Keep Virgin Australia in the Skies

[hydrabyss]

I’m pretty sure if Virgin can’t pay it’s known payments over a timeframe which I think is a month you are trading insolvent and that’s a big no-no.

Did the Government not change that for the next 6 months or was it for only some companies.

 

[serfty]

VA's 10,000+ employees on Jobkeeper for 6 months is ~$195,000,000

QF's 30,000+ employees on Jobkeeper for 6 months is ~$585,000,000

 

[lacuska1]

sure qantas need competition to keep those airfares right-but in this dire situation the government has much urgent priorities than saving an airline which was already struggling financially before all the s**t hit the fan!

 

[Must...Fly!]

sure qantas need competition to keep those airfares right-but in this dire situation the government has much urgent priorities than saving an airline which was already struggling financially before all the s**t hit the fan!

It's more difficult than that though, I would suggest because of Virgin's pretty strong plans and new management. Things were definitely looking up and the widebody fleet issues were certainly on the way to getting sorted as well.

 

[PineappleSkip]

I won't be signing, and here is why, there are multiple Australian small business operators out there that due to what they do, while affected by COVID-19 restrictions, they fall through the cracks.

Greetings from between the cracks! I’m one of those sole trader businesses whose income has virtually ceased, and gets, um, a deferral of my April PAYG instalment and I can ring up for other tax deferrals (extension to pay, not waivers) if I get desperate. Whoopsy-doozle.

I did sign because my biggest cost by far is airfares, so I would like to see that cost as low as possible, thanks. DXB on the QF-EK club costs a fortune out of Australia, and the only value options are indirect. Thank goodness for some competition. QF now has a monopoly on the BNE-SYD market too, and they have already posted the monopoly writing on their wall.

All next week, $199 for a red e-deal and severely restricted supply, meaning these ‘bargains’ are now sold out till friday. What would there be to stop charging sky-high fares and running fewer flights to keep the load factors up?


cheers skip

 

[dajop]

sure qantas need competition to keep those airfares right-but in this dire situation the government has much urgent priorities than saving an airline which was already struggling financially before all the s**t hit the fan!

Governments have many priorities, all the time. It's not just "saving the airline" that comes into play, its the jobs directly (employed by VA) and indirectly (employed by companies contracting to VA) as well broader implications for businesses indirectly impacted (eg tourism etc). Probably worthwhile allowing them to hang on for a few months to get a better picture of what the scenario is most likely to be in the following 1-2 years. If it is truly grim, then it may not make sense to let two airlines continue, and instead pursue a strategy which involves divestment of JQ by QF or tighter control on their domestic monopoly. If it is looking more rosy, then it might be worthwhile for VA to continue to be supported until over the hump and then let them live or die on their own.

 

[jakeseven7]

Governments have many priorities, all the time. It's not just "saving the airline" that comes into play, its the jobs directly (employed by VA) and indirectly (employed by companies contracting to VA) as well broader implications for businesses indirectly impacted (eg tourism etc). Probably worthwhile allowing them to hang on for a few months to get a better picture of what the scenario is most likely to be in the following 1-2 years. If it is truly grim, then it may not make sense to let two airlines continue, and instead pursue a strategy which involves divestment of JQ by QF or tighter control on their domestic monopoly. If it is looking more rosy, then it might be worthwhile for VA to continue to be supported until over the hump and then let them live or die on their own.

I agree, there are too many unknowns and there really might be a scenario where allowing VA to fail is the right thing to do unfortunately.

I think we should be prepared for that, as sad as it would be.

 

[Jamesaurus]

I don't feel comfortable with my taxes going to a poorly run business that will likely continue to lose money.

The benefit of having more competition is outweighed by a waste of my taxes.

I think the foreign equity holders can prop up their own poor investment.

Although only a minority stake, If you read 'Branson' by Tom Bower you will understand that he has a history of exploiting the public, staff (I do feel very sorry for the staff in Australia in this instance) and manipulating governments for his own commercial gain.

