Virgin Australia to be sold to Bain Capital

[kamchatsky]

Surely they had to do this for international services to re-commence (at some point).
If they liquidated the entity post Administration they would have to had to have setup a new one in the event of restarting international.

At this time, it could be another 2 years before VA would go international anyway.

May be they should look at getting A320neo XLR. However it would most likely be second hand 787s as there should be plenty of them available, as well as they are Boeing company.

 

[HS-TQE]

The only short-medium term Bain could with their restarted VAi subsidiary is to fly to NZ and the Pacific Islands anyway, travel bubble talks pending. Bain has already admitted long haul is some time off (if at all), despite 37x 787s hitting the leasing market after Norwegian Air Group closed down their loss making Long Haul subsidiary to (well this sounds familiar).. concentrate on Domestic and Short Haul International.

 

[Must...Fly!]

The only short-medium term Bain could with their restarted VAi subsidiary is to fly to NZ and the Pacific Islands anyway, travel bubble talks pending. Bain has already admitted long haul is some time off (if at all), despite 37x 787s hitting the leasing market after Norwegian Air Group closed down their loss making Long Haul subsidiary to (well this sounds familiar).. concentrate on Domestic and Short Haul International.

There will be plenty of long haul aircraft available for the next few years at low prices.

Even before covid Etihad were storing brand new A350-1000s in France. If they don't bring the A380s back then they may come out of storage I guess. Otherwise, just more supply on the market.

I really can't see long haul coming back in any meaningful way for VA in the medium term. To the extent I'm happy to try Qantas group again for the first time in 8 years. Alliances might actually mean more than before the pandemic, with more limited international networks for individual airlines.

 

[Bagpuss]

I still stand by belif that administration gave Virgin the opportunity to clear out the A330 and B777 fleet and to introduce a new fleet at the right time.
Also, I expect any long term international destinations may look a bit different. IE Perth > Europe, Sydney to alternative USA destinations

 

[AIRwin]

Also, I expect any long term international destinations may look a bit different. IE Perth > Europe, Sydney to alternative USA destinations

HND?

 

[jase05]

The only short-medium term Bain could with their restarted VAi subsidiary is to fly to NZ and the Pacific Islands anyway, travel bubble talks pending. Bain has already admitted long haul is some time off (if at all), despite 37x 787s hitting the leasing market after Norwegian Air Group closed down their loss making Long Haul subsidiary to (well this sounds familiar).. concentrate on Domestic and Short Haul International.

VS handed a few of their 787’s back too

 

[HS-TQE]

I still stand by belif that administration gave Virgin the opportunity to clear out the A330 and B777 fleet and to introduce a new fleet at the right time.
Also, I expect any long term international destinations may look a bit different. IE Perth > Europe, Sydney to alternative USA destinations

Negotiations in administration would've allowed VA to terminate (most) of their leases, e.g A330s and half the 737 fleet.

Out of the (former owned) encumbered (mortgaged) fleet, The 77Ws and some of the 737s were offloaded to the encumbering banks.

 

[Must...Fly!]

For whatever it's worth, I am pretty sure the A330s are still sitting on the tarmac in MEL and PER, all locked up and untouched still in VA colours.

 

[AIRwin]

For whatever it's worth, I am pretty sure the A330s are still sitting on the tarmac in MEL and PER, all locked up and untouched still in VA colours.

Except XFJ. The 77Ws are in WTB...

 

[HS-TQE]

The A330s were re-registered to the leasing companies and will be ferried out at some point in the near future.

The encumbered (Formerly owned) 777s and 737s were just re-registered to the bank companies not long ago, so they'll be ferried out at some point as well.

 

[ja1]

Except XFJ. The 77Ws are in WTB...

Man, this is a really interesting post which made me go look.. and I'd be really curious what they're doing in WTB (is there spare hangar space there or literally just any space at all works?). I noticed that as well as VH-VOZ, VH-VPD and VH-VPH, an A330 as VH-XFH is also out there.. and photos all on the same day (Nov 2020) so I assume all out of service..

 

[AIRwin]

I noticed that as well as VH-VOZ, VH-VPD and VH-VPH, an A330 as VH-XFH is also out there.. and photos all on the same day (Nov 2020) so I assume all out of service..

I believe both VPE and VPF are now also out there...

 

[ja1]

VPF is now also out there...

I assume these while still in VA colours are all owned by a bank or a bond issuer or a corporate entity that is owned by one of them.. and if they aren't leased locally will end up flying out of the country sometime (probably in 2021?). Hope WTB doesn't have any of the really big storms that can sometimes go through the area with hail...

 

[HS-TQE]

I assume these while still in VA colours are all owned by a bank or a bond issuer or a corporate entity that is owned by one of them.. and if they aren't leased locally will end up flying out of the country sometime (probably in 2021?). Hope WTB doesn't have any of the really big storms that can sometimes go through the area with hail...

The aircraft owned by the banks all have loans taken out against them applied by the previous owners. Which is basically the entire (formerly) 'owned' 737 and 777 fleet.

The administrators were aware that some 'owned' aircraft were encumbered/mortgaged, they didn't expect it to be the entire 'owned' 737 and 777 fleet.

 

[RAM]

The aircraft owned by the banks all have loans taken out against them applied by the previous owners. Which is basically the entire (formerly) 'owned' 737 and 777 fleet.

The administrators were aware that some 'owned' aircraft were encumbered/mortgaged, they didn't expect it to be the entire 'owned' 737 and 777 fleet.

Not sure why not?

Q has virtually every aircraft that they could raise money against - fully encumbered.

The new B787 deliveries in 2019 etc - have all been fully encumbered since.

Q has some problems as with 25+ year old planes - there are virtually no lenders who will lend against them at anything more than 10% or so of the Q carrying valuation which bears no resemblance to 'market value' but instead an internally generated valuation.

Curious the auditors have continued to allow this when the basis for the Q method is no longer applicable due to long term groundings....

Bain would rather be late to the 'new international' party once borders begin slowly re-opening than too early. The domestic border experience illustrates just what a minefield exists.

 

[Bagpuss]

Bain would rather be late to the 'new international' party once borders begin slowly re-opening than too early. The domestic border experience illustrates just what a minefield exists.

I think Virgin are pretty much spot on with their B737 MAX and return to international intentions.

There's always going to be many views on it and Bain Capital are in the game of aircraft leasing (at least with Virgin Atlantic)

 

[HS-TQE]

Also to add VS did recently did a sell and leaseback of two 787-10s to a Bain-financed leasing company.

Bloomberg - Are you a robot?

www.bloomberg.com

 

[milehighclub]

Virgin is making another 350 staff redundant in head office and ground based roles.

 

[Bagpuss]

Virgin is making another 350 staff redundant in head office and ground based roles.

Is there a source?

It's hardly surprising and there was no guarantee of further cuts. (Also with Jetstar moving B787 fleet into long term storage paints the current bleak picture as they could have been used domestically.)

 

[I love to travel]

Virgin is making another 350 staff redundant in head office and ground based roles.

What about the promises to Qld government re jobs when the government invested the $$?