Virgin Australia Financially Secure? [Now in Voluntary Administration]

[Mr Pumblechook]

Has anyone actually NOT transferred some/all their points?

I left my ~200,000 points in VFF. I couldn't see the point in having KF miles, which expire, will almost certainly soon be heavily devalued, and which are for a product (international travel) that might not even be available for another 12-18 months. If VA survives, I'll probably be using my ruthlessly devalued VFF points for a few dollars off a domestic Y ticket, but it will be to visit family and friends in Australia, which is by far the best outcome for me.

 

[bulldog88]

Haven't done my points, if they go so be it. To me a far higher priority is keeping VA afloat and avoiding a monopoly at all costs.

It would take the best part of a decade, whilst the airline industry is recovering, for a competitor to get back to the same point.

We need to get to a point where an airline ticket isn't a lottery ticket for Covid-19 infection..

Unfortunately I don't think there is a place for VA (or another 2nd carrier) until then.

Even if there is a "Covid test" outside the airport, I can't see people flying en masse again for years unless the economy miraculously recovers. Maybe a genuine LCC might change this. But people are worried about both their health and money now.

 

[Must...Fly!]

Both Virgin and Qantas have been given some business by the federal government to provide freight & repatriation links between AU and HKG, LAX, LHR and AKL.

Cash coming in is a good thing.

Australians trying to return home will be asked to make their way to travel hubs in Hong Kong, Los Angeles, London and Auckland under a repatriation plan the government is developing.

The four hubs were decided on after talks with Qantas and Virgin, and were chosen because they provide the easiest access points for the greatest number of stranded Australians.

The government is still in discussions with airlines about mercy flights to less accessible locations, such as in South America and the Pacific.

Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said these locations were chosen based on providing accessibility to the largest number of overseas Australians possible.

"This is about getting Australians back home as soon as possible," Mr McCormack said.

"These flights will also provide much-needed freight capacity to Australian exporters and importers to these destinations.

"This assistance builds on the more than $1 billion of support we have already committed to the sector, showing the Government's determination to sustain Australia's aviation industry."

Minister for Foreign Affairs Marise Payne said the message to Australians overseas is clear: they should not hesitate if they have an opportunity to take commercial flights home.

"Many Australians will be able to get to one of these four destinations. They can do so knowing there will be an Australian airline to get them home," Ms Payne said.

"We recognise that, in some cases, this will not be possible. We will continue to work closely with airlines and our overseas consular assistance network in these situations.

A Virgin spokesperson told the ABC: “As a major Australian carrier we are pleased to support the Government in getting Australians home and maintaining important freight links into the country."

From the ABC live feed

Qantas, Virgin resume some major international routes to help repatriate Australians

Australians trying to get back into the country will have to get to London, Los Angeles, Hong Kong or Auckland to do so, as the Federal Government establishes a network to bring people home.

www.abc.net.au

 

[amaroo]

Both Virgin and Qantas have been given some business by the federal government to provide freight & repatriation links between AU and HKG, LAX, LHR and AKL.

Cash coming in is a good thing.



From the ABC live feed

Qantas, Virgin resume some major international routes to help repatriate Australians

Australians trying to get back into the country will have to get to London, Los Angeles, Hong Kong or Auckland to do so, as the Federal Government establishes a network to bring people home.

www.abc.net.au

It's like getting the mower man to cut the lawn every 2 weeks, rather than every 4 weeks in the winter months. It's going to do bugger all.

 

[Must...Fly!]

It's like getting the mower man to cut the lawn every 2 weeks, rather than every 4 weeks in the winter months. It's going to do bugger all.

Not saying it's going to save anything or anyone.

But it's still nice to see.

 

[ozstamps]

I left my ~200,000 points in VFF. I couldn't see the point in having KF miles, which expire, will almost certainly soon be heavily devalued, and which are for a product (international travel) that might not even be available for another 12-18 months.

SQ miles expire in THREE YEARS – 36 months. You can’t take one award trip in 3 years????

The current award charts and current rates are there to see – and book flights now for later year using CURRENT levels.

SQ are part of a genuine global network, and their award miles can be used on all Star Alliance partners – many partners in conjunction on one long haul flight if you wish, and get creative as I always am. The world is truly your oyster using them.

