Virgin Australia Financially Secure? [Now in Voluntary Administration]

[pauly7]

Advisers seek front row tickets for Virgin Australia

Virgin has the potential to be the next Ansett Australia in more ways than one.

www.afr.com

No concrete facts basically just saying there is a buzz in the insolvency industry. Not sure the purpose of the article.

Purpose = clicks = money

 

[andrewpf]

Advisers seek front row tickets for Virgin Australia

Virgin has the potential to be the next Ansett Australia in more ways than one.

www.afr.com

No concrete facts basically just saying there is a buzz in the insolvency industry. Not sure the purpose of the article.

This is a few days old, but presents a contrary view...

Virgin Australia to withstand virus shock: Fitch

Analyst Kelly Amato said the nation's second-largest airline was well equipped to deal with the crisis due in part to its healthy liquidity.

www.afr.com

 

[Isochronous]

Ridiculous article.

 

[moa999]

How fit you were before has little bearing on this current reality.

How fit you were before determines whether you can ride it out.

Airlines like Norwegian DY who have been waking a tightrope for years now have 100kph winds blowing as well

 

[Must...Fly!]

How fit you were before determines whether you can ride it out.

Airlines like Norwegian DY who have been waking a tightrope for years now have 100kph winds blowing as well

You could have $3b in the bank and go to the wall, @moa999

There is no riding out what's coming. It is that simple. This is not an economic depression, a loss of confidence, or an industrial relations dispute.

What is unfolding as we type is a catastrophic event and the only way the industry itself will be there to serve us on the other side of this pandemic will be with significant legislative help from government, and probably some funding too.

 

[I love to travel]

You could have $3b in the bank and go to the wall, @moa999

There is no riding out what's coming. It is that simple. This is not an economic depression, a loss of confidence, or an industrial relations dispute.

What is unfolding as we type is a catastrophic event and the only way the industry itself will be there to serve us on the other side of this pandemic will be with significant legislative help from government, and probably some funding too.

The government will not be able to afford to help everyone and every industry. People have to get their head around that. We have had good times for a long time(farmers excepted) That said I think it is in the national interest not to have airline monopoly so VA as the weakest should be helped.

 

[jase05]

The government will not be able to afford to help everyone and every industry. People have to get their head around that. We have had good times for a long time(farmers excepted) That said I think it is in the national interest not to have airline monopoly so VA as the weakest should be helped.

Both should and will be helped if push comes to shove IMO
We are a nation that relies on International tourists and due to the size of our country and distance we need a strong domestic system aswell.

 

[pauly7]

Both should and will be helped if push comes to shove IMO
We are a nation that relies on International tourists and due to the size of our country and distance we need a strong domestic system aswell.

Agreed there will be relief / support for both. Guarantees etc. Both will also have to come to the party as well there will be some strings attached I’m sure.

QF as the flag carrier will be required to jump start the international tourist flow back in once we get through this I wonder if the government will underwrite some routes for a while to assist.

 

[jase05]

Agreed there will be relief / support for both. Guarantees etc. Both will also have to come to the party as well there will be some strings attached I’m sure.

QF as the flag carrier will be required to jump start the international tourist flow back in once we get through this I wonder if the government will underwrite some routes for a while to assist.

I think you are spot on and probably a good idea to perhaps underwrite a few routes to get the wheels in motion again so to speak.

 

[jonboixxx]

"has the insolvency industry abuzz"
That AFR article pffffft. Pure scuttlebutt at this stage. Is there even a code for so-called journalists anymore and why does it take three of them to write 15 poor sentences?

 

[Saab34]

The last time QF asked for Government Cash they said if you want it, Virgin is getting it also. They declined.

 

[pauly7]

The last time QF asked for Government Cash they said if you want it, Virgin is getting it also. They declined.

Is that what happened.....

 

[wannabeinvestmentbanker]

European airlines are in the early stages of getting some help:

The chairman of Virgin Group will urge the government to provide up to £7.5bn of emergency state support to rescue the UK aviation industry and ease slot rules for a year.

The French government is preparing to come to the aid of Air-France KLM through loans where the Government only has a 14% stake.

 

[eastwest101]

Yes - would seem that slot restriction holidays, possibly tax holidays and other sorts of support to keep idle employees, aircraft and other fixed costs under control may be required. Keeping pilots current and licenced will be another little issue that will need to be looked at. It will be interesting to see how the countries that have large and necessary domestic networks (such as Australia, the USA and Canada) fare, if domestic travel is allowed to continue, if these countries close off domestic travel as well then all airlines in the US, Canada, Australia etc will be on some sort of government life support.

 

[moa999]

VAHHA bonds trading below $50 this morning.. that's the market take on it - requiring a ~29% return

 

[Revenge]

How do you know KF won't invalidate the points if VA collapse and VFF don't pay SQ?

I don't. But it seemed the best option in the circumstances, given I'm not willing to fly anywhere with the points right now.

I wonder if VA will shut this off soon... (temporarily).

Exactly why I did this now. Wouldn't surprise me if they turn it off when they see a large volume of points moving across. I also moved the balance of my Flybuys to Velocity before I transferred them to Krisflyer, because I don't see the value in Flybuys without VA being in business.

 

[Vic]

Aircraft Leases range from $200,000 to 1m for a wide body per month. There is very little in way of getting out of it. There was an Article recently about Air Asia who asked for an extension on lease payment for a month or two on some A330s. The lessor said they would be lucky to give them a week.

Two words:

Force Majeure

 

[Harthagan]

also moved the balance of my Flybuys to Velocity before I transferred them to Krisflyer, because I don't see the value in Flybuys without VA being in business.

You do realise that flybuys are as good as cash for groceries at Coles? Ironically something that will be a lot more useful than airline points in the coming days. And if this thing plays out as predicted Singapore Airlines will be in as much trouble as anyone.

 

[Revenge]

You do realise that flybuys are as good as cash for groceries at Coles? Ironically something that will be a lot more useful than airline points in the coming days.

Good points! (pardon the pun)

 

[Harthagan]

Good points! (pardon the pun)

I actually wish you could transfer velocity points into flybuys lol. I wonder if you can transfer velocity to HHonors. I know the other direction is possible