Treasurer Josh Frydenberg is instead putting pressure on the company’s shareholders.

“They’ve got deep pockets,” he told ABC radio on Thursday.

Mr Frydenberg said the government was continuing to talk to the company as well as Qantas, having already provided more than $1 billion in relief for the aviation industry.

“We want to see Virgin continue, we want to see two airlines in the domestic market, but we’re not in the business of owning an airline,” he said.

“Where our focus has been is on providing industry-wide support.”

In an interview with The Courier-Mail this week, Virgin Australia chief executive officer Paul Scurrah warned of “catastrophic” outcomes if the airline collapsed.

Virgin Australia, which is in a trading halt, contributes more than $1.2 billion to the state’s tourism industry each year and spends about $1 billion in the industry supply chain.

“Some of those suppliers won’t survive this crisis if we don’t,” Scurrah said.

Virgin’s 5000 staff make it one of Queensland’s largest employers, with its international hub based in Brisbane and almost half of all flights flying to or from the state.

“The impact not being here would be catastrophic for the Queensland economy,” Scurrah said.

“This is where the real heart of our company is.”