Virgin Australia Financially Secure? [Now in Voluntary Administration]

[bernardblack]

SQ and DL, in terms of existing partners, would be great, but both have their own cashflow problems right now.

How's NH doing?

 

[Comoman]

AFR reporting heading for Voluntary Administration tonight with Deloitte lined up to be Administrators

Virgin Australia headed for VA after government knockback

Virgin Australia's board is set to throw in the towel after repeated efforts to secure a financial lifeline from the Commonwealth government.

www.afr.com

 

[travel_bug]

Imagine if someone like, oh I don't know, Swire Group, came swinging in

But don't they own Cathay who is OW?

I do wonder what would happen if VA was acquired by an org with a stake in a particular alliance, if it was Star or Sky Team I can't see it mattering since Qantas is OW, but I'm curious whether a double up of the same alliance on domestic routes in an environment that is effectively a duopoly could run afoul of Australia's competition laws. Otherwise, would it be possible for an organisation to own two different entities in different corporate alliances, or could that raise issues considering the amount of commercial-in-confidence information I imagine would be shared between such partners.

 

[wannabeinvestmentbanker]

AFR reporting heading for Voluntary Administration tonight with Deloitte lined up to be Administrators

Virgin Australia headed for VA after government knockback

Virgin Australia's board is set to throw in the towel after repeated efforts to secure a financial lifeline from the Commonwealth government.

www.afr.com

Beat me to it! Clearly this ownership model really doesn't work

 

[antycbr]

Beat me to it! Clearly this ownership model really doesn't work

I don't think VA is a death sentence for VA at this point, its a necessary step to clear the decks.

 

[Must...Fly!]

I don't think VA is a death sentence for VA at this point, its a necessary step to clear the decks.

Hopefully of the large equity investors and not of jobs, FF points or travel banks.

 

[woodborer]

I don't think VA is a death sentence for VA at this point, its a necessary step to clear the decks.

Certainly may have decided that VA was a better option than a creditor scheme.

 

[dajop]

Big problem.. Swire group already has Cathay Pacific - already in One world Alliance with Qantas

Not to say that I think Swire group would have been a candidate, they are just as likely as IAG. But the aviation world will be a new world out there. Alliances are temporary commercial arrangements, not set in stone permanent deals. Even before COVID-19 you saw commercial arrangements, some even involving equity across alliance boundaries.

 

[jakeseven7]

AFR reporting heading for Voluntary Administration tonight with Deloitte lined up to be Administrators

Virgin Australia headed for VA after government knockback

Virgin Australia's board is set to throw in the towel after repeated efforts to secure a financial lifeline from the Commonwealth government.

www.afr.com

It is the best outcome I think for the long term, if it eventuates.

I do feel sorry for the staff at VA who will be severely impacted, it will not be a pleasant experience.
I hope those who held onto their points see them on the other side as well

And I do still feel a deal of rage towards JB who can pretty much solely be blamed for the state of VA that led to where they are today!

 

[Bagpuss]

Administrator reports coming in thick and fast.

Virgin Australia set for voluntary administration

The Morrison government's refusal of further financial support for Virgin has sealed the carrier's fate, with the airline preparing to go into voluntary administration.

www.theage.com.au

They can post onto ASX up until 7PM Sydney time I think.

 

[travel_bug]

Hopefully of the large equity investors and not of jobs, FF points or travel banks.

Agree, I think a lot of the public support for VA was because of their status as a large employer of Australians, and the thought that even if people had travel banks forced upon them, that if VA survived then that money wasn't "lost".

Though it may be the easiest thing to get rid of, I think clearing out travel banks will add some insult to injury for a lot of people. I'd consider myself as one of the lucky ones losing $900 when there would be many people with thousands on the line from family holidays (not to mention how many of those people have also lost their jobs/been put on reduced hours due to the pandemic).

 

[jakeseven7]

Agree, I think a lot of the public support for VA was because of their status as a large employer of Australians, and the thought that even if people had travel banks forced upon them, that if VA survived then that money wasn't "lost".

Though it may be the easiest thing to get rid of, I think clearing out travel banks will add some insult to injury for a lot of people. I'd consider myself as one of the lucky ones losing $900 when there would be many people with thousands on the line from family holidays (not to mention how many of those people have also lost their jobs/been put on reduced hours due to the pandemic).

My bet is that people will probably lose travel banks. There are members on AFF who have thousands in their banks...

I think (And hope) VA points will come through in some way, shape or form. Maybe reduced or something perhaps?

 

[Bagpuss]

As it's highly likely administration is going to occur, it is worth noring that administration is different for each and every company and comparisons can't be drawn from previous companies.
As per my previous post this morning I expect there are firm plans on how to exit in the form of a DOCA.

 

[antycbr]

And I do still feel a deal of rage towards JB who can pretty much solely be blamed for the state of VA that led to where they are today!

A lot of anger can and will be directed towards JB.

We (as pax) have been beneficiaries of some of the things that lost a shedload of money though - world's best domestic business class in the A330 being one example, a decent network of lounges (overbuilt in some ports), sitting in the EY first lounge...

However whoever did the fleet and route planning should have been booted a long time ago (moderated language from initial thoughts!)

 

[Melburnian1]

I had remarked earlier in the day that six of seven scheduled VA flights ex SYD today did not appear to have (or would be) operat(ing)ed.

Now we all know why.

There'll have to be a detailed notice prepared for the ASX given that about 8.5 per cent is owned by other than the major shareholders such as SQ, EY, Nanshan, HNA Group and Branson.

Sad to see its demise, especially the widebodies. but it may not totally be a closed chapter.

 

[Bagpuss]

I had remarked earlier in the day that six of seven scheduled VA flights ex SYD today did not appear to have (or would be) operat(ing)ed.

Bit strange because the current operating flights are government guaranteed.

 

[jakeseven7]

A lot of anger can and will be directed towards JB.

We (as pax) have been beneficiaries of some of the things that lost a shedload of money though - world's best domestic business class in the A330 being one example, a decent network of lounges (overbuilt in some ports), sitting in the EY first lounge...

However whoever did the fleet and route planning should have been summarily executed.

We can only hope that in the purge, PS is able to hang around and dictate what talent he can keep (he seems to have a brain) and hopefully some of JB's devotees are shown the emergency exit door with no hand luggage allowed! (I can't bring myself to say executed like you did!)

If it is PE funded they normally inject their own teams in as well, razor gangs will be all over the place.

Post automatically merged: Apr 20, 2020

Sad to see its demise, especially the widebodies. but it may not totally be a closed chapter.

I agree - it is mixed feelings right - the widebodies were lovely. But ultimately they played a big role in sinking VA.

Yes we all benefited in the short term from JB's self indulgent ego trip but now we pay the real price.

 

[Alpha7]

Is Virgin Australia going down under?
Will they get the required financial ai?

 

[jakeseven7]

Already being discussed in another thread

Virgin Australia Financially Secure? [Now in Voluntary Administration]

A legitimate question. I’m not scaremongering! In light of Covid19, the impact on travel numbers and Virgins overseas ownership, how are we feeling about having stores of Velocity Points?

www.australianfrequentflyer.com.au

 

[Melburnian1]

Bit strange because the current operating flights are government guaranteed.

Exactly what I said in the delays/cancellations thread. I used the word 'mystified', and despite the latest news, I still am.

Maybe in a few cases it was to avoid stranding flight and cabin crew in locations away from home.