Virgin Australia Financially Secure? [Now in Voluntary Administration]

[dajop]

Yeah like Branson is going to cop planes in a Virgin livery flying around for a non virgin brand....

Just to be argumentative, they aren't going to be flying 130 planes around in the near future, so they can take time to rebrand.

And to argue with myself, conversely, they won't be paying $15m/year in royalties either if there aren't 130 planes flying around (assuming royalties are largely based on revenue).

 

[travel_bug]

I feel ambivalent about the 7:30 interview, main takeaways:

• No refunds,
• Struggling airline shareholders couldn’t provide help because their own bailouts were locked in for particular purposes,
• “That’s a question for the administrator”

 

[jakeseven7]

PS performance on 730 very flat, he couldn’t really comment on anything deferring to the new owners and administrators.

He explained that VA was a poor financial performer with too much debt that’s why they lasted only a few weeks.

Clearly on a very tight brief.

The intro piece was damning - ‘Virgin May have Australia in the name but is almost entirely foreign owned’ . Thanks Branson for stirring the pot.

As we expected.

 

[Bagpuss]

PS performance on 730 very flat, he couldn’t really comment on anything deferring to the new owners and administrators.

He explained that VA was a poor financial performer with too much debt that’s why they lasted only a few weeks.

Clearly on a very tight brief.

The intro piece was damning - ‘Virgin May have Australia in the name but is almost entirely foreign owned’ . Thanks Branson for stirring the pot.

As we expected.

He cannot really comment on anything as everything is covered in confidentiality deeds so it’s a big frustration to staff, suppliers the public etc.
Also, the company is ran by the administrators which in administration. Any debt incurred during administration is the liability of the administrators if the company ran out of money.

 

[I love to travel]

To those not worried about a monopoly.
Yesterday morning Adl to Bne flight in December was $180.
Today $322.
Enough said.

 

[moa999]

$26m .... just for the planes. Then lounges, terminals, gate signage, boarding passes, business class napkins and salt and pepper shakers.

So payback of day 2-3yrs or a 33% return. That's pretty good.

 

[travel_bug]

He cannot really comment on anything as everything is covered in confidentiality deeds so it’s a big frustration to staff, suppliers the public etc.
Also, the company is ran by the administrators which in administration. Any debt incurred during administration is the liability of the administrators if the company ran out of money.

I kinda question the whole point of the interview then apart from taking up air time. Even from Leigh Sales it felt like a softball interview.

 

[moa999]

Reality is PS isn't in control anymore.

 

[HS-TQE]

PS is really only 'CEO' by title, and looks more of an advisor (and also the person fronting the media) atm. The real guys in charge of VAH atm are the appointed administrators.

 

[melb78]

One good thing i did like from the 7.30 was when leigh asked if the airline would turn into a LCC or the same as it is now and PS sound like he wants to keep it as a FSC. and i wonder out of the 10 or more party's if any of them are airlines or all are pvt equity firms.

 

[clarkkent]

Bidders line up as Virgin clears the debt

Two of Australia’s largest companies, Wesfarmers and Macquarie Group, are said to be contenders in the bidding process to recapitalise Virgin Australia. They join a long list.

www.smh.com.au

contrary to some recent speculation there are no Chinese airlines on the list.

However, Strawbridge said Deloitte was entertaining interest from more than 10 parties - although according to insiders this number has swollen closer to 20 as new expressions of interest came through on Monday night.

 

[jakeseven7]

One good thing i did like from the 7.30 was when leigh asked if the airline would turn into a LCC or the same as it is now and PS sound like he wants to keep it as a FSC. and i wonder out of the 10 or more party's if any of them are airlines or all are pvt equity firms.

He did indicate that would be the new owners decision however....

 

[moa999]

I think the most important thing that PS said tonight was in relation to Velocity where he essentially confirmed the trust structure that was setup for the sale to PE remains in place.

"Those points are not at risk. they are covered. They are cash backed in a trust so our customers can be assured that those points are safe"
(At about 12.50 on my 730 Report recording)

 

[TheInsider]

To those not worried about a monopoly.
Yesterday morning Adl to Bne flight in December was $180.
Today $322.
Enough said.

Prices haven't gone up... Those are standard fares in those fare buckets.

 

[dajop]

Prices haven't gone up... Those are standard fares in those fare buckets.

Of course, there is two ways of increasing the average fare paid, one is increasing the price of fare buckets, the other is of course playing around with availability of different fare buckets.

 

[Must...Fly!]

Of course, there is two ways of increasing the average fare paid, one is increasing the price of fare buckets, the other is of course playing around with availability of different fare buckets.

Quite true. Which the member you quoted would know very well but chose not to articulate for reasons that are obvious to most.

 

[antycbr]

I kinda question the whole point of the interview then apart from taking up air time. Even from Leigh Sales it felt like a softball interview.

I thought Laura Tingle was much more direct. Particularly how this story is now the big story for the government response to the pandemic. Also the political implications for regional conservative backbenchers.

 

[muppet]

So by your math it would pay back in a couple of years - good math work

And airlines spread out rebrands over years as well, its not all hit in one go.

My point was, not a good investment for a company that doesn’t look like it can last 6 months!

 

[travel_bug]

Branson needs to be gagged, he is only hurting VA more. PS needs to get a leash on him quick smart

Just wanted to also note that due to all of Branson’s posturing, this has now resurfaced from the near collapse of BA a decade ago...

 

[hydrabyss]

I agree with your comment on branding, working in the industry it makes me happy people think that

But I disagree the Virgin brand brings anything significantly positive anymore, it’s a brand from the 90’s really. I think a clean new brand where they aren’t stuck paying millions upon millions just to use it would be a good move.

In a small market where only a couple of brands exist anyway, a new brand can get recognition very very quickly and easily as well.

Unfortunately I think I must still be stuck in the 90's then hence the appeal for me. Jeez my run around work vehicle is a 90's commodore ute.