Virgin Australia Financially Secure? [Now in Voluntary Administration]

[Cubiscus]

I would have confidence in PS leading a turnaround given the sensible activities of the last 12 months.

I agree with most that say VA is the best option long term to put the company in the best position. I hope they steer well clear of Velocity and Travel Bank balances though, that would be massive reputational damage.

 

[cove]

This will be fairly messy as there were about 10,000 employees and pretty large debts.
i just hope Singapore Airlines are part of the reset of this business. We do need 2 major airlines rather than one.

 

[RAM]

Aaah, the irony. Posting on that Australian icon, Facebook, probably using their Australian made and owned Apple and Samsung phones to call for government to ban further foreign ownership of VA ....

Well all those stood-down Qantas workers have got to do something with their time in the hope that they can see off their domestic competitor so AJ can then unleash some new "enhancements"!

 

[Cubiscus]

I also hope if and when Qantas needs help in the future that its met with the same federal response. Fair is fair.

 

[jakeseven7]

I also hope if and when Qantas needs help in the future that its met with the same federal response. Fair is fair.

Doubt it, its got almost national security importance in terms of its importance to the economy. It will survive.

Anyway, it appears domestic travel might not be far off restarting so hopefully will help both the 'new' VA and QF group.

Post automatically merged: Apr 20, 2020

I would have confidence in PS leading a turnaround given the sensible activities of the last 12 months.

I agree with most that say VA is the best option long term to put the company in the best position. I hope they steer well clear of Velocity and Travel Bank balances though, that would be massive reputational damage.

I agree, I suspect in the grand scheme of things, surely travel banks would be a minuscule creditor?

Velocity I"m not so sure, its complex.

 

[Hvr]

I also hope if and when Qantas needs help in the future that its met with the same federal response. Fair is fair.

Why would an predominately Australian owned company be treated the same as a failing foreign owned company? Surely the overseas owners of Virgin should stump up some cash?

 

[kpc]

just announced that Va has gone into voluntaryy administration with 5 billion in debt

 

[Plutonus]

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.

Three flights operated today, ex SYD.

They also cancelled most of their flights on Saturday and Sunday too. They're probably trying to be the most efficient possible - rather than send planes with zero passengers.

 

[antycbr]

Why would an predominately Australian owned company be treated the same as a failing foreign owned company? Surely the overseas owners of Virgin should stump up some cash?

Oh FFS - this has been done over and over again. Can we please move on as VA's shareholders are about to be vaporised. Think of the 10,000 staff who pay tax in this country and the 6,000 indirect who are contracted to provide services.

I feel like I'm in The Australian comments section.

 

[ag4647]

I’m more than happy to lose my velocity points so that employees get their entitlements. The stuff people are talking about in this thread is trivial compared to the suffering the employees are about to endure.

 

[kpc]

just announced that Va has gone into voluntary administration with 5 billion in debt

 

[Hvr]

Oh FFS - this has been done over and over again. Can we please move on as VA's shareholders are about to be vaporised.

You pays your money and you takes your chances. If you 'invest' in the share market you may well lose. Some people seem to think it's all one way.

 

[antycbr]

You pays your money and you takes your chances. If you 'invest' in the share market you may well lose. Some people seem to think it's all one way.

With VA going into Administration the equity holders will lose all of their investment, as you suggest.

Can we look at what can be done to assist the 16,000 Australian citizens now?

The fact that VA was foreign owned is now moot.

 

[travel_bug]

I’m more than happy to lose my velocity points so that employees get their entitlements. The stuff people are talking about in this thread is trivial compared to the suffering the employees are about to endure.

I don’t think that’s fair to say; I don’t think anyone has said “screw the employees, give me my points”.

Whilst there is never a guarantee on the value of velocity points, people can still be upset about losing them. People can also be upset about losing money in their travel banks if that occurs. You can be upset about different things at the same time, I don’t think anyone’s exactly joyful at the prospect of Australians losing employment during a pandemic.

 

[cove]

Another one bites the dust music needed.

 

[Hvr]

so that employees get their entitlements. The stuff people are talking about in this thread is trivial compared to the suffering the employees are about to endure.

Totally agree, I know at least Virgin two employees post here. Thinking of them at this hard time.

 

[glasszon]

Source? I see media articles talking about potentially calling in administrators, but thought it isn't final yet.

 

[george27]

I saw it on channel 10 news just now, but here is a source We’re for Sydney | Daily Telegraph (ignore the url contents, the actual article talks about administration)

 

[Pushka]

just announced that Va has gone into voluntary administration with 5 billion in debt

We really need the second airline. This will allow Qantas rampant fare increase.

 

[antycbr]

I don’t think that’s fair to say; I don’t think anyone has said “screw the employees, give me my points”.

Whilst there is never a guarantee on the value of velocity points, people can still be upset about losing them. People can also be upset about losing money in their travel banks if that occurs. You can be upset about different things at the same time, I don’t think anyone’s exactly joyful at the prospect of Australians losing employment during a pandemic.

At least employee benefits are guaranteed through FEGS. The Feds are on the hook for $850 million at this point.