Bain Capital takes Control of Virgin Australia

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Wonder if we will ever find out what the deal with Branson is.
Or if it will be hidden until an eventual IPO or sale.
 
AIRwin said:
Virgin reborn on the day after Qantas' 100th birthday:
newsroom.virginaustralia.com

New chapter for Virgin Australia begins today as Deloitte announces completion of sale to Bain Capital

17 November 2020: Deloitte Restructuring Services partners, and joint Virgin Australia Voluntary Administrators Vaughan Strawbridge, John Greig, Richard Hughes and Sal Algeri today announced the comp
newsroom.virginaustralia.com newsroom.virginaustralia.com
Click to expand...

And poor old VA1 lived its last day on the day of Qantas' birthday! Bizarre timing!
 
moa999 said:
Wonder if we will ever find out what the deal with Branson is.
Click to expand...

I suspect we'll never know because they really don't have to report any of this stuff.
 
Judging by the release of the recent Virgin ads, I'd suspect they've done a deal with licensing in regards to Branson. As for whether he has a stake or not, who knows? (as it's no longer necessary for Bain to report stuff to the ASX going forward).
 
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HS-TQE said:
Judging by the release of the recent Virgin ads, I'd suspect they've done a deal with licensing in regards to Branson. As for whether he has a stake or not, who knows? (as it's no longer necessary for Bain to report stuff to the ASX going forward).
Click to expand...
On the reporting requirements VA is now a black box financially which makes me a little nervous booking with them.

At least with QF the red ink will be very transparent and prolific for the foreseeable future...
 
HS-TQE said:
Judging by the release of the recent Virgin ads, I'd suspect they've done a deal with licensing in regards to Branson. As for whether he has a stake or not, who knows? (as it's no longer necessary for Bain to report stuff to the ASX going forward).
Click to expand...

Agreed and by the way the ads are awful... tacky it reminded me of Jetstar’s launch campaign. Bit tone deaf as well...
 
antycbr said:
On the reporting requirements VA is now a black box financially which makes me a little nervous booking with them.
Click to expand...
As long as you use a credit card then you should be fine.
antycbr said:
At least with QF the red ink will be very transparent and prolific for the foreseeable future...
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Transparent & Q don't really go together IMHO. Creative accounting & Q on the other hand...

Does anyone really believe that the value of nearly 300 Q aircraft did not fall by even $1 between June 30, 2019 & June 30, 2020?
 
does not say much that we did not know already. could have been more details about the lounges. eg I wonder if Mackay lounge reopen or there going to close it.
 
melb78 said:
does not say much that we did not know already. could have been more details about the lounges. eg I wonder if Mackay lounge reopen or there going to close it.
Click to expand...

It says a few we didn't know:

- Lounges reopening include Melbourne, Sydney, Brisbane (from today), Adelaide (new lounge in 2021), Perth, and the Gold Coast.
- Lounges closing include Darwin, Cairns, and Mackay (with Canberra under review)

- Business class will relaunch with a proper product early next year so until then expect snack boxes.
- New economy buy onboard menu re-launches next year (but tea/coffee/water remains free).
- By December 2021 all major airports will have self-service check in and bag drop.
 
AIRwin said:
newsroom.virginaustralia.com

Ready for take-off: Virgin Australia Group soars out of administration, unveils future direction

• New Virgin Australia Group CEO, Jayne Hrdlicka, announces future direction • Targets mid-market • Lounges to re-open from today
newsroom.virginaustralia.com newsroom.virginaustralia.com
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Is anyone else having issues with the link - coming up as a narrow column on the page & goes for >100 lines?


In case you do - it is all below...

Glass half full - it is nothing like what the 'sky is falling brigade' have been predicting (version #78), clearly sets out aiming to own 1/3rd of domestic market ✅, maintain & refurb lounges ✅, keeping regional operations ✅,

Glass half empty - no free food on economy anymore but complementary tea/coffee etc ❌, no material changes to VFF ❌(what is your definition of material), nothing about international airline links ❌, nor about international VFF redemptions ❌, actually I don't think the word international gets used once ❌❌.

For day one I suppose it is hard to please everyone, but at least some mention of the elephant in the room aka International flying - would have been appreciated. Even if it was just 'in discussions' about potential....

Free food - true you don't really need (95% of people perhaps) a meal for a <90 minute flight, but what about to/from Perth? From the little experience I have vs many other AFFers with 'buying food' - not many people seem tempted on BA flights within Europe despite it coming from M&S's award winning food to go. Perhaps wondering how many flights it has gone before getting to you has something to do with it.

A hybrid version of this - meals on international flights but must buy extra snacks (Hawaiian Airlines) does work quite well with (weak stomached AFFers look away now) their most popular option seemingly taken up by 1 in 10 - 2 minute noodle bowls. Exactly the same brand stocked in all the HNL airport lounges. They are good, much more savoury & some dangerously hot spices. Surprisingly HA will also fill BYO noodle bowls for people!

I wonder if given JH's joining HA's board last year had anything to do with this?

