Virgin to lose A330's and B777's - become mid range airline - really?

[Saab34]

I hope all staff in this business get shares or something. One would think Jayne Hrdlicka would be in for at least a $20m bonus from this transaction. Management Team $5-10m. Bit rough on the many thousand other folks who also play a part in the cogs, get nothing.

Why sooner might be better for the Virgin float

Conditions almost couldn’t be better for Virgin’s IPO right now. But that might change if cental banks need to do more to crush inflation than investors think.

www.afr.com

 

[kyanar]

Perhaps Rex might buy it


(Anyhoo I think VA will be around for a while yet, until someone piles up the debt again)

Funny you say that - I have a Bloomberg article in front of me saying that Virgin Australia is currently weighing debt financing options (i.e. piling up the debt again) to repay Bain Capital in advance of the IPO on the ASX (which would no doubt be swiftly followed by Bain quietly divesting themselves of VA shares).

The playbook seems a little too Anchoragesque for my liking...

 

[HS-TQE]

Funny you say that - I have a Bloomberg article in front of me saying that Virgin Australia is currently weighing debt financing options (i.e. piling up the debt) to repay Bain Capital in advance of the IPO on the ASX (which would no doubt be swiftly followed by Bain quietly divesting themselves of VA shares).

The playbook seems a little too Anchoragesque for my liking...

Virtually little to no unencumbered assets left. Unless if Bain wants to "borrow" heavily off Velocity like the last set of owners (SQ, EY, HU, etc) did last time. It won't be the first time that Velocity as a asset had funds 'stripped'

 

[Moopere]

Bit off topic, sort of, but I just had an experience PER-KUL on D7 that I reckon could work for VA2. Its the non-business angled recline seating.

D7 don't try for even an instant to pretend these seats are business ... but they are angled, not completely lie-flat, but geez its pretty close. I had strong Deja'vu that the 332 was one of the old EK planes that VA originally flew as business way back in the day - perhaps I'm wrong.

In any event, great experience for a good price. Its not business and they don't charge J pricing - was about AU$750 one way up from about $250 odd in normal Y. Flight was 5.5 hours.

Granted VA no longer has any 332's in their fleet, but I can't imagine it would be impossible to fit 4 of these seats into a 737 in 2:2 config (the 332 is 2:2:2) ... so 1 or perhaps 2 rows of angled lie-flat seats

All things are not equal, I understand the pressures of pricing in the domestic market, but $1600 one way PER-MEL on the cough 737 J currently offered is in no way enticing.

 

[MEL_Traveller]

Bit off topic, sort of, but I just had an experience PER-KUL on D7 that I reckon could work for VA2. Its the non-business angled recline seating.

D7 don't try for even an instant to pretend these seats are business ... but they are angled, not completely lie-flat, but geez its pretty close. I had strong Deja'vu that the 332 was one of the old EK planes that VA originally flew as business way back in the day - perhaps I'm wrong.

In any event, great experience for a good price. Its not business and they don't charge J pricing - was about AU$750 one way up from about $250 odd in normal Y. Flight was 5.5 hours.

Granted VA no longer has any 332's in their fleet, but I can't imagine it would be impossible to fit 4 of these seats into a 737 in 2:2 config (the 332 is 2:2:2) ... so 1 or perhaps 2 rows of angled lie-flat seats

All things are not equal, I understand the pressures of pricing in the domestic market, but $1600 one way PER-MEL on the cough 737 J currently offered is in no way enticing.

It would be possible for full flat seating on a 737. Several options… 2+2 angled away from the aisles, or they could even go for a 2+2 in row 1 and a 1+1 in row 2, with row 2 being ‘throne’ seats. They’d lose 2 seats but probably gain more revenue if full flat.

 

[Bagpuss]

Funny you say that - I have a Bloomberg article in front of me saying that Virgin Australia is currently weighing debt financing options (i.e. piling up the debt again) to repay Bain Capital in advance of the IPO on the ASX (which would no doubt be swiftly followed by Bain quietly divesting themselves of VA shares).

The playbook seems a little too Anchoragesque for my liking...

Unsure how a company which nearly every plane is leased or mortgages can pile up much debt. It removed a lot of costs and liabilities during administration.

The only piling up of debt which can occur would actually be in the Dead of Company Arrangement (DOCA) or purchase of VA by Bain Capital to repay any loans at a interest rate which can incurred when they conducted the transaction.

I'm pretty sure what is actually meant by "weighing debt financing options" means actually that, it has debts IE loans for owned aircraft etc and looking how they could be re-financed in the event of an IPO.

 

[kyanar]

I'm pretty sure what is actually meant by "weighing debt financing options" means actually that, it has debts IE loans for owned aircraft etc and looking how they could be re-financed in the event of an IPO.

