Senior Virgin execs bail out after more Bain restructuring

[Inlander]

Given that VA lost money hand over fist for years, the loss of the head of revenue may be a positive.

For those who have been in MEL VA domestic, there's lots and lots of pax and loads are good. Whether yield is sufficient is an open question, but VA has rebounded to have a decent percentage of market share.

Virgin Australia surpasses Qantas in January domestic market share

Virgin Australia has pipped rival Qantas to claim the highest share in the Australian domestic travel market in January, as interstate border restrictions ease and airlines ramp up flying.

www.flightglobal.com

 

[moa999]

Think the bondholders will face an uphill battle.
Don't think anyone can claim that Covid impacts should have been considered..

As for Bain, I suspect their investment thesis was a quick recovery to a pre-Covid world and a quick flip IPO.
Doubt they were expecting the drawn out nature of Covid, or the entry of Rex and Bonza.

 

[Inlander]

Think the bondholders will face an uphill battle.
Don't think anyone can claim that Covid impacts should have been considered..

As for Bain, I suspect their investment thesis was a quick recovery to a pre-Covid world and a quick flip IPO.
Doubt they were expecting the drawn out nature of Covid, or the entry of Rex and Bonza.

Yes interesting times ahead. We are still on the climb out of the COVID Bear market, and now found ourselves with even more airlines offering product. One can theorise on the future(Mergers etc), but its hard to see where sustained profitability will come from and add into that the impact of Fuel cost going sky high(pardon the pun).

 

[HS-TQE]

Think the bondholders will face an uphill battle.
Don't think anyone can claim that Covid impacts should have been considered..

As for Bain, I suspect their investment thesis was a quick recovery to a pre-Covid world and a quick flip IPO.
Doubt they were expecting the drawn out nature of Covid, or the entry of Rex and Bonza.

Or the rise of competing Private Equity Companies in the Australian Airline industry such as USA's 777 Partners and Singapore's PAG.

 

[ozstamps]

Was terrible, terrible, terrible, timing for Bain. Could hardly have been worse. That, no-one could have seen. They also were not expecting 2 new domestic competitors.

Yes, they I am sure, were aiming for a quick flip in a year or two after purchase, for billions of easy profit. And move on to the next Corporate carcass etc.

Instead, they have needed to pour in rivers of money, just to keep it limping along somehow. Not in the playbook.

In THEORY the good ship Virgin should again be sailing smoothly right around now seeing COVID issues have largely lifted. Not so.

Things are a disaster in the past month or so from where I sit. My inbox is filled with a stream of Virgin notifications of cancelled flights, flights moved hours or even a day apart, planes ever-changing, seats ever-changing, and costing me endless hours of time on phones to unravel the mess, and raised blood pressure, and have lost $2000 in forfeited hotel bookings in the past month.

It is getting so that I am loath to book anything more than a week out unless the Golden Triangle routes. Key staff in all areas are leaving the sinking ship in droves, as we have seen here, which tells us the internal demoralised story - an unfolding mess.

Cost cutting Jayney seems to be the main reason, and that is not a good look if they hope to flick pass the airline, as a juicy, well run, with loyal and long established executive ranks, and a stable and coherent, fully focused entity.

Truly soaring avgas prices in the past month just adds to the current woes. A massive and unbudgeted for cost. I bet little had been forward hedged, as 3 or 6 months back who knew how much fuel they'd be buying? Double whammy. Paying full retail right now for each tank, not unlike motorists really. OUCH.

 

[antycbr]

Was terrible, terrible, terrible, timing for Bain. Could hardly have been worse. That, no-one could have seen. They also were not expecting 2 new domestic competitors.

Yes, they I am sure, were aiming for a quick flip in a year or two after purchase, for billions of easy profit. And move on to the next Corporate carcass etc.

Instead, they have needed to pour in rivers of money, just to keep it limping along somehow. Not in the playbook.

In THEORY the good ship Virgin should again be sailing smoothly right around now seeing COVID issues have largely lifted. Not so.

Things are a disaster in the past month or so from where I sit. My inbox is filled with a stream of Virgin notifications of cancelled flights, flights moved hours or even a day apart, planes ever-changing, seats ever-changing, and costing me endless hours of time on phones to unravel the mess, and raised blood pressure, and have lost $2000 in forfeited hotel bookings in the past month.

It is getting so that I am loath to book anything more than a week out unless the Golden Triangle routes. Key staff in all areas are leaving the sinking ship in droves, as we have seen here, which tells us the internal demoralised story - an unfolding mess.

Cost cutting Jayney seems to be the main reason, and that is not a good look if they hope to flick pass the airline, as a juicy, well run, stable and coherent, fully focused entity.

Truly soaring avgas prices in the past month just adds to the current woes. A massive and unbudgeted for cost. I bet little had been forward hedged, as 3 or 6 months back who knew how much fuel they'd be buying? Double whammy. Paying full retail right now for each tank, not unlike motorists really. OUCH.

That’s your perspective. Meanwhile I’ve flown every weekend this month, been on time or early, had excellent service in paid business class and also redeemed a business award transpacific on AC.

The Sydney lounge is packed - how do I know, I’m sitting here right now. They have sausage rolls and party pies - excellent choice for a Friday arvo.

Qantas are also fully exposed to the fuel price.

Your mileage may vary.

 

[ozstamps]

YMMV indeed.