Jayne Hrdlicka | Hawaiian Airlines | Newsroom
newsroom.hawaiianairlines.com › corporate › board › j...
Jayne Hrdlicka joined our Board of Directors in July 2020. Hrdlicka is a globally recognized executive with over 20 years' experience leading top international ...
_____________________________________________________
​
The plan will see the airline compete in its mid-market heartland for guests who want a more premium experience at an affordable and competitive price. While Virgin Australia will serve all segments of the market, it will build its proposition around its long-standing and most loyal guests, which include price conscious corporate travellers, small to medium businesses, premium leisure travellers and holidaymakers.
The plan’s major elements include:
• A commitment to retain a domestic market share of roughly one third (as was pre-COVID);
• A network of lounges to open as travel demand resumes, with the Brisbane Lounge re-opening today;
• A new-look Virgin Australia Lounge of the future will open in Adelaide in early 2021, which will roll out across the lounge network over time;
• Creating a more accessible Business Class offering to better align to the expectations of the cabin’s core customers;
• New self-service and assisted check-in and baggage drop facilities will open at mainline airports;
• The launch of an updated and more integrated Virgin Australia app providing an enhanced guest experience for Velocity Frequent Flyer members;
• A comprehensive network of domestic and regional destinations; and
• A commitment to regional Australia including the restructuring of Virgin Australia Regional Airlines to become a more sustainable and profitable business following a comprehensive business review.
CEO COMMENTARY
Speaking at Brisbane Airport where she spent her first official day as CEO, Ms Hrdlicka said Virgin Australia will continue to be Australia’s most loved airline for customers who want the most important premium touches without the full premium price.
“Virgin Australia is an airline built on a 20-year history of exceptional customer service and delivering a great experience for millions of Australians. Today, we exit voluntary administration with a renewed sense of who we are and who we are here to serve,” said Ms Hrdlicka.
“It’s a privilege to join Virgin Australia as CEO at such an important moment, and I’ve spent the past few weeks meeting and listening to our team and hearing their ideas. I’m impressed with their understanding of and passion for our guests and look forward to their continued input as we work to refine our plans and define our future together.
“The travel environment is changing and so are our customers’ preferences. We know that leisure travellers, small and medium businesses, and many corporates are now emerging from COVID-19 wanting better value. They are hungry for flexibility and choice, a trusted brand that resonates with their values, and great prices, along with the premium features they value most.
“Today, we’ve announced a plan that will ultimately give our customers what they value without the big price tag: premium lounges, a new and fresh retail offering onboard, a choice of cabins, better digital technology and a more streamlined check-in experience. We will also continue to deliver our award-winning service, strong network of destinations, an award-winning frequent flyer program and a safe and reliable operation.
“Australia already has a low-cost-carrier and a traditional full-service airline, and we won’t be either. Virgin Australia will be a mid-market carrier appealing to customers who are after a great value airfare and better service. We will continue to evolve our offering for our customers based on data and feedback, but the Virgin Australia experience millions of travellers know and love is here to stay.
“We emerge today stronger, more competitive, and ready to face the challenges ahead. We removed an enormous amount of complexity from our business, greatly improved our cost base, and have an extraordinary team on the ground and in the air to deliver our new plan. We are more resilient than ever and have the backing of Bain Capital who are deeply invested in seeing us succeed over the long term.
“As we have seen with the recent issues with South Australia, the travel market remains uncertain. We are however seeing some positive signs of recovery. Borders are beginning to open and a potential vaccine is on the way. We expect continued volatility, but as demand recovers, we’ll achieve a market share consistent with our pre-COVID position and continue to invest in, and grow, the fleet in line with increases in demand.
“Shaping our future will be a collaborative effort across the Virgin Australia Group and I’m thrilled to see the genuine excitement from our people about the future of their airline.”
IN-FLIGHT EXPERIENCE
Business Class
Virgin Australia will retain its much-loved Business Class seats and exceptional service provided by its cabin crew, but will complete an end-to-end review of the Business Class offering before relaunching it in 2021. The review, done in collaboration with the airline’s crew, will ensure better alignment to guests’ needs, while maintaining the elements they love.
More detail will be revealed next year.
Economy
Virgin Australia will continue to offer Australia’s only Economy-X seating. Introduced in 2017, the extra leg room seating, complete with its own dedicated overhead luggage compartment, continues to be a popular upgrade purchase for Economy customers.
An exciting and fresh buy onboard menu will replace the existing snack early next year, and customers will continue to be offered complimentary tea, coffee and water. = Q 'enhancement'
In-flight WiFi and Inflight Entertainment remains under review and more details will be announced in 2021.
LOUNGE EXPERIENCE
Domestic Lounge network
Virgin Australia’s lounges will continue to be an important part of the airline’s offering for frequent flyers.
As government-imposed travel restrictions ease and travel demand resumes, Virgin Australia will re-open a network of domestic lounges, at airports where high volumes of frequent flyers travel. Virgin Australia’s first-to-market Premium Entry feature will remain. Lounge memberships that expired during the COVID-19 period will be extended for 12 months from the original expiry date.
The domestic Lounge network will include:
• Melbourne
• Sydney
• Brisbane
• Adelaide
• Perth
• Gold Coast
Initially, lounges will offer guests an interim food and beverage menu, which will be reviewed as the lounge network gradually re-opens and passenger volumes return.
The offering will adhere to COVID-safe protocols and will include fresh and pre-made food, including sweet and savoury snacks, sandwiches and fruit, along with barista-made coffee, juices and premium sparkling, wine and beer.
Due to low visitation, the Darwin, Cairns and Mackay lounges will close. The Canberra lounge remains under review.
Reimagined lounge to open next year
The recently built Adelaide Lounge will open in the first quarter of 2021. The Lounge is a prototype of the Virgin Australia Lounge of the future and will provide customers with an experience and aesthetic more aligned to the Virgin brand they know and love. The new design will roll out to the lounge network over time.
AIRPORT EXPERIENCE
State-of-the-art new check-in facilities
New state-of-the-art self-service and assisted check-in facilities will open across major airports by December 2021, simplifying the airport experience and leveraging new technology.
The hybrid check-in facilities, which currently feature in Melbourne and Perth, will allow Virgin Australia to streamline customer flow through the airports, substantially reducing queue wait times, and making travel easy and seamless for passengers.
The facilities, a mix of kiosks and assisted check-in counters, mean Guest Services agents can come out from behind a desk and provide a more concierge-style service for passengers.
TECHNOLOGY
Mobile App
Technology will play a key role in the airline’s evolution and the Virgin Australia mobile app will be enhanced through 2021, creating a more integrated experience for travellers and Velocity Frequent Flyer members. There is a significant pipeline of technology projects which will combine to create significant enhancement to our guest’s experience.
The app will enable a much more personalised travel experience and one single gateway to engage with the airline and Velocity.
COMMITMENT TO REGIONAL AND CHARTER FLYING
Virgin Australia Group has confirmed plans to retain Virgin Australia Regional Airlines following a strategic review of its operating model and reaffirmed its commitment to charter and regional flying from its base in Western Australia.
COMMITMENT TO CUSTOMERS
In a commitment to customers, Virgin Australia is waiving applicable change fees and providing travellers with unlimited booking changes for reservations with travel between now and 31 January 2021. More information on the airline’s Passenger Promise can be found here.
VELOCITY FREQUENT FLYER
With no material changes to the program, Velocity Frequent Flyer’s 10 million members will continue to earn and redeem Velocity points through a host of airline and non-airline partners.
In a commitment to members, Velocity granted a 12-month status extension earlier this year, and there has been no change to the number of points needed to redeem rewards.
The multi-award-winning frequent flyer program will announce a number of significant new partnerships in 2021, giving members more opportunity to earn points on every day spend.
 
