Virgin Australia Financially Secure? [Now in Voluntary Administration]

[clipped_wings]

...and whether you have to sit next to someone who has Covid 19 and doesn't know it

There are worse fates than Purgatory my friend.

 

[hydrabyss]

I guess we will find out sooner than later regarding Government assistance as they are now seeking a statement of confidence.

 

[jakeseven7]

This decision will be driven by the backroom powerbrokers. An area where Q excels. The only way to counter this, if you want to, is to start bombaring your local Federal & State MPs letting them know that you don't want to see a Q monopoly.

In a normal time, probably an effective strategy - but suspect this approach will just get lost in the wash of everything else. Local MP's have retreated and focusing very much on local local issues and support, leaving the big things like this to the ERC.

Otherwise Q has the 'lobbyists' with a track record of getting what Q wants.

As does VA. They just have less of a leg to stand on given their history, decisions, performance and owners to fall back on.

 

[hydrabyss]

Came across this article. Virgin is in negotiations with airports compared to Qantas's methods which I don't doubt for a second.

Qantas sparks airport conflict with plans to freeze rent payments

The airline has also deferred aeronautical payments for February and March, telling airports it will discuss repayment plans once the coronavirus crisis eases.

www.afr.com

 

[Must...Fly!]

Came across this article. Virgin is in negotiations with airports compared to Qantas's methods which I don't doubt for a second.

Qantas sparks airport conflict with plans to freeze rent payments

The airline has also deferred aeronautical payments for February and March, telling airports it will discuss repayment plans once the coronavirus crisis eases.

www.afr.com

They seem to be tacking towards the same outcome but in vastly different ways. Which as you point out is entirely within step of each respective airline's management methods.

 

[amaroo]

What Alan wants, Alan gets.

 

[dajop]

Came across this article. Virgin is in negotiations with airports compared to Qantas's methods which I don't doubt for a second.

Qantas sparks airport conflict with plans to freeze rent payments

The airline has also deferred aeronautical payments for February and March, telling airports it will discuss repayment plans once the coronavirus crisis eases.

www.afr.com

This no doubt reflects the relative market power of the two airlines ! A good reason to try and keep VA alive.

 

[AIRwin]

This no doubt reflects the relative market power of the two airlines !

Reminds me of the TV ad with the high school bully and the geek...

 

[bigbadbyrnes]

Came across this article. Virgin is in negotiations with airports compared to Qantas's methods which I don't doubt for a second.

Qantas sparks airport conflict with plans to freeze rent payments

The airline has also deferred aeronautical payments for February and March, telling airports it will discuss repayment plans once the coronavirus crisis eases.

www.afr.com

summary of the article for those on the cheap side of the paywall?

 

[dajop]

summary of the article for those on the cheap side of the paywall?

For me, I entered the headline into a Google search and was able to get to the full article that way.

 

[Bagpuss]

It's sometimes interesting when you look in the rear mirror instead of the windscreen for a few seconds.
As recent as August 2019.

Big mistake that led to Virgin’s nosedive

It’s the seven-year war Virgin Australia hasn’t been able to win.

www.news.com.au

WHAT VIRGIN MUST DO TO SURVIVE

Mr Hansford said the airline’s shareholders — Singapore Airlines, Etihad Airways, HNA Group, Nanshan Group and Richard Branson’s Virgin Group — were unlikely to provide any more capital. According to Reuters, Mr Scurrah has told staff the airline cannot rely on shareholder financing.

Instead of focusing on Qantas, Mr Hansford said Virgin needed to develop its own strategy because the focus of moving up-market had added too many costs relative to the revenue gains.

“To survive, one of their first moves should be to terminate all flights to the US and Hong Kong,” Mr Hansford said. The Sydney to LA route, for instance, is operated by five airlines.

 

[Must...Fly!]

Well he is dead wrong about the US, but can't fault much of the other stuff.

 

[AustraliaPoochie]

I feel that VA was too ambitious, and wanted a lot of "plushness".
I would have been happy if they were purely an Aust domestic mid budget carrier, with ecomX and the ability to buy "extra seating", but I don't run VA, and it was JB who wanted VA to fly to AUH, LAX, AKL/CHC/WLG/ZQN and HKG, where as partners would have sufficed, and VA needn't have spent so much money.
Someone I know who held VA shares, in a small amount, had the dreaded "small unmarketable buyback", VA could have capital raised from Aust domestic share holders, and kept small shareholdings, but they decided to do a buyback a while back.
Well, at least we (VFF & I )have had a "good 15 years relationship", and if they to go into administration/bankruptcy, pity/sad as it is, so be it.

 

[jb747]

I’m somewhat bemused by the commentary about wanting to avoid a QF monopoly when this is eventually over. I don’t think you will have that luxury at all. When this is all over I doubt that Australia will have ANY airlines.

 

[tomlee1986]

I’m somewhat amused by the commentary about wanting to avoid a QF monopoly when this is eventually over. I don’t think you will have that luxury at all. When this is all over I doubt that Australia will have ANY airlines.

I think Qantas will survive in someway - as there is still a need to have domestic travel - especially east and west coast of Australia.. I do hope Virgin will survive too but I think even if they survive, both airlines would be so different to what we know today. As to what form, I do not have a crystal ball to gaze...

 

[eastwest101]

I think Qantas will survive in someway - as there is still a need to have domestic travel - especially east and west coast of Australia.. I do hope Virgin will survive too but I think even if they survive, both airlines would be so different to what we know today. As to what form, I do not have a crystal ball to gaze...

Yep - you won't see federal and state politicians schlepping away in busses, trains or cars to get to/from places, so I would expect some sort of airline service to resume in a country the size of Australia, at some point.

 

[serfty]

Yep - you won't see federal and state politicians schlepping away in busses, trains or cars to get to/from places, so I would expect some sort of airline service to resume in a country the size of Australia, at some point.

Isn't that what the RAAF is for? If they needed more equipment in such an event, I'm sure there'd be some readily available 2nd hand bodies around, some hardly used (in Aviation terms).

 

[lovetravellingoz]

I’m somewhat bemused by the commentary about wanting to avoid a QF monopoly when this is eventually over. I don’t think you will have that luxury at all. When this is all over I doubt that Australia will have ANY airlines.

I may be wrong, but based on our current reducing and now small daily case rate I could see that say from June on that some measure of interstate travel will be increasingly allowed.

International flights though are most likely going to be minimal for a long long time yet apart from airfreight.

 

[Must...Fly!]

Which means that if true, in a quirky way, Qantas are far far more exposed to the effects of COVID-19 than VA

 

[HS-TQE]

I feel that VA was too ambitious, and wanted a lot of "plushness".
I would have been happy if they were purely an Aust domestic mid budget carrier, with ecomX and the ability to buy "extra seating", but I don't run VA, and it was JB who wanted VA to fly to AUH, LAX, AKL/CHC/WLG/ZQN and HKG, where as partners would have sufficed, and VA needn't have spent so much money.

Virgin was already flying to LAX and NZ (AKL/CHC/WLG) well before Borghetti took over as CEO and started the ill-fated rebranding.

LAX was a Godfrey decision under the old 'V Australia' banner as a division of Virgin Blue Holdings, with Delta and V America taken on as both USA partners (before V America was bought out by Alaska).

Back then Virgin Blue was largely making money, left, right and centre for much of BG's reign as CEO.