Bain Capital takes Control of Virgin Australia

[henrus]

Hopes are rapidly fading that Bain Capital will retain Perth, Western Australia-based Virgin Australia Regional Airlines (VARA) as a fully functioning unit for FIFO (Fly-in/Fly-out) and Revenue Passengers Transport operations.

I wonder what this means for the Christmas/Cocos Island flights. Perhaps they'll use the 737's instead or switch to Alliance but these fully underwritten flights weren't listed on the possible Alliance routes document that went to the ACCC.

 

[Bundy Bear]

I'm surprised that VARA was still being talked about, I always had the impression, 1 aircraft type operating under one group.

My next 6 flights are on VA, might as well burn those points.

 

[HS-TQE]

I'm surprised that VARA was still being talked about, I always had the impression, 1 aircraft type operating under one group.

My next 6 flights are on VA, might as well burn those points.

VARA was operated as a separate subsidiary to VA mainline.

Saying that, GT, who seems to be quoting himself 'as the source' in that article about VARA hasn't always been right at the best of times.

“Bain has to send a very clear signal to the resource industry that it’s in the airline business, not the asset-stripping business,” the analysts said.

The irony of this comment when VA has virtually no unencumbered assets for Bain to 'strip'.

 

[HappyFlyerFamily]

The irony of this comment when VA has virtually no unencumbered assets for Bain to 'strip'.

Is Velocity encumbered?

 

[jakeseven7]

VH-VUF.

IIRC it's been reported that REX are picking up the oldest of the VA leased 738s, most if not all of the 737s heading to REX have the non-BSI interior.

I know there is an unspoken rule not to post ET on this forum, sorry, just this once

Watch out Bain/VA2, Rex is coming for you!

With your planes.... and your hard product....!

Confirmed! Ex-Virgin 737 snapped by Australian Aviation is Rex’s

Rex confirmed on Thursday evening that the ex-Virgin 737 shot by Australian Aviation having its tail branding removed is in its capital city fleet.

australianaviation.com.au

Rex to join Virgin Australia in a race to the middle ground

The new capital city flights of Regional Express will share Virgin's mid-market approach.

www.executivetraveller.com

 

[AustraliaPoochie]

Yep, saw that article too.
Also, with REX having plans for a FF program, and its more Aussie than VA2, who knows, Rex might be the Ansett!
Hope they won't go the way of VA1/the original Ansett.

 

[HS-TQE]

I know there is an unspoken rule not to post ET on this forum, sorry, just this once

Watch out Bain/VA2, Rex is coming for you!

With your planes.... and your hard product....!

The one difference.. assumably... would be replacing the J seat Virgin branded upholstery with new ones (with no Virgin logo).

Stobart Air in Dublin largely kept their ex-VA E190 as is with the only notable exception being replacing the Virgin branded J seat upholstery.

Post automatically merged: Nov 10, 2020

Yep, saw that article too.
Also, with REX having plans for a FF program, and its more Aussie than VA2, who knows, Rex might be the Ansett!
Hope they won't go the way of VA1/the original Ansett.

REX is partially Singaporean owned (different private Singaporean based company not related to the government owned Temasek - owners of SIA).

 

[AustraliaPoochie]

Is Velocity encumbered?

Very hard to say, I thought at one time, I read that it was a separate entity, run on its own, this wasn't for when it was owned by that private equity fund, before VA1 bought it back, even after, before Covid started, and VA1 went into vol admin...
Its fine for them to say that they were separate a while back, then run by VA, and now, who knows...
Can Bain touch VFF though, who knows?
Maybe.
23/11, not that far off now though.
Edit: ta, Hs-tqe, that is where that Asian surnamed REX Ex Chairman comes into it.

 

[jakeseven7]

Can Bain touch VFF though, who knows?
Maybe.

Please, VA1 milked VFF even though it was 'in a trust'.... remember the 'loan' from VFF to VA1? Ahem....

Bain will get whatever they want out of VFF.

 

[dk4]

Yep, saw that article too.
Also, with REX having plans for a FF program, and its more Aussie than VA2, who knows, Rex might be the Ansett!

IIRC, Rex and VARA (ex Skywest - AnsettWA) are what is left flying from the collapse of Ansett.

Interesting that the Ansett bankruptcy saved the regional operations, as the most profitable and salvageable part of their flying business.

 

[HS-TQE]

REX Will need to upgrade their booking systems considerably if the owners are considering an global alliance in the longer term.

