Virgin Australia Financially Secure? [Now in Voluntary Administration]

[wannabeinvestmentbanker]

Massive swing into the close for the Aussie market. VAH oscillating around the 40% gain trading between $0.08-$0.09

 

[jakeseven7]

A group of AFF members did VERY well today

 

[jase05]

A group of AFF members did VERY well today

I wish I had a spare $100k lying around

 

[moa999]

A group of AFF members did VERY well today

Only if they sold.
Was pretty small volumes in the afternoon

 

[wannabeinvestmentbanker]

Only if they sold.
Was pretty small volumes in the afternoon

Volumes weren't that thin into the close. At 3.30pm the average 20 day volume is 360k but was 1.58m at that time today. Looking at the broker activity summary, looks like a lot of the volume went through on retail brokerage like Commsec, CMC markets so some retail punters must be offloading. Unlikely they are day traders so will be taking some loss.

 

[moa999]

Volumes weren't that thin into the close

Well by definition VAH is illiquid due to sub 10% free float. Not surprised it's mostly retail (assume you've got access to a full IRESS account)
Even 1.58m shares at say 7c is only $110k. I only saw two parcels above $1000 trade

 

[jakeseven7]

Only if they sold.
Was pretty small volumes in the afternoon

Sorry wrong thread lol meant for the general stock discussion.

 

[alviau]

Remember VA contracts out alot of staff.

And there is a lot of casual.

Might be easier than you think!

In terms of cabin crew, VA don’t employ contractors nor casuals, they’re all permanent VA employees. So that’s a tough one.

 

[jakeseven7]

In terms of cabin crew, VA don’t employ contractors nor casuals, they’re all permanent VA employees. So that’s a tough one.

They have a huge contract workforce on the ground though.

 

[Gold Member]

Some troubling rumours (unconfirmed sources cited via GSTP) that Virgin Australia has been listed among several other airlines as “Stop Sale”. He doesn’t quote names or sources, yet, but assuming the rumors are accurate this is indeed troubling for Virgin. In the coming days and weeks, uncertainty will breed fear which will further decelerate their forward bookings. Anyone in the travel industry with any insights or knowledge?

9 Airlines Put On "Stop Sale" By Travel Agents...

In breaking news, 9 major airlines have been put on stop sale by leading travel agencies, due to a variety of operational or financial concerns. Even....

www.godsavethepoints.com

As much as I want to support Virgin and wish them all the best, some derisking may be prudent at this time. For me, that means transferring my Velocity points to Krisflyer. Future bookings are another matter.

Do we know what happens to already ticketed awards on non-Virgin partners in the event of solvency issues?

 

[Must...Fly!]

Not sure I buy that article.

AIr Malta - government owned
Air Baltic - 80% government owned
Kuwait - government owned
VIetnam - government owned

 

[Melburnian1]

They have a huge contract workforce on the ground though.

Of non-office staff, wouldn't there be far more in the air (i.e. flight crew and cabin attendants) than check-in staff and baggage handlers? If so, then more are in full or part time, or casual, employment than are contractors.

 

[EzioAuditore]

Do we know what happens to already ticketed awards on non-Virgin partners in the event of solvency issues?

+1, I have SQ J award bookings in Nov to the UK plus 5 digit points balance in velocity account.
Does anyone have the same problem when Ansett collapsed ?

 

[Gold Member]

Does anyone have the same problem when Ansett collapsed ?

Ha, that's partly why I'm asking. My Ansett points vapourised pretty quickly if I recall.

 

[EzioAuditore]

Ha, that's partly why I'm asking. My Ansett points vapourised pretty quickly if I recall.

Transferring to SQ seems the only way out, plus you will get better award availability if booked with krisflyer points. I think cancelling VA award bookings will give you full points and cash refund and only incur $60 cancellation fee.
Did you have any partner award bookings at the time and what happened to them ?

 

[jase05]

Im not panicking at all. Still have over a dozen VA J domestic flights ticketed and a SQ J flight booked with VA points. I only have just over 300k VA points remaining but haven’t even considered transferring them yet. Maybe I have my head in the sand but I still maintain VA will ride this out

 

[pauly7]

Im not panicking at all. Still have over a dozen VA J domestic flights ticketed and a SQ J flight booked with VA points. I only have just over 300k VA points remaining but haven’t even considered transferring them yet. Maybe I have my head in the sand but I still maintain VA will ride this out

You’d be ok anyway if you put your flights on a credit card.

But that article sounds more like rumours than reporting right....? Is it confirmed? Highly irresponsible if it wasn’t, very damaging to the airlines mentioned.

 

[jase05]

You’d be ok anyway if you put your flights on a credit card.

But that article sounds more like rumours than reporting right....? Is it confirmed? Highly irresponsible if it wasn’t, very damaging to the airlines mentioned.

Yeah all booked CC
Agree, that article sounds like more rumours which does no one any favours.
The last thing any business needs is panic cancellations.

 

[pblackie]

I think this extract from one of the author's replies pretty much sums it up - rumour with no confirmed sources "sources will be named in due time, once the information is pushed wider." I hope I'm not proved wrong!

 

[Harthagan]

Of course almost everyone pays using a CC, but how will that save us if the airline goes into administration?