 

[Must...Fly!]

I don't feel comfortable with my taxes going to a poorly run business that will likely continue to lose money.

The benefit of having more competition is outweighed by a waste of my taxes.

I think the foreign equity holders can prop up their own poor investment.

Governments are inherently inefficient at almost everything they do. They'll find a way to waste your money on something else - at least supporting VA through this would trigger a much broader economic benefit.

 

[Jamesaurus]

Governments are inherently inefficient at almost everything they do. They'll find a way to waste your money on something else - at least supporting VA through this would trigger a much broader economic benefit.

Agreed re: government inefficiency!

The responsibility surely has to go to the equity holders thought.. if they are going to benefit from the upside when/if Virgin goes well, they have to accept the downside and put up more of their own cash..

 

[dajop]

The responsibility surely has to go to the equity holders thought.. if they are going to benefit from the upside when/if Virgin goes well, they have to accept the downside and put up more of their own cash..

Though, the equity holders probably now didn't give a proverbial about VA succeeding or failing. They need to fight the bushfires heading towards their own back fences, whilst no doubt hoping and praying for a wind change. So they've probably given PS a one fingered salute. Any other financing will probably dilute their equity, so their benefit for any upside is going to be much diminished anyway.

 

[Must...Fly!]

Agreed re: government inefficiency!

The responsibility surely has to go to the equity holders thought.. if they are going to benefit from the upside when/if Virgin goes well, they have to accept the downside and put up more of their own cash..

Well I think that's the point of what VA are up to. Equity holders to be diluted as they aren't stumping up.

 

[jakeseven7]

Though, the equity holders probably now didn't give a proverbial about VA succeeding or failing. They need to fight the bushfires heading towards their own back fences, whilst no doubt hoping and praying for a wind change. So they've probably given PS a one fingered salute. Any other financing will probably dilute their equity, so their benefit for any upside is going to be much diminished anyway.

One of VA's owners is literally being bankrupted and nationalized as we speak!

 

[Bagpuss]

How about showing financial support In your own way ?
Contact Virgin Australia and say keep my Travel Bank.
Book a bookabke flight and not take it.
Book a hotel room and don’t stay to support local operators.
#bookitdontuseit

 

[jakeseven7]

How about showing financial support In your own way ?
Contact Virgin Australia and say keep my Travel Bank.
Book a bookabke flight and not take it.
Book a hotel room and don’t stay to support local operators.
#bookitdontuseit

Sure, can I borrow your credit card

 

[oz_mark]

How about showing financial support In your own way ?
Contact Virgin Australia and say keep my Travel Bank.
Book a bookabke flight and not take it.
Book a hotel room and don’t stay to support local operators.
#bookitdontuseit

My travelbank would buy them a few minutes

 

[jase05]

How about showing financial support In your own way ?
Contact Virgin Australia and say keep my Travel Bank.
Book a bookabke flight and not take it.
Book a hotel room and don’t stay to support local operators.
#bookitdontuseit

Well I do have dozens of flights still booked with them so they are getting a donation

 

[Bagpuss]

Sure, can I borrow your credit card

How quickly attitudes change

 

[Must...Fly!]

How about showing financial support In your own way ?
Contact Virgin Australia and say keep my Travel Bank.
Book a bookabke flight and not take it.
Book a hotel room and don’t stay to support local operators.
#bookitdontuseit

Why bother having a government at all, clearly you're no fan of any benefits derived from the policies of them such as Medicare, public transport, etc.

 

[33kft]

Why bother having a government at all

To bail out private businesses? Then you have those who rarely utilise a service effectively subsidising it for others who use it regularly. I'm not sure asking users to pay is an unreasonable ask at all - perhaps we'll see a ticket levy which does just that, putting the majority of the burden on those who benefit most from competitive ticket prices.