Virgin Australia Financially Secure? [Now in Voluntary Administration]

[AisleSeat]

QLD government to bid for VA

Queensland government to bid for Virgin Australia airline

In his first act as Treasurer, Cameron Dick has appointed a government-owned investment company to "facilitate and manage the state’s bid for Virgin airlines".

www.smh.com.au

 

[tomlee1986]

QLD government to bid for VA

Queensland government to bid for Virgin Australia airline

In his first act as Treasurer, Cameron Dick has appointed a government-owned investment company to "facilitate and manage the state’s bid for Virgin airlines".

www.smh.com.au

want to be a state owned entity?

 

[Plutonus]

I think the quote from the Queensland Treasurer is of importance:

Mr Dick said the government's investment in the collapsed airline could take the form of "a direct equity stake, a loan, guarantee or other financial incentives".

 

[lang_13]

maybe they could service just queensland and the NT... could rename it queensland and northern territory air ... oh wait

 

[TheInsider]

I can't help but seeing that this is just a publicity stunt for the QLD government. Surely QF would be quite annoyed by this, not that they are getting money, but that they are not getting any govt loans as such.
Can't play favourites..

 

[flyingfan]

Didn't see this coming. If the Qld govt becomes an effective owner rather than merely propping them up like Holden, does that present significant potential for conflict of interest, particularly when it deals with QF?

 

[jakeseven7]

As a taxpayer in QLD I am completely and utterly against yet another stupid (potential) cash splash by this government.

The whole premise of this idea, spending tens of millions of tax payers money on is absolutely ridiculous.

I can only hope its just another BS publicity stunt from this very average government.

 

[antycbr]

I can't help but seeing that this is just a publicity stunt for the QLD government. Surely QF would be quite annoyed by this, not that they are getting money, but that they are not getting any govt loans as such.
Can't play favourites..

Have a look at a VA route map in QLD and combined with the HQ in BNE it makes more sense from a state development perspective, which was the previous job of the now treasurer. Not saying it makes political sense.

Post automatically merged: May 13, 2020

Can't play favourites..

The feds have said that, the QLD gov has never said that, and have been clear in their support for the home town airline.

 

[jakeseven7]

Have a look at a VA route map in QLD and combined with the HQ in BNE it makes more sense from a state development perspective, which was the previous job of the now treasurer. Not saying it makes political sense.

So just back and use Alliance, they operate a bunch of VA's QLD network anyway.

 

[jase05]

As a taxpayer in QLD I am completely and utterly against yet another stupid (potential) cash splash by this government.

The whole premise of this idea, spending tens of millions of tax payers money on is absolutely ridiculous.

I can only hope its just another BS publicity stunt from this very average government.

I thought I saw a statement saying that the QLD government would put no more in than the original $200m they offered to keep VA based in QLD

 

[jakeseven7]

The feds have said that, the QLD gov has never said that, and have been clear in their support for the home town airline.

Yes our moronic government loves a splash and dash. QF has a much larger presence in QLD than VA1.

The QLD government will never be a major owner, it will be howled down. So they will be a minority owner, probably of VA2 that will be no-frills and the first routes to go will be the marginal QLD routes anyway. Maybe they are just trying to buy a seat at the table to prevent this, who knows.

They spend, then think.

 

[antycbr]

So just back and use Alliance, they operate a bunch of VA's QLD network anyway.

An investment corporation such as QIC will make investment decisions that they think will provide maximum return for their shareholders but QIC is also a bit like a sovereign wealth fund according to the QLD gov. It also owns 25% of BNE airport so there’s interests in aviation already.

Post automatically merged: May 13, 2020

Yes our moronic government loves a splash and dash. QF has a much larger presence in QLD than VA1.

The QLD government will never be a major owner, it will be howled down. So they will be a minority owner, probably of VA2 that will be no-frills and the first routes to go will be the marginal QLD routes anyway. Maybe they are just trying to buy a seat at the table to prevent this, who knows.

They spend, then think.

Your political opinion of the QLD government can be resolved at the ballot box.

 

[jakeseven7]

Your political opinion of the QLD government can be resolved at the ballot box.

Believe me, we all tried!

 

[Standby]

To me it feels like trying to shore up flagging investor interest ahead of Fridays indicative bids deadline

 

[jakeseven7]

Clearly Branson has long forgot VA1....

Will be interesting to see if he actually stumps up some cash for VS....

Branson’s $780m desperate act

Virgin Group founder Sir Richard Branson is lining up a sale of a $780 million stake in his space business in a bid to save his flailing airline Virgin Atlantic.

www.news.com.au

 

[antycbr]

Believe me, we all tried!

We doesn’t equal a majority. Clearly a majority of voters have supported the Queensland Labor government up until now. Supporting tourism jobs is critical to Queensland coming back from Covid19 economically so I can see why this makes sense from a political frame.

The people against this are most likely like yourself and unlikely to vote for Labor anyway - this would be the calculation made inside the government. Given the timeframe the LNP, if elected in October may own a stake in a new VA. I don’t think people are too worried about debt any more it’s not like the federal LNP are in a strong place here.

 

[muppet]

.....Given the timeframe the LNP, if elected in October may own a stake in a new VA. I don’t think people are too worried about debt any more it’s not like the federal LNP are in a strong place here.

Agree with everything except ... parties don’t own government assets... Even though they often act like it.

It will be QLD taxpayers that own it.

 

[Cubiscus]

They'll find a buyer, its just on what terms and how much remains. Hopefully not as a LCC.

QLD are trying to do two things, ensure the HQ stays in BNE and baselining an offer to give Deloitte leverage so the sale doesn't have to involve cutting VA to the bone. At best they'll be minority owners.

Of course the new VA2 owners who’ll be the ones that decide what happens but interesting they still think a limited international network still has legs, especially Japan - which they have never flown to...

BNE to Japan started up recently. I'm guessing they see the 777s as assets that need to be used and international deployment is logical.

 

[antycbr]

Agree with everything except ... parties don’t own government assets... Even though they often act like it.

It will be QLD taxpayers that own it.

Yes I was more referring to an incoming LNP government owning it like all other public assets if there is an equity injection. Queenslanders are quite passionate about privatisation.

I’d be surprised if there was an equity injection probably some form of grant plus payroll tax waivers and other concessions.

 

[jase05]

Well Dutton hasn’t held back on the QLD government