Virgin Australia Financially Secure? [Now in Voluntary Administration]

[SheikYerbouti]

Unless you get outta Dodge now and transfer your points to SQ. Sure, you'll lose a few in the transfer but better than nothing IMO.

Yeah I used up all my points to book a dream trip to Iceland on SQ in Sept... only 50% confident it'll happen though

But all that Status etc, gorne.

Post automatically merged: Mar 30, 2020

I don't know a lot about Ansett but have read a few articles and wonder why you feel there are similarities between the two.

Because for most people, they had status, FF points, etc, and then within a couple of weeks (it seemed), the airline was gone and all that hard-earned status etc vanished and you were left with flying Qantas up the back of economy. That's what I fear is about to happen to us.

But on the other hand, for loads of people, their employers/jobs won't be around in 3 months' time anyway so it's not like they'll be worried about business travel.

 

[davidj]

Yeah I used up all my points to book a dream trip to Iceland on SQ in Sept... only 50% confident it'll happen though

Was that ticketed by VA? Be cautious, as the operating airline may not honour the ticket when VA is no longer around.

 

[SheikYerbouti]

Was that ticketed by VA? Be cautious, as the operating airline may not honour the ticket when VA is no longer around.

No, transferred all points to KF and redeemed through them, and have an SQ-issued ticket. The flights weren't available through VFF redemption.

 

[hydrabyss]

Yeah I used up all my points to book a dream trip to Iceland on SQ in Sept... only 50% confident it'll happen though

But all that Status etc, gorne.

Post automatically merged: Mar 30, 2020

Because for most people, they had status, FF points, etc, and then within a couple of weeks (it seemed), the airline was gone and all that hard-earned status etc vanished and you were left with flying Qantas up the back of economy. That's what I fear is about to happen to us.

But on the other hand, for loads of people, their employers/jobs won't be around in 3 months' time anyway so it's not like they'll be worried about business travel.

From what I read about Ansett it was just a matter of time before they where finished. Their running cost base was so high compared to others no wonder Virgin came along as there was money to be made. It would not have made sense to help them out as fundamentally there was too much wrong with it.

I feel Virgin is in a different position than Ansett with much too offer the broader tourism industry the only issue I see is what will tourism be in six months time. Until a cure is made I doubt the border restrictions will be lifted and domestic is anyone's guess.

I see airlines as being important infrastructure and having two keeps the consumer cost down which encourages further spending in other areas. Having Qantas on its own would just benefit executives and share holders.

 

[p--and--t]

From what I read about Ansett it was just a matter of time before they where finished. Their running cost base was so high compared to others no wonder Virgin came along as there was money to be made. It would not have made sense to help them out as fundamentally there was too much wrong with it.

I feel Virgin is in a different position than Ansett with much too offer the broader tourism industry the only issue I see is what will tourism be in six months time. Until a cure is made I doubt the border restrictions will be lifted and domestic is anyone's guess.

I see airlines as being important infrastructure and having two keeps the consumer cost down which encourages further spending in other areas. Having Qantas on its own would just benefit executives and share holders.

If things really turn to economically & the guvment has a choice between having one of the very few remaining operational airlines in the world to restart things up or following a PC anti-competitive line of trying to stimulate a competitive environment from empty federal coffers, pretty sure I know what they will be doing.

 

[Must...Fly!]

Well I am sure VA and QF will qualify for today's announcement by the federal government for wage assistance. This will assist as VA will not be under obligation to pay out leave or (as I understand it) pay at the normal rate of wages, unless staff choose to do so. This will preserve cash.

 

[jase05]

Very interesting article in the Australian on VA seeking a $1.4bn loan package to ensure survival and that the plan would see the government take an ownership stake in the company if the loan was unable to be paid within 2-3 years

 

[Must...Fly!]

Very interesting article in the Australian on VA seeking a $1.4bn loan package to ensure survival and that the plan would see the government take an ownership stake in the company if the loan was unable to be paid within 2-3 years

Is this in tomorrow's Aus?

 

[jase05]

Is this in tomorrow's Aus?

Just saw it, behind paywall.
I’m a subscriber but still won’t let me copy a link

 

[Ansett]

Or try this

Virgin Australia seeks a $1.4BILLION loan to save the airline from collapse as the coronavirus pandemic drives carrier further closer to the brink

Its not the first time airlines have lobbied government for support, Qantas did this a few years back after facing collapse after major losses.

 

[Must...Fly!]

Thanks.

VA stocks are in a trading halt this morning. It's not immediately clear who implemented/requested it.

 

[knagelli]

It's not immediately clear who implemented/requested it.

They are running out of money and unless Govt intervenes VA is going to be wiped off from ASX as it cannot survive this for long.

 

[Must...Fly!]

They are running out of money and unless Govt intervenes VA is going to be wiped off from ASX as it cannot survive this for long.

That is not the reason for the pause in trading, the news articles themselves state VA have at least 6 months cash on hand.

 

[Coops1]

Transferred 200k to SQ last week to cover more bases......transfer button has disappeared now.

 

[AIRwin]

Transferred 200k to SQ last week to cover more bases......transfer button has disappeared now.

I just logged in and it's still there... How many points do you have left?

 

[JJS]

Was able to transfer points 15 minutes ago and points are appearing in KF account. And just checking now - transfer page remains active.

 

[knagelli]

That is not the reason for the pause in trading, the news articles themselves state VA have at least 6 months cash on hand.

That is true but without revenue being generated , the operating costs ( maintaining the aircrafts) over weigh the cash on hand. Also with all the cancellations/reschedules and majority of flight operations halted , it is not far for them to be struggling for revenue/financial resources.

 

[ramboflyer]

Transferred 200k to SQ last week to cover more bases......transfer button has disappeared now.

Interesting. I transferred all mine to SQ last night which I was 95% sure of doing with or without CV. Just checked and transfer link is still there.

 

[hydrabyss]

That is not the reason for the pause in trading, the news articles themselves state VA have at least 6 months cash on hand.

I found this

Virgin Australia shares have been placed in a trading halt pending an announcement from Air New Zealand regarding its shareholding on Tuesday.

 

[AisleSeat]

I've decided to stick with Velocity for the time being, but have created and linked a Krisflyer account just in case.