Virgin Australia Financially Secure? [Now in Voluntary Administration]

[Jack_OC]

Public are really starting to get pissy with Richard Branson, especially the British.

https://twitter.com/x/status/1250038956797943810

I think this is the first time I've ever seen anyone suggest that Katie Hopkins' views are representative of the British public!

 

[pauly7]

Just burnt some brain cells on Fakebook, reading hundreds and hundreds of comments on ABC’s morning piece on VA’s future.

Somewhat surprisingly to me - most are actually opposed to any targeted relief.

I’m sure the governments will be taking public sentiment into consideration too, and so far this seems to reflect their position.

 

[Rembrandt]

The Australian comments is in a complete torment as they don’t want to support Alan Joyce as he’s too progressive for them but they don’t want to support Virgin because of their ideology.

What a pack of morons. If it wasn't for Covid-19 then VA wouldn't be asking for a $1.4 billion low interest loan from the government.

I can guarantee these muppets would be the fist to complain when airfares go up and routes axed etc if Qantas becomes a monopoly.

As for people persuming VA is completely owned by Richard Branson. Well that is no surprise as his brand is on the plane.

 

[Melburnian1]

..But yes VA are saying they need 10% of that amount to survive, but for how long...

You are hardly an 'uninterested observer' as you may/do work for its competitor, but the point you make is 100 per cent valid.

Any government-funded bailout of VA would see $$ going down the drain, because it doesn't seem to be capable, all things considered (even with cuts) of generating a profit and/or 'sufficient' (subjective) return on capital.

A further argument against using taxpayer money in this way is that there's a stack of companies, not just in aviation, that would want similar assistance. Aussie Disposals, for instance yesterday had to shut 11 of its 36 stores when it entered administration. Its customers might want those 11 to still be trading. The longer the virus situation continues, the more companies will fail. No government can afford to prop up every business failure in the rare situation we're facing.

The virus has accelerated VA"s problems, but to my mind it was going to have its day of reckoning at some stage in the next couple of years even without the pandemic.

 

[desafinado74]

Just burnt some brain cells on Fakebook, reading hundreds and hundreds of comments on ABC’s morning piece on VA’s future.

Somewhat surprisingly to me - most are actually opposed to any targeted relief.

I’m sure the governments will be taking public sentiment into consideration too, and so far this seems to reflect their position.

Unfortunately there are many ignorant morons in society who make their opinions from headlines and without knowing the full facts.

 

[Rembrandt]

Just burnt some brain cells on Fakebook, reading hundreds and hundreds of comments on ABC’s morning piece on VA’s future.

Somewhat surprisingly to me - most are actually opposed to any targeted relief.

I’m sure the governments will be taking public sentiment into consideration too, and so far this seems to reflect their position.

*Bangs head against table* - and this is the same stupid Aussie public that loves to travel? Maybe the entire domestic airline industry should collapse to give them a reality check then. Wait for them to start saying 'Why didn't the government do anything to support the industry'? Muppets.

 

[hydrabyss]

Just burnt some brain cells on Fakebook, reading hundreds and hundreds of comments on ABC’s morning piece on VA’s future.

Somewhat surprisingly to me - most are actually opposed to any targeted relief.

I’m sure the governments will be taking public sentiment into consideration too, and so far this seems to reflect their position.

I wonder how many of those are currently getting Government support themselves.

 

[hydrabyss]

*Bangs head against table* - and this is the same stupid Aussie public that loves to travel? Maybe the entire domestic airline industry should collapse to give them a reality check then. Wait for them to start saying 'Why didn't the government do anything to support the industry'?. Muppets.

Travel overseas most likely or on Cruise ships that don't pay any tax in Australia.

 

[Dee#]

Virgin Australia announces trading halt. For those who missed the boat to transfer points to Krisflyer…..should you spend remaining points now in the online store or wait for a bailout miracle ?

I applied for wine over 10 days ago then more on Easter Friday. Order acknowledged then advised will be delayed due to lots of orders! Maybe? Or are they just holding off.

 

[Rembrandt]

I wonder how many of those are currently getting Government support themselves.

That's what I was thinking. Some are suggesting VA shouldn't be bailed out because they financially mismanaged themselves (cough don't forget Covid-19). However, how many of these people are or will be receiving money from the government to support them over the next half year or more? Maybe they should have also had the foresight to place a large sum of money away for a long rainy day too. These people are also placing a burden on treasury.

Lets not forget the tens of thousands of people joining the dole queue if VA and others collapse.

 

[ols]

I applied for wine over 10 days ago then more on Easter Friday. Order acknowledged then advised will be delayed due to lots of orders! Maybe? Or are they just holding off.

Mine was ordered 3/4.
Been given delivery date between 12/4 and today.
Checking order history is just in order processing stage.
Next stage is order ready then order dispatched.
Going to be at least another week I reckon.

 

[QFflyermelbourne]

That's what I was thinking. Some are suggesting VA shouldn't be bailed out because they financially mismanaged themselves (cough don't forget Covid-19). However, how many of these people are or will be receiving money from the government to support them over the next half year or more? Maybe they should have also had the foresight to place a large sum of money away for a long rainy day too. These people are also placing a burden on treasury.

