Virgin Australia Financially Secure? [Now in Voluntary Administration]

[Standby]

I note REX shares are also in a trading halt until Thu. No doubt catching up on the industry wide doom and gloom

 

[jase05]

What is the transfer rate Virgin to SQ?

0.64

 

[ozstamps]

0.64

Thanks - I never transfer points - was there not a bonus deal recently?

 

[Mogul]

I don't believe the Government would let either VA or QF fail, especially by picking one over the other. Both airlines are entrenched within the Tourism industry and by either one failing would have such wide reaching ramifications that the Government would not let it happen especially in these times.

 

[PaulllM]

I don't believe the Government would let either VA or QF fail, especially by picking one over the other. Both airlines are entrenched within the Tourism industry and by either one failing would have such wide reaching ramifications that the Government would not let it happen especially in these times.

They wont let QF fail and it is highly unlikley they will let VA or Rex fail, this isn't Ansett all over again, Feds are much more aware of the economic impacts if one of the 3 domestic airlines falls over and the backlash they will get from the broader voting public which has a stronger protectionists view than they did in 20 years ago. In times of crisis Nationalism becomes a powerful force.

 

[dajop]

They wont let QF fail and it is highly unlikley they will let VA or Rex fail, this isn't Ansett all over again

And not to forget 20 years ago, DJ was there to pick up some of the slack on the golden triangle,, whilst Skywest and Rex emerged fairly quickly, as independent brands from the ashes of Ansett (and indeed AN's administrators very quickly restarted the operations of Kendall/Hazelton Saabs and Metroliners).

But the problem with AN collapse was not the gutting of demand (well temporarily after 9-11, but not like today), but rather decades of mismanagement.

 

[bcworld]

Thanks - I never transfer points - was there not a bonus deal recently?

There are regular bonuses Flybuys > Velocity, don't recall anything involving KF.

I think I'll be transferring my 450k+ points to KF. I planned to burn for SQ flights anyway and the availability via Velocity was non-existent.

 

[dajop]

With all these people moving Velocity points to Krisflyer, SQ should have plenty of cash to pump into VA to keep it afloat

 

[HS-TQE]

With all these people moving Velocity points to Krisflyer, SQ should have plenty of cash to pump into VA to keep it afloat

SQ has ongoing issues financially of their own to help VA as of the moment.

This is in addition to SQ's mediocre record at managing investments in Oceania (Air NZ/Ansett Group, Tiger Airways Australia and Virgin Australia). Also to add SQ's failure with their VS investment.
Not a good track record for a company seen as a "so called saviour"

 

[melb78]

wish for thinking that VA takes over REX if they go belly up.

 

[dajop]

SQ has ongoing issues financially of their own to help VA as of the moment.

Sorry, I thought the and particularly the would indicate I was not being serious. Just a tongue and cheek look at the cash outflow problem that Velocity point transfers to KF could generate to exacerbate the situation.

 

[PaulllM]

And not to forget 20 years ago, DJ was there to pick up some of the slack on the golden triangle,, whilst Skywest and Rex emerged fairly quickly, as independent brands from the ashes of Ansett (and indeed AN's administrators very quickly restarted the operations of Kendall/Hazelton Saabs and Metroliners).

But the problem with AN collapse was not the gutting of demand (well temporarily after 9-11, but not like today), but rather decades of mismanagement.

And that it, who is there to pick up the scraps this time? No one, and the Gov does not want a sole operator holding a monopoly over the Australian domestic market. Look how well its worked in the regions.....

 

[pauly7]

Sorry, I thought the and particularly the would indicate I was not being serious. Just a tongue and cheek look at the cash outflow problem that Velocity point transfers to KF could generate to exacerbate the situation.

It’s okay I think most of us got it

 

[jase05]

Some talk that the government have set aside a $750m package for the airline industry

 

[Must...Fly!]

Government will apparently waive federal excise on jet fuel and Air Services Australia ATC fees for airlines

 

[jakeseven7]

Government will apparently waive federal excise on jet fuel and Air Services Australia ATC fees for airlines

Mmmmmm hmmmmm and then....?

 

[Must...Fly!]

Mmmmmm hmmmmm and then....?

Well it's a pretty swift move and does send a strong message.

 

[Carrots]

Equates to a $715m saving apparently.

 

[pauly7]

Equates to a $715m saving apparently.

Virgin can lose that pretty damn quick judging from past performance

Jokes aside, it’s a good start.

 

[moa999]

SQ is arguably worse-off
International travel will go to almost zero..
They don't have a domestic industry