The article was quite specific that the purpose of the aforementioned debt financing was to pay dividends to Bain. I would assume Bloomberg reporters of all people wouldn't make a mistake like that when discussing financial matters.

 

[Bagpuss]

The article was quite specific that the purpose of the aforementioned debt financing was to pay dividends to Bain. I would assume Bloomberg reporters of all people wouldn't make a mistake like that when discussing financial matters.

I’m pretty sure they do. I’ve worked for a company which went through voluntary administration and went through a DOCA. What was in the press was misleading, inaccurate and favoured a party.
Bloomberg is a new site. It doesn’t provide any sort of financial advice, it may offer opinions through its news Channels.
If you want factual information including the DOCA (sale) etc, you can find it all here : Virgin Australia circulars and notices | Deloitte Australia | Restructuring, Insolvency & Financial Advisory

 

[oz_mark]

I’m pretty sure they do. I’ve worked for a company which went through voluntary administration and went through a DOCA. What was in the press was misleading, inaccurate and favoured a party.
Bloomberg is a new site. It doesn’t provide any sort of financial advice, it may offer opinions through its news Channels.
If you want factual information including the DOCA (sale) etc, you can find it all here : Virgin Australia circulars and notices | Deloitte Australia | Restructuring, Insolvency & Financial Advisory

That information is over 2 years old now, so not sure how much it tells us about what Bain is doing now.

 

[Bagpuss]

That information is over 2 years old now, so not sure how much it tells us about what Bain is doing now.

You will find that information if Virgin Australia is floated on the stock market as it will be in their prospectus etc.

Virgin Australia hires Goldman Sachs, UBS, Barrenjoey for market debut

Bain Capital has appointed lead managers for a potential initial public offering (IPO) of Virgin Australia, a source with direct knowledge of the matter said, setting the stage for the country's biggest listing since 2021.

www.reuters.com

 

[oz_mark]

You will find that information if Virgin Australia is floated on the stock market as it will be in their prospectus etc.

Virgin Australia hires Goldman Sachs, UBS, Barrenjoey for market debut

Bain Capital has appointed lead managers for a potential initial public offering (IPO) of Virgin Australia, a source with direct knowledge of the matter said, setting the stage for the country's biggest listing since 2021.

www.reuters.com

which means that in between DOCA and Prospectus, we have to rely as best we can on various news channels

 

[HS-TQE]

ex-VPD that was diverted in DRW not long back attempted to leave DRW again today only to be reported as being diverted back into DRW.

 

[Saab34]

Sounds like it needs one hell of a D check to get it in some form of acceptable condition. The question is spend millions fixing it or scrap it and sell the parts. Would appear the latter.

 

[HS-TQE]

Sounds like it needs one hell of a D check to get it in some form of acceptable condition. The question is spend millions fixing it or scrap it and sell the parts. Would appear the latter.

Would be up to the new owners of ex-VPD to decide what to do with it. (The leasing company bought VPD off UMF Bank - who in turn 'bought' VPD directly off VA as one of their mortgagers during the bankruptcy process)

 

[oz_mark]

Sounds like it needs one hell of a D check to get it in some form of acceptable condition. The question is spend millions fixing it or scrap it and sell the parts. Would appear the latter.

As I understand it, that was QRs plan. Part it out.

 

[HS-TQE]

VH-VPD has taken off from DRW and is on its way to MCT before its onwards 'final' destination of DOH.

Source: VH-VPD Flight Tracking and History - FlightAware

There have been (assumed unconfirmed) reports that QR had bought the ex-VA 77Ws from the UK lessors for 'parts' on their own legacy QR 77W (ie eventually cannibalise the ex-VA units and part out).

An interesting passing of hands of 'registered owner' from VA to VA's mortgager (Passed sold/on as part of the Voluntary Administration/Bankruptcy process), then on-sold to the UK lessor and eventually bought by QR.

On a side note: Will be interesting to see the fate of the ex-CX 77Ws at QR if they meet the rumoured same fate as the ex-VA 77Ws.

 

[HS-TQE]

VH-VPD is set to be parted out in Netherlands (EHTW) after arriving last night via MST. Unconfirmed reports that spare parts are set to be acquired by Qatar.

Skyliner - aviation news & more

Skyliner - aviation news & more

www.skyliner-aviation.de

 

[AIRwin]

VH-VPH (now registered to QR as A7-BOG) departed BNE this morning with a brief stop in CGK

 

[HS-TQE]

ex-VPD with titles and rego removed in preparation for scrapping in ENS.

https://flic.kr/p/2ovkSCr

 

[Bagpuss]

I noticed VH-XFE is no longer next to the International terminal at Perth airport. I looked around and couldn't see it. There's nothing about it being able to succesffully take off. Any ideas? (Though I'm assuming it's moved and parked a bit more out of sight.)