Lets not forget the tens of thousands of people joining the dole queue if VA and others collapse.

Your argument is preposterous as Virgin are getting all the same government aid (including the government paying jobkeeper to their 10k + employees) as every other business plus additional help in the form of the already released aviation sector package.

The reality is Virgin went into this having been appallingly managed for years. It would be insane for the federal government to pour billions into a company that is worth almost nothing. Would cost them far less to just pay the salaries of Virgin staff to do nothing.

I passionately believe in a two airline system and shudder at the thought of a QF monopoly for what it would do to both service and prices but I'm fast coming around to the idea that Virgin should be allowed to fail and then we fastrack Alliance or Cobham or whoever to upgrade their AOC, get them taking the leases on Virgin aircraft and support them with a clean balance sheet to grow and become the number 2. Some government support for them in return for them agreeing to hire as many displaced VA staff as possible. In everyone's interests.

 

[jb747]

Jetstar will be sold off. Neither QF nor Virgin will be around at the end.

 

[TheInsider]

Jetstar will be sold off. Neither QF nor Virgin will not be around at the end.

That's a big call!

 

[TheInsider]

$VAH have just gone into another voluntary halt for the next 7 days or shorter pending the release of further information.

 

[TheInsider]

SYDNEY, April 16 (Reuters) - Cash-strapped Virgin Australia Holdings Ltd (VAH) on Thursday suspended trading in its shares to continue talks on financial aid and restructuring alternatives to help it weather the coronavirus crisis.

The airline had halted trading on Tuesday but said in an update on Thursday that discussions remained confidential and incomplete and requested a suspension of trading for up to seven days.

Virgin has asked the Australian government for A$1.4 billion ($883.54 million) in loans with no success so far.

It is also in talks with creditors about debt restructuring options such as a debt-for-equity swap and has hired UBS, Morgan Stanley, Houlihan Lokey and Deloitte as advisers, according to a person with knowledge of the matter who was not authorised to speak publicly. ($1 = 1.5845 Australian dollars

)

Advisers would be loving this and all the easy money they would be getting!!!!

 

[Jack_OC]

$VAH have just gone into another voluntary halt for the next 7 days or shorter pending the release of further information.

It's now a voluntary suspension, which is different from a trading halt. A trading halt can only last 2 trading days. I previously posted that trading halts are quite common on the ASX, but voluntary suspensions are less so. Suspensions have some longer term implications, if they last for 5 days or more (as this one will). For example, their ability to issue new shares without a prospectus will be restricted for 12 months. Probably the least of their worries now, but companies generally don't go into a voluntary suspension lightly. In any case, it seems like they had no real choice - per ASX rules they had to either make an announcement this morning and resume trading, or request a suspension, and clearly there is no outcome to their discussions that they can announce yet.

 

[hydrabyss]

Your argument is preposterous as Virgin are getting all the same government aid (including the government paying jobkeeper to their 10k + employees) as every other business plus additional help in the form of the already released aviation sector package.

The reality is Virgin went into this having been appallingly managed for years. It would be insane for the federal government to pour billions into a company that is worth almost nothing. Would cost them far less to just pay the salaries of Virgin staff to do nothing.

I passionately believe in a two airline system and shudder at the thought of a QF monopoly for what it would do to both service and prices but I'm fast coming around to the idea that Virgin should be allowed to fail and then we fastrack Alliance or Cobham or whoever to upgrade their AOC, get them taking the leases on Virgin aircraft and support them with a clean balance sheet to grow and become the number 2. Some government support for them in return for them agreeing to hire as many displaced VA staff as possible. In everyone's interests.

Didn't Qantas not pay any taxes from 2009-2018.

 

[andrewpf]

Just burnt some brain cells on Fakebook, reading hundreds and hundreds of comments on ABC’s morning piece on VA’s future.

Somewhat surprisingly to me - most are actually opposed to any targeted relief.

I’m sure the governments will be taking public sentiment into consideration too, and so far this seems to reflect their position.

Wasn't it reported that Qantas had encouraged their staff to be out there opposing support to Virgin, or did I imagine that?

 

[serfty]

Bit offtopic...
800,000 people have applied for the Jobkeeper payment, at $3000 per person per month, 6 months equals $18,000.
$18,000 x 800,000 is already $14.4m, isn't it?
Or is my maths inadequate and its only reaching $1.44m?
I wasn't too good at maths.
And VA says they need $1.4b, ...
I can only see the govt bringing in a levy to repay all these, either via us flyers, or a levy paid by all who are currently still employed.

That's a total of $14,400,000,000.00 or $14.4b - based on 800,000 at $18k.

But yes VA are saying they need 10% of that amount to survive, but for how long...

This is actually $19,500 - 6th Months is 26 weeks or 13 fortnights so, 26*$750 or 13*$1500.

So, $15.6B, but that is companies - not employees of them, so much more.

Nah they don't know the exact numbers but 800,000 business is a coughload! I think companies have to be signed up to STP to be able to qualify.

Generally STP, but there are still some not using it who will need to apply by other means.