What is Virgin Australia's strategy (post-administration)?

[Obzerva]

This would make so much sense and cents on so many levels….

Yes and no.
Yes, to knock out a competitor.
No, to the looming Saab replacement that's going to need to occur.

 

[jakeseven7]

Yes and no.
Yes, to knock out a competitor.
No, to the looming Saab replacement that's going to need to occur.

Aunty Bain and the murky deep pockets of capital injections can surely fix that one up for Rexy prop!

 

[docjames]

Virgin Australia takes flight with United Airlines

newsroom.virginaustralia.com

Somewhat unexpected but interesting and great move by VA IMO. Effective April 2022.

 

[HS-TQE]

Going into the extreme, I wonder if Bain are willing to part with the Virgin branding (would mean buying RB's miniscule 5% stake), would also save them a few $$$ which outweight the CapEx of rebranding away from VA.

Velocity Air may have a ring to it, renamed after the most profitable part of the old VA 1.0 busienss.

 

[henrus]

Going into the extreme, I wonder if Bain are willing to part with the Virgin branding (would mean buying RB's miniscule 5% stake), would also save them a few $$$ which outweight the CapEx of rebranding away from VA.

This would never happen. Somewhere in the administration report there was a comment about how valuable the VA brand actually is within Australia. Bain could have very easily spent a significant amount of money to launch an Australian 737 domestic airline (sounds famililar...).

This is part of the reason why Rex isn't doing so well because people (outside of frequent flyer circles) are unaware they exist.

 

[Mr H]

This is part of the reason why Rex isn't doing so well because people (outside of frequent flyer circles) are unaware they exist.

I was watching planes flying overhead the other day thinking how nice it was to see flights again. I saw a jet with strange livery and actually had to look it up on Flight Radar to discover it was a Rex 737.

 

[jase05]

No real surprise but Bain looking to list VA on the ASX next year

 

[HS-TQE]

No surprise there, but that quick?

Would not surprise me if UA is picking up a minority stake in VA from Bain at some point as part of today's deal, just waiting for the right time to announce it.

'Stealing VA away from DL' with a minority stake from Bain would pretty much be UA's version of DL 'stealing LATAM from AA and Oneworld'.

 

[jakeseven7]

No surprise there, but that quick?

Would not surprise me if UA is picking up a minority stake in VA from Bain at some point as part of today's deal, just waiting for the right time to announce it.

'Stealing VA away from DL' with a minority stake from Bain would pretty much be UA's version of DL 'stealing LATAM from AA and Oneworld'.

Very very quick…. Harder to make money than they thought? Probably didn’t gamble on the Australian state premiers systematically destroying consumer confidence in domestic travel! . Well they have another year to jettonise all the bodies under private ownership before the spotlights once more are on them again.

 

[jase05]

Very very quick…. Harder to make money than they thought? Probably didn’t gamble on the Australian state premiers systematically destroying consumer confidence in domestic travel! . Well they have another year to jettonise all the bodies under private ownership before the spotlights once more are on them again.

Bain are saying they have been approached by investment banks with proposals to relist them on the ASX and it sounds like Bain want to retain a sizeable part.

 

[AustraliaPoochie]

From an indepth read of the email from JH, what do you colleagues think/feel, is DL being turfed out?
It says more info from early 2022, but from the wordings, it says winding down.
A big thank you lah lah lah, etc, but it looks like bad news for those of you who have flown DL and prefer it over UA.
I have not travelled on either, so can't say aye or nay, or which is a better product, or even if HA is a better product, but its a pity we can't have all 3 US carriers in the "team".
***((Winding down!))***
Edit: having a read on google, it says DL is a better airline.
2nd edit: ah, yes, *end date* of DL partnership, so indeed, its the end.

 

[HS-TQE]

Bain are saying they have been approached by investment banks with proposals to relist them on the ASX and it sounds like Bain want to retain a sizeable part.

This sounds like this is history repeating with VB (DJ), with Toll gradually drawing down their majority stake (starting with a minority stake to NZ and smaller banks/investors making up the rest) if this eventuates.

Only this time, potentially 'starting' with a UA minority stake (in place of NZ) and the smaller banks/private investors making up the minority stakes.

 

[jase05]

From an indepth read of the email from JH, what do you colleagues think/feel, is DL being turfed out?
It says more info from early 2022, but from the wordings, it says winding down.
A big thank you lah lah lah, etc, but it looks like bad news for those of you who have flown DL and prefer it over UA.
I have not travelled on either, so can't say aye or nay, or which is a better product, or even if HA is a better product, but its a pity we can't have all 3 US carriers in the "team".
***((Winding down!))***
Edit: having a read on google, it says DL is a better airline.
2nd edit: ah, yes, *end date* of DL partnership, so indeed, its the end.

I have no real experience with US airlines to ascertain which is good or bad but this is all about VA making money and it’s a great move by them.

 

[Andrew Curran]

Kylar Loussikian is reporting in the Oz tonight that Bain is looking to relist VA mid-2022 while retaining a significant stake themselves.

"A source close to the airline, speaking on condition of anonymity, said an ASX listing would allow Bain to recoup some of its investment in Virgin while befitting from the rapid return of travel as state borders reopened and international travel began."

It's been a busy day for VA. While VA and UA expect to have their partnership up and running by April 2022, DL advises the current codeshare arrangements with VA will end in June 2022 - that's two months of overlap and indicates one or more airlines have their timelines off-kilter.

DL says "Delta is aware of today's announcement and disappointed by Virgin Australia's decision to partner with a competitor. Delta's partnership and codeshare agreement with Virgin Australia will end in June 2022."

 

[MooTime]

Partners between airlines change........nothing to see here.

I've flown UA years ago, but had 5 or 6 vodkas in quick time so will offer no opinion on overall product! Have read that DL marginally better, but VA a value carrier & maybe UA more a value carrier than DL.

When VA list maybe they can get to ~60% Aussie owed like big brother QF are.

VA in solid position I believe, going well, could've been oh so much worse.

 

[HS-TQE]

VA refreshing Business menu, and adding more to the BoB Economy menu (Pies, Toasties, Sandwiches, Quiches) with the restart of Virgin International Short-Haul.

Virgin’s summer menu refresh puts the focus on ‘fresh’

Here is what’s being dished up at 30,000 feet for Virgin Australia’s business class and economy passengers.

www.executivetraveller.com

 

[MH_fan]

I can't comment on long-haul international with the American carriers, as I've only ever done UA and they were terrible (even in First). Domestically, in the US, DL is my preferred carrier.

 

[HS-TQE]

Virgin's first short haul international flight in 20 months is now taken off and in the air. VA183's ETA in NAN in roughly 3 hours from now.

VA183 (VOZ183) Virgin Australia Flight Tracking and History - FlightAware

Track Virgin Australia (VA) #183 flight from Sydney to Nadi Int'l

flightaware.com

 

[Saab34]

So one of the recent Virgin 737s delivered has got a repaint and seat install.

However they repainted it white. Rego and Nosegear as per normal silver.

Star Alliance scheme anyone? The stars appear to be aligning.

 

[http_x92]

When you wish upon a star... maybe. Just maybe. AC, UA partnerships just in the past 3 months...