Virgin will continue to operate while in voluntary administration, and is not collapsing, the airline's boss says.

CEO Paul Scurrah says today's announcement that the carrier was in administration was tough, but the plan was for the group to survive the economic impact of the coronavirus pandemic.

At least 10 potential investors, some international, are understood to be circling the failed airline.

Virgin may yet be sold to a buyer. (AAP)

"This is a tough day for our airline ... (but) we're certainly not collapsing," he told reporters.

The coronavirus pandemic was responsible for the worst aviation crisis imaginable but Virgin would be back, Mr Scurrah said.

"We take comfort from the comments from the government that this country needs a robust and healthy two-airline market," Mr Scurrah said.

"And because of this process we're going through, because of the early decision of our board, that airline will be Virgin Australia.

"We'll come back leaner, stronger and fitter."

Over the past decade the shareholders of Virgin Australia have invested more than $6 billion into the airline.

Mr Scurrah described the decision to go into administration as "very courageous".

A passenger is seen at the Virgin Australia terminal at the Brisbane Domestic Airport in Brisbane, in March. (AAP)

He said the voluntary administration would immediately freeze financial pressures on the group, allowing it to refinance and restructure.

Deloitte administrator Vaughan Strawbridge said wages will continue to be paid to the thousands of Virgin staff who had been stood down and are accessing JobKeeper payments.

About 10 potential new investors, some international, are circling a possible restructuring of Virgin, Mr Strawbridge said.

"There has been an extraordinary amount of interest in the business and in the restructuring of Virgin Australia," he said.

"Our intent is to ... preserve as many of those jobs as possible. As we go through the expressions of interest as they in, we'll be mindful of the impact on those going forward."

Today's announcement 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 airline said in a statement to the ASX.

The board has appointed Deloitte has voluntary administrators.

It also confirmed the airline's frequent flyer program, Velocity, is a separate company and is not in administration.

"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 it is yet to secure the required support," the ASX statement said.

Virgin Australia employee Tony Smith speaks to the media during a press conference at Melbourne Airport. (AAP)

Grounded Virgin Australia planes are seen at Tullamarine Airport in Melbourne (AAP)

'This is not Ansett': Treasurer says Virgin will continue

Treasurer Josh Frydenberg has declared Virgin going into voluntary administration does not spell the end of the airline.

"This is not liquidation," Mr Frydenberg said.

"This is not Ansett. This is not the end of the airline.

"Rather, as the company itself has said in its statement, this is an opportunity for the company to recapitalise and come out stronger on the other side of the coronavirus crisis."

Mr Frydenberg said the Federal Government would not bailout the five large foreign stakeholders who own 90 per cent of the airline.

He added that the JobKeeper payment would continue to be available for Virgin Australia employees.

"The government's objective is to see two commercially viable airlines operating domestically in Australia," he said.

The carrier asked for $1.4 billion financial lifeline but that has been rejected by the government.

Founder Sir Richard Branson took to Twitter to say "this is not the end of Virgin Australia".

Mr Scurrah said billionaire founder Richard Branson "cares deeply" about Virgin Australia and is "hurting" over the airline's slide into administration.

"I talk to Richard on a regular basis. It must be remembered that Richard takes a lot of pride in this company and it's one of the airlines he pays a lot of attention to," Mr Scurrah said.

"Richard is hurting. But he's doing everything he possibly can to help us get through this and maintains a strong interest in participating going forward."

Finance Minister Mathias Cormann rejected calls for the Federal Government to buy a stake the airline, but said he wants to see two airlines remain in Australia.

He said he believes administration can find a sustainable private-sector solution to the company's future.

"The government is not in the business of owning an airline," the finance minister told ABC.

"But we do want to see two airlines continue and we believe that the opportunities (are) there out of the administration process for that to happen."

Virgin is 90 per cent foreign-owned, with Singapore Airlines, Etihad Airways and Chinese conglomerates HNA Group and Hanshan owning 80 per cent between them, and Richard Branson's Virgin Group holding 10 per cent.

Virgin began in Australia in 2000 as Virgin Blue and became a major player in the domestic market after the collapse of Ansett Australia the following year.

Virgin offered a range of flight classes, including business. (Virgin Atlantic)

WHAT IS VOLUNTARY ADMINISTRATION?

Just because Virgin Australia has gone into voluntary administration, does not automatically mean it has disappeared forever.

When a company is facing grave financial difficulties (such as running expenses vastly out-stretching income coming in), it becomes insolvent.

To fix this, a business appoints an independent administrator who effectively runs a detailed accountancy check of the business to slash unnecessary costs.

Voluntary administrators may make several recommendations to help save a company, which include: finding a buyer to purchase the business as a complete package, or restructuring to cut down on overhead costs.

Most large-scale businesses such as Virgin Australia have already investigated extensive restructuring methods, so it largely comes down to whether the airline presents an attractive opportunity for a multinational with deep pockets.

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