Virgin Australia Financially Secure? [Now in Voluntary Administration]

[Must...Fly!]

Why are my statements invalid but a journalists prefaced with "sources indicate" are?

 

[jase05]

The points you raise are unsubstantiated and unsourced and unproven personal VIEWS of yours. Not one shred of evidence offered here by you of your allegations. Totally unfounded gossip I do not respond to - sorry. FACTS are better to address.

To the best of my knowledge no staff have been retrenched yet that is why you haven’t heard of it but can assure you there are staff that have been asked to take leave without pay for the next 4 weeks and a roster system is being implemented. I know this for sure because I work with them but I’m happy to tell the 8 blokes at ADL airport that I work with that some random bloke on the internet says it is all lies because he hasn’t heard of it. I’m sure it will make them feel better. With the amount of flight suspensions and route cuts you can’t honestly believe VA are paying them to stand around and twiddle their thumbs. PS is on record as saying he has reached out to partners to see if any VA employee affected by this can pick up work with them

 

[Harthagan]

I'm shocked that Virgin haven't announced any staff being stood down. Maybe not to the extent of Qantas given they have a much smaller international footprint but I would have thought 1/3 would be excess to current needs. One thing is for certain though, they sure as hell have not put them on the phone lines!

I'm weighing up transfering my 400k velocity points to KF. Only thing stopping me is that there is no telling how long international flying will be in lockdown for. With Australia being one of the better off countries so far in terms of outbreaks our boders could be closed for possibly years. I'd rather take the risk of being able to use my velocity points at least domestically, of course that depends on virgin not collapsing.

As depressing as it sounds, gift cards may be the only "safe" play left

 

[Must...Fly!]

Actually they have put them on the phone lines, and redeployed 100 staff who have experience with SABRE to man the phones in Brisbane.

Perhaps instead of asking why VA haven't announced in public what they are doing in regards to work force planning, ask why Qantas did.

VA have stated outright that LWOP, stand downs are coming and reduced rosters are coming in now. Best wishes to @jase05 but I fear your informed views will like mine be tossed on the scrap heap.

 

[Harthagan]

Perhaps instead of asking why VA haven't announced in public what they are doing in regards to work force planning, ask why Qantas did.

Because it's the standard procedure. We heard plenty about 750 axed virgin jobs late last year. If ever there was a time for layoffs it would be right now. This situation is not just gonna blow over. And even by some miracle it did sort itself out in the next few months, the airlines in particular will still be recovering for a long time to come.

 

[hydrabyss]

This comment may explain why Qantas was quick too lay off staff.

Airlines Qantas and Virgin Australia are also under pressure and have grounded their international fleets. While Virgin is hurting badly with large debts, it has $1 billion of cash on its balance sheet. Rival Qantas has $1.7 billion on its books. Analysts at Credit Suisse on Thursday however warned that Qantas would burn through its cash quickly.

 

[jase05]

Because it's the standard procedure. We heard plenty about 750 axed virgin jobs late last year. If ever there was a time for layoffs it would be right now. This situation is not just gonna blow over. And even by some miracle it did sort itself out in the next few months, the airlines in particular will still be recovering for a long time to come.

Obviously PS is trying to delay permanent layoffs for as long as possible by bring in LWOP and a roster system whilst keeping enough staff to run a skeleton domestic operation. If domestic travel bans kick in then yes I think we will see some permanent layoffs but at the moment staff working on a on/off roster is better than nothing for the employees

 

[hydrabyss]

Obviously PS is trying to delay permanent layoffs for as long as possible by bring in LWOP and a roster system whilst keeping enough staff to run a skeleton domestic operation. If domestic travel bans kick in then yes I think we will see some permanent layoffs but at the moment staff working on a on/off roster is better than nothing for the employees

Hopefully it does not go that far and this is from the WA Premier.

West Australians are being urged avoid non-essential interstate travel.

“If you don’t need to go interstate, please don’t,” WA Premier Mark McGowan said during a briefing on March 19.

However, he added shutting state borders entirely was not currently being considered, as consequences “would be absolutely catastrophic and dire.”

 

[AustraliaPoochie]

I wonder whether or if we will have another "Airline Ticket Levy" for the Aust govt to recoup the lost amount of money they have talked about providing to the airlines.
Remember the Ansett levy, where every flying in the early 2000s had to pay that $10 levy each time they flew.
The Aust govt at that time had the idea to recoup their (the Aust govt's expenses, re super and employee entitlement recoup/funds to provide to Ansett employee (at that time)).
I won't put it past this current Aust govt, if it wins te 2022 Aust fed election to do something like a levy.

 

[Must...Fly!]

Can we keep this thread on the topic of Virgin Australia's long term financial stability, please.

Hopefully it does not go that far and this is from the WA Premier.

West Australians are being urged avoid non-essential interstate travel.

“If you don’t need to go interstate, please don’t,” WA Premier Mark McGowan said during a briefing on March 19.