Try booking Sydney-Townsville, Sydney-Broome, and even a once simple SYD-ADL and tell me there are no changes. They have been endless.

I waste time re-jigging it all and they then change it all AGAIN.

They are a MESS right now.

Ma and Pa Kettle booking their twice a year SYD-MEL will see no changes most likely, (and will book Jetstar anyway due to lower cost) but that is not the entire Virgin network.

 

[jase05]

YMMV indeed.

Try booking Sydney-Townsville, Sydney-Broome, and even SYD-ADL and tell me there are no changes. They have been endless.

I waste time re-jigging it all and they then change it all AGAIN.

They are a MESS right now.

Yeah, I’m having a little trouble with ADL-SYD and ADL-CBR as of late but nothing too major or of great inconvenience yet touchwood. ADL-CBR seems a issue with both of the majors as I’ve had 1 QF cancelled with no suitable alternative and another that has been changed and re-ticketed twice already in the few weeks since I booked it. Hard work for all in the industry I suspect still for a little while but the airports are busier and the lounges are full so slowly but surely we are getting there

 

[antycbr]

YMMV indeed.

Try booking Sydney-Townsville, Sydney-Broome, and even a once simple SYD-ADL and tell me there are no changes. They have been endless.

I waste time re-jigging it all and they then change it all AGAIN.

They are a MESS right now.

Ma and Pa Kettle booking their twice a year SYD-MEL will see no changes most likely, (and will book Jetstar anyway due to lower cost) but that is not the entire Virgin network.

I’ve had just as many changes on QF. All airlines are struggling with crewing.

 

[ozstamps]

Do you have any actual EVIDENCE yo/u can share of Virgin 'crewing' issues that are causing these mad and constant sked changes as at 25/3/22?

Cost cutting more like.

 

[jakeseven7]

Do you have any actual EVIDENCE yo/u can share of Virgin 'crewing' issues that are causing these mad and constant sked changes as at 25/3/22?

Cost cutting more like.

I guess the end result is the same to VA2 passengers whether it be cost cutting or covid related crewing issues though right....?

 

[ozstamps]

Yes, a mess.

But airily blaming it on 'crewing issues' is not the answer.

 

[antycbr]

Do you have any actual EVIDENCE yo/u can share of Virgin 'crewing' issues that are causing these mad and constant sked changes as at 25/3/22?

Cost cutting more like.

Speaking to crew on multiple flights.

No different to any other industry right now.

 

[eastwest101]

Yes, a mess.

But airily blaming it on 'crewing issues' is not the answer.

I think it means that both (or all?) airlines are having crewing issues at the moment, the airline industry laid off a lot of workers since 2020 and would be considered an extremely unattractive option for anyone young who wanted job security. Probably a lot of mid-level and experienced crew have taken early retirement or found other more rewarding careers in different industries, especially if they have been stood down for a lengthy period. Add to that, the increased workload for the 'survivors' of the lay-offs and Covid disruption to normal recruitment/training and retraining and I imagine some people are running out of currency on their qualifications and need to be recertified/rechecked and/or are also being sick of managed in a 'crisis' and 'emergency triage' style of management (and thats even if management are there anymore - nothing more disturbing to a workforce than seeing management desert like rats off a sinking ship).

Pay and conditions would have taken a hit, as would have morale. If they are nickel and dimeing customers on spirits and other catering stuff and last minute aircraft substitutions and combining multiple flights into one you can bet that the workforce is feeling the same cost pressures. Record low unemployment and increased wage expectations would be part of the story?

 

[jase05]

Do you have any actual EVIDENCE yo/u can share of Virgin 'crewing' issues that are causing these mad and constant sked changes as at 25/3/22?

Cost cutting more like.

I do know a couple of VA workers and they are doing a decent recruiting drive currently and yes they have been struggling for numbers across several areas of the business. Hopefully it’s fixed soon

 

[jakeseven7]

I do know a couple of VA workers and they are doing a decent recruiting drive currently and yes they have been struggling for numbers across several areas of the business. Hopefully it’s fixed soon

Yes them and the rest of Australia

Hopefully international borders now open and no testing shortly as well will help.

 

[jase05]

Behind paywall but Bain stating they are in it for the long haul

Bain Capital reveals plans for Virgin Australia

Virgin Australia chairman Ryan Cotton has delivered his first address to the companys 6000 employees, telling them a public listing on the ASX would be a vote of confidence in the airline.

amp.theaustralian.com.au

 

[Scarlett]

Did the chairmans address look like this?

 

[jakeseven7]

Behind paywall but Bain stating they are in it for the long haul

Bain Capital reveals plans for Virgin Australia

Virgin Australia chairman Ryan Cotton has delivered his first address to the companys 6000 employees, telling them a public listing on the ASX would be a vote of confidence in the airline.

amp.theaustralian.com.au

Nothing new in this, they were always going to retain a minority stake after the sell down. That’s been previously reported.

I don’t think I’m allowed to repost full articles on here that are paywalled am I?

 

[ozstamps]

Not sure of policy here, but I own and run a huge board with over 8 million posts, and our policy is posting the first 5 or 6 pars of such stories is OK, as long as correct attribution and original link is given.

Those super interested will pay for the rest, which is what Mr Murdoch and other owners want of course. Those that subscribe, are acting as wider PR folks for owners! Just not lifting complete articles.