Virgin Australia Financially Secure? [Now in Voluntary Administration]

[moa999]

There‘s also talk of Qantas offloading their stake in Jetstar Pacific. Likely loosing all investment they made for no return.

Lots of airlines where the equity is now worth zero, and BL Pacific has far less strategic importance to the Group versus say 3K Asia and even GK Japan

After all, it does seem unusual to have a 21 year old B747 valued in the balance sheet at more than it cost when purchased in the early 1990s DESPITE claiming depn on it every year?

Surprised anyone signed off on that.
But it should be fairly obvious looking at you depreciation.
The GFC also smashed the value of many aircraft, much like the current crisis will be doing.

 

[mrmerc500]

Read through a couple of pages, if not already posted here is the official administration notice:

Virgin Australia Holdings Ltd 100 686 226 | Voluntary Administration | Meeting | Select One | Published : 21/04/2020 | ASIC Notice Details

insolvencynotices.asic.gov.au

Hope to see the awesome virgin crew & airline on the other side of this. Best of luck guys!

 

[travel_bug]

Read through a couple of pages, if not already posted here is the official administration notice:

Virgin Australia Holdings Ltd 100 686 226 | Voluntary Administration | Meeting | Select One | Published : 21/04/2020 | ASIC Notice Details

insolvencynotices.asic.gov.au

Hope to see the awesome virgin crew & airline on the other side of this. Best of luck guys!

That list of entities is enough to make my eyes glaze over, I think the formal corporate structure that interlinks them would put me in the fetal position.

 

[dajop]

With LAX having a lot of competition, could a 777 make it from SYD or BNE to SEA?

Not that I think that in a post-COVID, post-VA-in-administration world, that this would be even remotely likely, for reference SYD-SEA is shorter than MEL-LAX, which of course VA did do with the 777 pre-COVID.

 

[Cubiscus]

With LAX having a lot of competition, could a 777 make it from SYD or BNE to SEA?

SEA is a DL hub which would be good for connectivity. Fair bit of cargo traffic still possible from there too I imagine.

As much as I love SEA would they earn more on that route than LAX or SFO?

 

[jakeseven7]

Some interesting developments!

BGH Capital and Australian Super wade into the bidding wars for the resurrection of VA Mark 2.

Meanwhile Melbourne Aiport comes out swinging saying VA Mark 2 being based in Brisbane is a waste of time and is pitching to become the new home base.

Melbourne Airport pitches to become Virgin's home base — The Age

Melbourne Airport has made a bold pitch to become Virgin Australia's new home base, arguing the collapsed airline must walk away from its Brisbane base.

apple.news

 

[aaronm]

Meanwhile Melbourne Aiport comes out swinging saying VA Mark 2 being based in Brisbane is a waste of time and is pitching to become the new home base.

GIven that Melbourne will overtake Sydney in population sometime in the coming decade it certainly makes sense for an airline to be based there, however QLD has fewer big company HQs and will likely fight harder to keep VA in Brisbane.

 

[Cubiscus]

They should be able to extract some strong concessions from the states regardless of where the future base is.

 

[kamchatsky]

GIven that Melbourne will overtake Sydney in population sometime in the coming decade it certainly makes sense for an airline to be based there, however QLD has fewer big company HQs and will likely fight harder to keep VA in Brisbane.

I think it depends on which state will throw the most money at Virgin 2. QLD is throwing $200M, So VIC will need to throw in far more than that to make it worthwhile, because of the cost of moving staff and equipment etc.

 

[tomlee1986]

I think it depends on which state will throw the most money at Virgin 2. QLD is throwing $200M, So VIC will need to throw in far more than that to make it worthwhile, because of the cost of moving staff and equipment etc.

I think it would be a good thing if Melbourne becomes a hub for VA - this means Melbourne Airport could have a bigger upgrade for the future - as we all know Melbourne is growing very rapidly and needs to upgrade Tulla airport for the future

 

[Cubiscus]

And the domestic terminal VA use in Melbourne is horrible

 

[travel_bug]

And the domestic terminal VA use in Melbourne is horrible

Or there’s a last minute terminal change to Terminal 4 on the other side of the airport and you see all the great shops and food court that Jetstar and Tiger customers get, while if you don’t have lounge entry, the best you get with VA is a boost juice

 

[Must...Fly!]

And the domestic terminal VA use in Melbourne is horrible

The refit was well and truly underway. It isn't that bad.

 

[Mogul]

Jim's.....

 

[jakeseven7]

I think it would be a good thing if Melbourne becomes a hub for VA - this means Melbourne Airport could have a bigger upgrade for the future - as we all know Melbourne is growing very rapidly and needs to upgrade Tulla airport for the future

VA could also move their maintenance they do in AU to Avalon as well perhaps.... (If MEL didn't have enough room for that). VIC is actually quite well set up for it all.... And I'm a queenslander! lol

 

[AustraliaPoochie]

Pity none of the states will work together to help VA.
All they do at the moment is bicker or one up (person) ship.

 

[jase05]

Pity none of the states will work together to help VA.
All they do at the moment is bicker or one up (person) ship.

Most governments tend to do what is required to stay in power at the next election.
Imagine say the Queensland government giving VA $200m and then they pack up and move to Victoria for $500m. The government would be thrown out at the next election

 

[jakeseven7]

Most governments tend to do what is required to stay in power at the next election.
Imagine say the Queensland government giving VA $200m and then they pack up and move to Victoria for $500m. The government would be thrown out at the next election

Do you mean the VIC gov or the QLD gov being thrown out?
I'm not so sure about that (being a Queenslander)

 

[Bagpuss]

That list of entities is enough to make my eyes glaze over, I think the formal corporate structure that interlinks them would put me in the fetal position.

Some are companies which just have aircraft assets. IE they "lease" the aircraft to Virgin Australia. Expect it is for accounting / security.

Ah well, Tiger and VARA are in there which I thought they may have kept one out. Probably didn't make any difference.

 

[jase05]

Do you mean the VIC gov or the QLD gov being thrown out?
I'm not so sure about that (being a Queenslander)

Queensland.
If the QLD government give VA $200m and then VA nicked off to Victoria and several thousand Queenslanders lost their jobs I reckon there would be some backlash