 

[HS-TQE]

IIRC, Rex and VARA (ex Skywest - AnsettWA) are what is left flying from the collapse of Ansett.

Interesting that the Ansett bankruptcy saved the regional operations, as the most profitable and salvageable part of their flying business.

And yet DJ/VA couldn't make their regional attempts work, starting all the way back in the Godfrey CEO era with the Embraers.

Sounds like VA mk 1 was pretty much the reverse of AN domestically (AN domestic mainline wasn't profitable/profitable regional ops) whereas with VA it was profitable domestic mainline, loss-making regional ops for almost all of its tenure.

 

[henrus]

With your planes.... and your hard product....!

Rex has said they'll be removing the Virgin logo on the Business class seat, that's a start I guess.

I wonder if the headrests in Economy will change colour and how much else remains, the aircraft still has the wifi antenna and possibly the Lufthansa board connect system both of which will require a license fee though which I can't see Rex paying.

 

[dajop]

IIRC, Rex and VARA (ex Skywest - AnsettWA) are what is left flying from the collapse of Ansett.

Interesting that the Ansett bankruptcy saved the regional operations, as the most profitable and salvageable part of their flying business.

One could also argue that FlyPelican is a (loose) remnant of Ansett too. IIRC, it was formed by some former Aeropelican staff, using former Aeropelican aircraft after Aeropelican was merged with/taken over by Brindabella Airlines, who also went bankrupt. Perhaps it should have been called Fly Phoenix, due to rising twice from the ashes of bankrupt parents.

 

[jakeseven7]

Rex has said they'll be removing the Virgin logo on the Business class seat, that's a start I guess.

I wonder if the headrests in Economy will change colour and how much else remains, the aircraft still has the wifi antenna and possibly the Lufthansa board connect system both of which will require a license fee though which I can't see Rex paying.

I wonder if they will remove the hideous purple plastic (very aged colour now) divider thing and replacing it with something nicer....

 

[oz_mark]

The federal court has granted leave to the administrators to transfer all existing shares in VAH to Bain.

The transfer is expected to occur on 17 Nov.

 

[AIRwin]

The transfer is expected to occur on 17 Nov.

Ironically the day after a big milestone for QF...

 

[henrus]

I wonder if they will remove the hideous purple plastic (very aged colour now) divider thing and replacing it with something nicer....

Honestly, I doubt it. With all respect, the staff at Rex appear to have no idea what they're doing, at least that the public perception they're putting out. I don't see this as a serious threat to VA or QF right now but maybe it's all an act and they've secretly got everything under control.

The day the 737 flew from WTB to SYD the spokesperson said they were surprised it arrived. They also said they're still deciding what to do with the 8 business class seats but then said they will remove the Virgin logo. Initially, it was just SYD-MEL but now SYD-BNE and this all makes me think they're just making it up as they go along.

Something REX should aim for is a shuttle style service (and possibly VA/QF will follow), by this I mean:

- Priority Security/Check-In for these flights
- Short check-in times (30 minutes with bags and 15 minutes without)
- Boarding closing 5 minutes prior to departure.
- Drinks/Snack only onboard
- Wifi (can be paid) but allow for streaming of a news channel
- Easy changes to an earlier/later flight (without crazy fees)
- Ability to hold a ticket in credit without a large fee

All of these are easily achievable and are done in the US by Delta Shuttle and I think it's something that would really switch people from Virgin to Rex on those routes. At the same time, Virgin should be fighting back by allowing the fly ahead (for Gold/Plat) to be done in-app, easily achieved by Air New Zealand.

 

[Bagpuss]

The federal court has granted leave to the administrators to transfer all existing shares in VAH to Bain.

The transfer is expected to occur on 17 Nov.

Still needs to clear US Chapter 15 which will be held on 12 November 2020 at 3:00pm New York time in the United States Bankruptcy Court, Southern District of New York.
That‘s the final hurdle.

Virgin Australia s444GA Share Transfer Recognition Hearing | Deloitte Australia | Restructuring, Insolvency & Financial Advisory

On 29 April 2020 (AEST), Virgin Australia Holdings Limited (Administrators Appointed) and certain of its affiliates (Virgin Australia) filed petitions pursuant to chapter 15 of the Bankruptcy Code (Chapter 15 Cases)

www2.deloitte.com

 

[RAM]

I'd say they need to send some clear signals to their frequent flyers soon as well.

Have to wait under after the final Court approval & then the lapsing of the appeal by date a few days later - AKA next week!