Many Virgin only flyers think exotic flight awards run to Darwin, Hobart, Hong Kong/Haneda (gasp!) or Christchurch etc, and that is near the full gamut!

I’ve used Star Alliance Miles in recent times for award flights in the pointy end to visit Lhasa Tibet, Windhoek Namibia, Whitehorse in the Yukon, Madagascar, The Faroe Islands, Tirana Albania, Luang Prabang Laos, Cape Town, St. John’s Newfoundland, The Andaman and Nicobar Islands, Montevideo Uruguay, Tripoli in Libya, Cyprus, Puerto Rico, Kunming China, Baku Azerbaijan, Fairbanks Alaska, Boa Vista Brazil, Cuzco Peru, Jamaica, Addis Ababa Ethiopia etc, and scores of other very expensive places to access, if via paid tickets. All paid with miles.

Star Alliance awards have gigantic flexibility, if used wisely.

 

[amaroo]

SQ miles expire in THREE YEARS – 36 months. You can’t take one award trip in 3 years????

The current award charts and current rates are there to see – and book flights now for later year using CURRENT levels.

SQ are part of a genuine global network, and their award miles can be used on all Star Alliance partners – many partners in conjunction on one long haul flight if you wish, and get creative as I always am. The world is truly your oyster using them.

Many Virgin only flyers think exotic flight awards run to Darwin, Hobart, Hong Kong/Haneda (gasp!) or Christchurch etc, and that is near the full gamut!

I’ve used Star Alliance Miles in recent times for award flights in the pointy end to visit Lhasa Tibet, Windhoek Namibia, Whitehorse in the Yukon, Madagascar, The Faroe Islands, Tirana Albania, Luang Prabang Laos, Cape Town, St. John’s Newfoundland, The Andaman and Nicobar Islands, Montevideo Uruguay, Tripoli in Libya, Cyprus, Puerto Rico, Kunming China, Baku Azerbaijan, Fairbanks Alaska, Boa Vista Brazil, Cuzco Peru, Jamaica, Addis Ababa Ethiopia etc, and scores of other very expensive places to access, if via paid tickets. All paid with miles.

Star Alliance awards have gigantic flexibility, if used wisely.

Q - do you think international travel will be back to normal within 24 months?

My view - travel is going to revert to the very few, and to very limited destinations.

 

[Must...Fly!]

Q - do you think international travel will be back to normal within 24 months?

My view - travel is going to revert to the very few, and to very limited destinations.

Sadly I agree. The longer this goes on the lower the number of airlines will survive which will definitely change how and why we travel.

I hope I'm wrong but the possibility of a long weekend trip to San Francisco is going to be a thing of the past.

 

[ozstamps]

I hope I'm wrong but the possibility of a long weekend trip to San Francisco is going to be a thing of the past.

You can use points to fly SYD-SFO direct today Saturday at 11.30am on United for the weekend if you really wish. Oops you did not transfer your VA points to SQ - I forgot!

Airlines will bounce back fast on near all main routes - they always have. There may be a few less and few broker than in January but it will all largely get back to normal.

Booking some pointy end long haul now on SQ for latter year.

 

[jase05]

You can use points to fly SYD-SFO direct today Saturday at 11.30am on United for the weekend if you really wish. Oops you did not transfer your VA points to SQ - I forgot!

Airlines will bounce back fast on near all main routes - they always have. There may be a few less and few broker than in January but it will all largely get back to normal.

Booking some pointy end long haul now on SQ for latter year.

I hope you are right but I just don’t see things rebounded as quickly as people think. Maybe some key routes will bounce back quickly who knows. As for going to SFO today, no thanks. The US would be close to the last place on Earth I’d visit right now

 

[ozstamps]

I think the US Government and ozzie Government might have something to say about it too. Like NO WAY JOSE.

Few realise that United SYD-SFO flight still operates daily, as a point of interest.

This is after all just a virus. Well over 10 times more people died of Influenza last year and in recent years, than have died so far from Covid, and no planes were grounded. Yes many more will pass - most elderly, and even if it gets to a milion dead it is only slightly worse that the 650,000 flu fatalities each and every recent year.

