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Virgin collapse hints at further turmoil facing Asian airlines

Government support critical to industry's overall survival

TOKYO -- The collapse of domestic and international carrier Virgin Australia could be just the start of a radical reorganization facing Asia's aviation sector in the wake of the devastating coronavirus crisis.

Virgin Australia entered the market in 2000, targeting cost-sensitive passengers, but it suffered from fierce competition with budget carriers. Without lucrative business-use customers to fill the void, the carrier recorded a seven-year consecutive net loss.

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