Rex Administration - implications for Virgin Australia

[rojo the red]

Qantas are offering to reacommodate too; https://www.qantasnewsroom.com.au/featured/qantas-group-statement-on-rex/

 

[AIRwin]

On the Virgin invoice it shows $1500 for our 2 return tickets.

Any points and status credits?

 

[Cardinal]

Qantas are offering to reacommodate too; https://www.qantasnewsroom.com.au/featured/qantas-group-statement-on-rex/

The announcement was just a little too late for me. Anyway, I have my new flights 48 hours after sending me Rex booking details to Virgin.

 

[jakeseven7]

We discovered that about 10 of our team has REX jet flights booked in the future. All easily rebooked onto Qantas so actually everyone happy and has become a bit of a non-event for them.

 

[trisreed]

It's entirely possible it could be some the ex-VA aircraft, specifically PAG/REX/RQP which are relatively young compared to the other ex-VA aircraft (2010 builds). These three would also come from the same leasing company which actually has a pre-existing relationship with Virgin.

The Oz seems to somewhat agree: https://www.theaustralian.com.au/bu...ws-story/74e54c65be336ea385ebc397d6a8bd6a?amp

In an ironic twist, Virgin is buying three Boeing 737s from the Rex administrator, two of which are the exact same aircraft Rex purchased from the Virgin administrator back in 2020.

 

[HS-TQE]

Except that Virgin are not "buying" the Boeing 737s from the Rex administrator.
Considerable difference between 'buying' and 'leasing'.

If the reports on multiple other aviation of forums of VH-PAG getting repo'd are correct, that only leaves REX/RQP as the 2 ex-VA1.0 units (they are 14.4 and 14 years old respectively) available for VA2.0 to pick up the leases.

 

[kyle]

Out of interest, what do VA gain for letting Rexy pax rebook for free on VA flights?

The cynic in me thinks it can be used as brownie points for future negotiations with the government on aviation issues

 

[trisreed]

Except that Virgin are not "buying" the Boeing 737s from the Rex administrator.
Considerable difference between 'buying' and 'leasing'.

If the reports on multiple other aviation of forums of VH-PAG getting repo'd are correct, that only leaves REX/RQP as the 2 ex-VA1.0 units (they are 14.4 and 14 years old respectively) available for VA2.0 to pick up the leases.

It seems that detail is lost on most journos these days - considering that slip up, I don't know how much belief to put into the statement as a whole. But perhaps it is just the 'uneducated' meaning leased.

 

[philelltt]

Out of interest, what do VA gain for letting Rexy pax rebook for free on VA flights?

Do I understand it correctly nothing in terms of cash?

Goodwill / hopeful future returning flyers?

VA Shirley don't want to manage the 900year old Saab's?
They were always strong preference for 1 type of aircraft.

Virgin took over my Rex bookings and gave me flights. In doing that, I'm no longer a creditor to Rex airlines in the case of insolvency. Virgin have taken over my rights to be a creditor to that airline. That could be used by them in future to take over Rex....

 

[MarkD]

Virgin took over my Rex bookings and gave me flights. In doing that, I'm no longer a creditor to Rex airlines in the case of insolvency. Virgin have taken over my rights to be a creditor to that airline. That could be used by them in future to take over Rex....

Maybe. But i think the goodwill generated by looking after passengers, who otherwise have purchased tickets with their competitor is their reason. Id be surprised if they are doing it for any reason other than positive publicity. Remembering there is a defined cutoff date of 14/8 to change.

What surprises me is the amount of whinging ive seen online from some sites about people not getting the exact flights they wanted when virgin have given them the opportunity to travel, rather than do their cough on a fare that cannot be used. Guess im just old fashioned and grateful when someone does me a solid.

 

[henrus]

Virgin took over my Rex bookings and gave me flights. In doing that, I'm no longer a creditor to Rex airlines in the case of insolvency.

Is that true? I was under the impression VAs bookings were a goodwill offer from them?

 

[AIRwin]

Virgin took over my Rex bookings and gave me flights.

Are you rebooked in a fare class which earns Velocity points and status credits?

 

[ben95]

Virgin have taken over my rights to be a creditor to that airline. That could be used by them in future to take over Rex....

Certainly not. You are an unsecured creditor and last on the list to get anything if Rex is liquidated. If VA is interested in anything in Rex it would just submit a proposal and negotiate asset purchase with the administrator. It doesn’t need to crowd source via Rex ticket holder.

 

[AustraliaPoochie]

JH according to a newsbit says she is not intereted in taking over ZL ops.
Only wants to run one type of aircraft lingo.
Tho, if ZL does goes to a sale, who knows, one of the UAE airlines might swallow it up, or 49% anyway.
===
Or, who knows tho, while VA might now directly take over ZL, Bain might do another winkie, ie, they buy out ZL and then onsell later on.

 

[Digicola]

Or, who knows tho, while VA might now directly take over ZL, Bain might do another winkie, ie, they buy out ZL and then onsell later on.

Maybe they could take ZL over, turn them into a middle of the market airline with lounges and a frequent flyer program but an unbundled offering at the back whilst rationalising the fleet around a unique type like the 737 and prop them up for a potential IPO.

That would be a novel idea!

 

[drron]

JH according to a newsbit says she is not intereted in taking over ZL ops.
Only wants to run one type of aircraft lingo.
Tho, if ZL does goes to a sale, who knows, one of the UAE airlines might swallow it up, or 49% anyway.
===
Or, who knows tho, while VA might now directly take over ZL, Bain might do another winkie, ie, they buy out ZL and then onsell later on.

Australian domestic airlines can be 100% foreign owned. Just can’t have any OS services.

 

[p--and--t]

Maybe they could take ZL over, turn them into a middle of the market airline with lounges and a frequent flyer program but an unbundled offering at the back whilst rationalising the fleet around a unique type like the 737 and prop them up for a potential IPO.

That would be a novel idea!

....except for the airports all over the country that can't handle an aircraft of the size of 737 and populations that can't even sustain a SAAB without a generous gov subsidy

 

[HS-TQE]

Australian domestic airlines can be 100% foreign owned. Just can’t have any OS services.

Unless if they separate out their international services into a separate subsidiary and AOC that's 51% owned by "Australian Institutional Investors", like ANi, VAi 1.0 (Short and Long Haul) and VAi 2.0 (Short Haul) had done.

 

[drron]

Unless if they separate out their international services into a separate subsidiary and AOC that's 51% owned by "Australian Institutional Investors", like ANi, VAi 1.0 (Short and Long Haul) and VAi 2.0 (Short Haul) had done.

Tiger was 100% foreign owned and didn't have OS flights on the Australian version. As far as i am aware ZL has never had OS flights.

 

[AustraliaPoochie]

Maybe they, (the Admininstrators) should just sell ZL shares to the public, 51%, or all, and the rest to overseas, seeing that ZL props services still have to run/fly.
Its just their foray onto the 737s tha made it worst for them.
Not that I am financially trained, or mathematically minded, but if they have a niche market, like flying to the small towns, they should have stuck with that.
Not that I have flown their props planes, but hopefully, that part of the service can continue.
Hard to say, but they might have to shut the whole thing down, ala Ansett.
Leaves Link and Alliance, and the other FIFO to pick up the rest that ZL (if they dont make it) leave behind.
Guess have to deal with the success or not of VAs sale, then ZL.