The airline went into voluntary administration on Tuesday and the hunt is now on for new investors to keep it going.

"There is an extraordinary number of parties keen to be involved," administrator Vaughan Strawbridge, from Deloitte, told reporters on Tuesday.

"This is a matter of months, not longer than that."

Staff who still have jobs will continue to receive their wages, and eligible staff will get the government's JobKeeper payments during the administration period.

Virgin Australia CEO Paul Scurrah said the airline had tried but failed to secure the liquidity it needed from shareholders, governments and others.

He said seeking new investment streams was the best way to ensure the airline's future.

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

"It is our absolute intention to emerge stronger. Australia needs a second airline and we are determined to make sure we are that airline."

He said the coronavirus pandemic had severed the airline's oxygen supply, but new investors would hopefully ensure Australia has a second carrier when things return to normal.

Australian Associated Press