henrus said:
- Lounges closing include Darwin, Cairns, and Mackay (with Canberra under review)
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Bit surprised they'd consider shuttering Canberra, admittedly it hasn't been that busy the times I've been there (unlike their SYD lounge). Guess QF was super effective at keeping the golden handcuffs on the CBR govt and contractor travellers.
 
Not content with grabbing some of the discarded former VA leased 737s (delivered from the Virgin Blue era), REX are doing what they are doing best:

"Whinging" about the proposed VA/QQ alliance filed at the ACCC (REX had posted objections recently).

australianaviation.com.au

Rex hits out at Virgin and Alliance collaboration

Rex has asked the ACCC not to grant Virgin and Alliance ‘temporary’ authorisation to collaborate on 40 regional routes.
australianaviation.com.au australianaviation.com.au
 
Nothing much in the press release to scare FF's - more reliance on personal control of checkin/bags etc, new app and less airport staff interaction, likely similar reduction in lounge service desk staffing - PR calls it a 'more personalised travel experience' but thats better known as DIY...

But apparently the same earn/burn Velocity points partners but with new partners coming next year - best would be * alliance tie-in. Given VA no longer have Intl routes, that simplifies the previous Air NZ politics but that mite be too much to hope for ?

Cant be too concerned about lounge closures apart from CBA (one of the nicest) as we are in HBA and have never ever had a lounge.. Maybe Syd will get that upstairs area opened to us

Wud be quite happy if J stays more/less the same as nothing is more than 2h30 from HBA, but appreciate its a different story for those doing EC to PER or return.

Flying with VA in 2 weeks and keen to see how they hv restarted.
 
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BCons said:
Nothing much in the press release to scare FF's - more reliance on personal control of checkin/bags etc, new app and less airport staff interaction, likely similar reduction in lounge service desk staffing - PR calls it a 'more personalised travel experience' but thats better known as DIY...

But apparently the same earn/burn Velocity points partners but with new partners coming next year - best would be * alliance tie-in. Given VA no longer have Intl routes, that simplifies the previous Air NZ politics but that mite be too much to hope for ?
Click to expand...

Global alliances outside of the existing bespokes (with the exception of ending the HNA group agreements) are less likely to happen considering they've retained the EY, DL interline/codeshares (and would not please UA, a rival of DL).

This is despite VA/Velocity ending FF earn on a 'VA' code on those partners.

Edit: There is also the cost of joining any global alliance, which would be expensive and VA's systems would have to go through an extensive upgrade, which Bain is not likely to be willing to spend money on anytime soon.
 
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