Virgin Australia creditors have voted in favour of the takeover by Bain Capital.
The deal was recommended by the airline’s administrator Deloitte last month and creditors will get just 9 or 13 cents in the dollar back on their unsecured claims.
The agreement secures travel credits for all impacted customers as well as guaranteeing employment entitlements.
"While the outcome of the meeting today is a significant milestone for both the future of Virgin Australia and Australia’s aviation industry more broadly, we also acknowledge those loyal Virgin Australia Group employees who will lose their jobs and the difficulties that this will cause them and their families," a Virgin statement said.
The airline had already announced about one-third of the 9,000 workforce will lose their jobs.
CEO Paul Scurrah said further job cuts may be necessary.
"If the market is much slower coming back or if there’s changes to JobKeeper clearly our position on that will have to be reviewed. We cannot give any guarantees at this point in time," he said.
The sale process is expected to be completed by October, Virgin administrator Vaughan Strawbridge said.
"This outcome provides certainty for employees and customers, a return to creditors, and opportunities for suppliers and financiers to continue to trade," Strawbridge said.
It also secures Velocity frequent flyer members’ benefits.
Written by Ray Montgomery, Asia Pacific editor