However, he added shutting state borders entirely was not currently being considered, as consequences “would be absolutely catastrophic and dire.”

I sincerely hope not. It would be heartbreaking to not be able to travel to WA.

I wonder though if we might see some charter opportunities open up from MEL/SYD to the North West of WA, if flights to Perth do become difficult. RIO and BHP might seek to reduce the risk of their work force while traveling. Could be opportunities for both VA and QF here - though it perhaps may come at a cost of reductions in RPT flying to the NW

 

[Xizor]

Does all this mean they'll only be flying the 737s on the major domestic routes?

 

[AIRwin]

Does all this mean they'll only be flying the 737s on the major domestic routes?

Looks like it...

 

[jase05]

Looks like it...

Still running A330’s currently

 

[dajop]

Regional airlines don't make money - unless they are a subsidiary of a major carrier.

Rex might disagree with you there, they've made profits for each of the last 17 years. Lean operations + some monopoly routes too small to be served by QF Link. But going forward who knows.

In the medium term they will struggle with lack of replacement aircraft, but in the short term, if they can survive and if/when things restart, the lack of shiny new aircraft, 34 seaters and lean cost structure would have them well placed. Some of their investments in pilot training schools would have to written off, given the new glut the industry will be facing.

 

[mrmerc500]

Still running A330’s currently

My weekday bookings late May & Mid June that we’re originally A330 have now been re-timed & downgraded, the A330 are only on the early morning services ex Perth 0545 & ex Syd 0715.

Love to see the VA 777 Trek over to Perth if Domestic travel picks up before international.

 

[PaulllM]

Why are my statements invalid but a journalists prefaced with "sources indicate" are?

Didn't you know journalists sources are always rigdy didge and newspapers never publish incorrect information or articles with click bait headlines...........

Word to the wise ozstamps, don't believe everything you read with unnamed sources.

Rex might disagree with you there, they've made profits for each of the last 17 years. Lean operations + some monopoly routes too small to be served by QF Link. But going forward who knows.

In the medium term they will struggle with lack of replacement aircraft, but in the short term, if they can survive and if/when things restart, the lack of shiny new aircraft, 34 seaters and lean cost structure would have them well placed. Some of their investments in pilot training schools would have to written off, given the new glut the industry will be facing.

The Rex story has been very successful before this all happened, however if things kept going the way they were at some point the Rex monopoly and the high cost of regional flights was going to require some sort of government intervention.

Overall things are not good for VA however, the loss of VA would be too much blood on the govs especially with the jobs shed. When the virus is gone the gov will want unemployment down asap and tourism to return

 

[ozstamps]

Word to the wise ozstamps, don't believe everything you read with unnamed sources.

Word to the even WISER.

Inform the market if you are mass furloughing staff if you are. By LAW the ASX requires such timely advice to fully inform the market.

Virgin have NOT. Go with a begging bowl to Canberra this week, and for all appearances you have not furloughed, and you will get tossed out the door. As appears to have occurred with Scurrah.

You may not believe the top end media, but I do believe what they tell us savvy airlines do, and report to the ASX as they are required to do -

"QANTAS to furlough 20,000 of 30,000 staff."

"Word to the wiser"- Go google that published FACT, it was not via ""unnamed sources" as you foolishly state, before making more petty comments.

 

[muppet]

Word to the even WISER.

Inform the market if you are mass furloughing staff if you are. By LAW the ASX requires such timely advice to fully inform the market.

Virgin have NOT. Go with a begging bowl to Canberra this week, and for all appearances you have not furloughed, and you will get tossed out the door. As appears to have occurred with Scurrah.

You may not believe the top end media, but I do believe what they tell us savvy airlines do, and report to the ASX as they are required to do -

"QANTAS to furlough 20,000 of 30,000 staff."

"Word to the wiser"- Go google that published FACT, it was not via ""unnamed sources" as you foolishly state, before making more petty comments.

What are you even on about?

VAH updated the market clearly outlining its plan for staff:

https://www.asx.com.au/asxpdf/20200318/pdf/44g50mqnxbwm69.pdf

Also what's with the varying font sizes and random BOLD?

 

[Melburnian1]

...Overall things are not good for VA however, the loss of VA would be too much blood on the govs especially with the jobs shed. When the virus is gone the gov will want unemployment down asap and tourism to return

Why?

It isn't 'the government's fault' that VA has had such poor financial performance.

It isn't the government's fault that we've had a new virus arrive that emanated in mainland communist China.

 

[pblackie]

What are you even on about?

VAH updated the market clearly outlining its plan for staff:

View attachment 210403

https://www.asx.com.au/asxpdf/20200318/pdf/44g50mqnxbwm69.pdf

Also what's with the varying font sizes and random BOLD?

I highlighted that upthread as well albeit in a different format. It appears facts presented to him that don't match his arguement are false