.
'S&P's updated outlook for the business reflects their view that the industry will continue to experience challenging conditions over the next six months due to the coronavirus.
'Virgin Australia maintains a strong cash position in excess of $1billion and our recent financial results last week showed an increase in revenue and passenger numbers.
'Any speculation about the future of the business is untrue and misleading.'
A Sydney investment banker, who declined to be named, told Daily Mail Australia the unpopularity of Virgin Australia's corporate bonds was a real worry in light of S&P's outlook downgrade - and said there was a 'danger' it would collapse.
'Their bonds are really underperforming and there is a bit of concern that they will not have enough free cash to service their debt payment,' she said.
Since that statement ratings agencies Moody's and Fitch have both downgraded the company's credit rating.
Ratings agency Moody's said on Monday that creditors would be likely to suffer an economic loss relative to the value of the debt obligation, no matter what the outcome of the current situation.
Moodies said Virgin had minimal cash available under its credit facilities.
Fitch downgraded Virgin Australia on Friday saying it was increasingly uncertain that the airline would be able to borrow any more money.
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