The Transport Workers Union has written to the Prime Minister expressing concern that Bain Capital is going to walk away from some of its commitments to keep Virgin Australia a strong second airline.
The TWU has also suspended EBA talks with Bain over reports that current Virgin Australia chief Paul Scurrah has been sacked.
TWU national secretary Michael Kane has urged Mr Morrison not to make any further public money available to Virgin Australia until there is clarification about jobs and future direction for the airline.
In Canberra there is also concern that Bain Capital may even scrap the $3.50 billion deal to rescue Virgin Australia which is due to be finalised on October 31.
In the original deal Bain agreed to keep 6000 staff, regional operations, tiered cabin classes, airport lounges and the airline’s international arm.
However, there is growing evidence that many of the promises are being cast aside.
Emails and calls to Bain for clarification on Mr Scurrah’s role and that of the commitment to buy the airline have not resulted in a response.
Today, West Business broke the story of both Mr Scurrah’s departure and the possible appointment of ex Jetstar boss Jayne Hrdlicka as chief executive and the fact that Bain would take the airline down market.
Yesterday Virgin Australia was lashed on social media over the savage in-flight service cutbacks that see business class passengers being served up two-minute noodles.
The TWU has also written to Bain seeking an urgent meeting.
The airline landscape is far tougher than when Bain agreed the rescue in June.
The Victorian second wave fiasco, the emergence of Rex as a domestic jet competitor and new forecasts of lengthy international border closures have soured the business case.