Virgin Australia Financially Secure? [Now in Voluntary Administration]

[tomlee1986]

QLD government wisely retreated from the process and will just work with any successful new owner to try and keep VA2 in QLD.

They will face off with VIC and NSW to do so though!

Virgin deadline day: Deloitte receives eight indicative offers – Australian Aviation

australianaviation.com.au

As stated before, it is really rare to have a state or nation to enter into companies as an enterprise, most prefer moving into private ownership, not the reverse

 

[desafinado74]

if that is the case the indigo partners is the front runner, but anything is possible still

Why do you think Indigo is the front runner ?
I thought the ACCC (and maybe the Federal govt) would prefer two full service airlines ?

If Indigo wins the bid, they might just keep Virgin as a full service or a hybrid airline, as it will cost a lot to overhaul Virgin to a low cost airline.

 

[tomlee1986]

Why do you think Indigo is the front runner ?
I thought the ACCC (and maybe the Federal govt) would prefer two full service airlines ?

If Indigo wins the bid, they might just keep Virgin as a full service or a hybrid airline, as it will cost a lot to overhaul Virgin to a low cost airline.

because just an feeling.. no special reason.. but i feel they might have the most funds... (pls dont bash me if i am incorrect - just a personal gut feeling, nothing more)

 

[desafinado74]

because just an feeling.. no special reason.. but i feel they might have the most funds... (pls dont bash me if i am incorrect - just a personal gut feeling, nothing more)

Don't worry i am not gonna bash you. But i hope you are wrong though with your gut feeling

 

[p--and--t]

As stated before, it is really rare to have a state or nation to enter into companies as an enterprise, most prefer moving into private ownership, not the reverse

Ah, but the gov can only move the business to private enterprise if the gov owned it in the first place LOL

Quite a few examples of gov's saving businesses by buying major shareholdings, putting representatives on the boards, and then selling out later on.

 

[jakeseven7]

This may still take a while to pan out as until the Australian state borders are open then no new owner is going to want to take over.

I hope VAmk2 doesn't go down the path of ULCC, I am hoping something between JQ and Qantas but likely closer to Jetstar.

But they can't take a while to let it pan out, because VA1 is still burning an huge amount of cash - to the point the administrators may actually run out BEFORE their target date of a June sale is achieved.

So this whole thing has to be accelerated if anything, or VA1 might actually have to be liquidated.... which is maybe what some bidders actually want to happen....

An opportunity for airports to work a lounge operator network + Priority Pass?

Very interesting and a not a bad idea!

Certainly VA's lounges are in the right places for this to happen and if VA2 becomes more of an LCC then they could outsource their lounges to a lounge operator and only provide access to Platinum or something....

 

[muppet]

.....Certainly VA's lounges are in the right places for this to happen and if VA2 becomes more of an LCC then they could outsource their lounges to a lounge operator and only provide access to Platinum or something....

I think if it goes LCC the status levels will go with it, along with lounge access and all the perks.

 

[jase05]

I think if it goes LCC the status levels will go with it, along with lounge access and all the perks.

And even if they were kept I can’t imagine too many Platinums flying on some rubbish LCC. If I wanted that I’d fly on Junkstar

 

[tomlee1986]

I think if it goes LCC the status levels will go with it, along with lounge access and all the perks.

that is the reason for LCC - you can choose what you want to pay for..., not given as a package

 

[Doctore1003]

Some more info on Cyrus Capital: It's based in the US and has a presence in Europe, and recently led a consortium that owned British regional airline Flybe, before it went into administration in March. Virgin Atlantic was also in the consortium, and the plan was to rebrand the airline as "Virgin Connect".

 

[p--and--t]

Some more info on Cyrus Capital: It's based in the US and has a presence in Europe, and recently led a consortium that owned British regional airline Flybe, before it went into administration in March. Virgin Atlantic was also in the consortium, and the plan was to rebrand the airline as "Virgin Connect".

Wow, that sounds like fun for their shareholders, invested in one airline and lost everything, lets have another go, weeeeeeeee.

 

[moa999]

Are the administrators making a total hash of this or is it just media speculation?

More likely bidders playing games.
In any competitive situation you want to reduce the competition

 

[Doctore1003]

AFR has just published a full story about Cyrus. It backed Branson when he set up Virgin Atlantic and also has large holdings in Delta and AA.


Meet the Wall Street legend now fighting for Virgin

 

[BNEFlyer]

More likely bidders playing games.
In any competitive situation you want to reduce the competition

Media speculation is rife with this situation. And for a "source" to "confirm" that 1. There's only four bidders and 2. That the ones listed are the only ones, says there's probably more to the story.

 

[HS-TQE]

Wow, that sounds like fun for their shareholders, invested in one airline and lost everything, lets have another go, weeeeeeeee.

This sounds like two certain stood down, well *soon to be former* shareholders.... *cough*Singapore*cough* *cough*Etihad*cough*.

Post automatically merged: May 18, 2020

Brookfield has withdrawn from the VAH bidding process - due to frustations with the Deloitte-run administration.

Shock withdrawal rocks Qld’s bid to relaunch Virgin

A shortlist of four bidders in the push to relaunch Virgin Australia has been released as Queensland’s preferred partner in a joint-bid withdraws from the race.

www.thechronicle.com.au

 

[RooFlyer]

Virgin sale: Bain Capital could pair up with Richard Branson’s Virgin Group

Expectations are that Bain Capital could pair up with Richard Branson’s Virgin Group should it advance in its bid for Virgin Australia, given that the pair have a joint venture in the cruise industry with Virgin Cruises.

Should the buyer of the local airline stick with the Virgin brand, it is expected that Mr Branson’s Virgin Group would be entitled to 1 per cent of annual revenue.

Branson + cruising. What could possibly go wrong

 

[jakeseven7]

This sounds like two certain stood down, well *soon to be former* shareholders.... *cough*Singapore*cough* *cough*Etihad*cough*.

Post automatically merged: May 18, 2020

Brookfield has withdrawn from the VAH bidding process - due to frustations with the Deloitte-run administration.

Shock withdrawal rocks Qld’s bid to relaunch Virgin

A shortlist of four bidders in the push to relaunch Virgin Australia has been released as Queensland’s preferred partner in a joint-bid withdraws from the race.

www.thechronicle.com.au

This is turning into a complete train wreck.....

I honestly think the bidders want a liquidation. I feel it is an orchestrated attempt to drive VA1 completely under.

 

[jase05]

This is turning into a complete train wreck.....

I honestly think the bidders want a liquidation. I feel it is an orchestrated attempt to drive VA1 completely under.

I’m starting to get that feeling too
Seems to be turning into a fiasco

 

[HappyFlyerFamily]

Final four confirmed: Bain Capital, BGH Capital, Indigo Partners and Cyrus Capital Partners.

Virgin Australia's fantastic four, shortlist confirmed

Virgin Australia and its administrator Deloitte have wrapped up a long weekend of negotiations.

www.afr.com

Sorry to ask a simpleton’s question.
Can someone please give info on these shortlisted bidders and their likely proposal (ie full service, low cost, international/domestic)?

 

[muppet]

This is turning into a complete train wreck.....

I honestly think the bidders want a liquidation. I feel it is an orchestrated attempt to drive VA1 completely under.

That or they wanted to pick up the operation for a pittance and now seeing there’s competition driving the price up, have decided to just white-ant the whole process.

There’s always plenty of losing bidders at auctions complaining the auctioneer and winning bidder had no clue.