Twice as many Americans died of the Flu last year than all guns deaths combined. (30K to 60K roughly) President Trump was incredulous recenty that ANYONE still died of Influenza despite that sobering stat. Gobsmacking.

It will pass and weaken thank goodness, and life and flights will then chug along until the next nasty bug appears.

Possibly LESS frequent flights to some places, and some carriers like Virgin will be badly wounded, even if they survive. But they will not be alone there.

 

[MEL_Traveller]

This is after all just a virus. Well over 10 times more people died of Influenza last year and in recent years, than have died so far from Covid, and no planes were grounded.

It is (just a virus). But one without prevention or cure... unlike the flu.

So unlike the flu we will end up with 10-15% unemployment. And others extending loans or lines of credit which they will need to pay back. Money for travel might be tight for a couple years.

I tend to agree though that for the others, airlines will come back, competition will come back, demand will be generated. These companies are out to make money.

 

[Must...Fly!]

You can use points to fly SYD-SFO direct today Saturday at 11.30am on United for the weekend if you really wish. Oops you did not transfer your VA points to SQ - I forgot!

I'll live if I lose my points and am aware of the "risks".

And clearly I'm not travelling overseas now because the government will basically not permit me to leave.

Airlines will bounce back fast on near all main routes - they always have. There may be a few less and few broker than in January but it will all largely get back to normal.

We'll see, but this is not your typical economic downturn. These billion dollar companies have gone to basically zero revenue in a heartbeat.

Not sure of any businesses on planet earth that can do that without consequences of one form or another.

 

[McLarin]

This is after all just a virus. Well over 10 times more people died of Influenza last year and in recent years, than have died so far from Covid, and no planes were grounded. Yes many more will pass - most elderly, and even if it gets to a milion dead it is only slightly worse that the 650,000 flu fatalities each and every recent year.

I can tell you now that this is more than "just a virus". As a human race we have no immunity to the virus and its "slippery" nature is making it difficult to contain. This virus literally clogs your lungs, suffocating you to death. If you are after proof, ask me, I'm on the frontline.

International travel is going to be severely affected until an adequate preventative measure is developed.

 

[pauly7]

I'll live if I lose my points and am aware of the "risks".

And clearly I'm not travelling overseas now because the government will basically not permit me to leave.



We'll see, but this is not your typical economic downturn. These billion dollar companies have gone to basically zero revenue in a heartbeat.

Not sure of any businesses on planet earth that can do that without consequences of one form or another.

This is certainly the challenge and without a ‘deep freeze’ on almost all costs it is financially impossible for these companies to survive and of course this includes airlines.

If VA had invested more in freight that would have been a small lifeline at least.

 

[pauly7]

Back on topic.

Appears VA has cranked up a social media campaign to call for help from the government.

Virgin Australia on LinkedIn: #keeptheairfair | 396 comments

A monopoly in Australian skies will be good for no one. Not the 25 million people who fly with Virgin Australia. Not our 10,000 incredible people, or the… | 396 comments on LinkedIn

www.linkedin.com

 

[pblackie]

I'm leaving my points with Velocity but then I am used to taking risks. But then I also didn't rush out and buy toilet paper and just lived on the edge with one roll left.

Likewise, could be a risky move but on the other hand if VA pull through there will be fewer of us with points to use for upgrades and redemptions.

 

[alexy23]

Redeemed my 280k points through VA for a return trip in J to Europe end of November on SQ.

Risky that SQ will be flying by then? Very
Risky that VA could go under and not honor ticket? Yes
Better to risk this than buying 12 toasters that may never arrive? HELL YES

 

[hydrabyss]

Likewise, could be a risky move but on the other hand if VA pull through there will be fewer of us with points to use for upgrades and redemptions.

It feels like you have to pick a team and the Australian way is to back the underdog.

 

[jonboixxx]

I hope you are right but I just don’t see things rebounded as quickly as people think. Maybe some key routes will bounce back quickly who knows. As for going to SFO today, no thanks. The US would be close to the last place on Earth I’d visit right now

That's right up there with jumping on a cruise ship, ever