Consumer New Zealand is warning against booking with Virgin Australia.

Deals are currently being offered by the airline for flights to Australia.

The airline is selling flights to Auckland, Wellington, Christchurch and Queenstown from the 10th of August.

That's despite going into administration, owing $7 billion dollars to its creditors.

Aviation commentator Irene King told Andrew Dickens that the airline is in an administration arrangement, which will likely restructure their debt.

They can fly in liquidation, but they are currently flying only on in a limited basis. 

King says they are allowed to legitimately trade. 

"There's nothing that prevents them from selling tickets. The point is that while they may be broke, they are not insolvent."

However, she says that she would not buy a ticket with them at the moment. 

"Just the sheer lack of certainty about what will be happening at the borders, will they be open; there is nothing ti suggest at the moment that anything will change at the border."