Virgin Australia Financially Secure? [Now in Voluntary Administration]

[Vic]

I actually wish you could transfer velocity points into flybuys lol. I wonder if you can transfer velocity to HHonors. I know the other direction is possible

The airline points I've looked at transferring to honors has offered poor value.. Still the vaule is better than no points.

 

[Must...Fly!]

Two words:

Force Majeure

Indeed and has been mentioned here, what are the consequences of missed lease payments when the entire industry is not making lease payments, and no one wants the aircraft that aren't being paid for anyway?

Lessors are better to just delay and/or take haircuts on their due payments.

 

[jakeseven7]

I heard a rumour (rumour only no one crucify me) that VA and QF will shut all domestic lounges.
I guess it kinda makes sense, but what would be the result - push people into more confined space of the terminal and be closer together?.....

 

[Must...Fly!]

I heard a rumour (rumour only no one crucify me) that VA and QF will shut all domestic lounges.
I guess it kinda makes sense, but what would be the result - push people into more confined space of the terminal and be closer together?.....

The food would be considered a possible source of contamination.

If it preserves cash and allows the airline to show government that they are doing absolutely everything and still need help...well, so it should be IMO

 

[Carrots]

Speaking of rumours, I did hear earlier today that those transferring points to KF were also seen racing out of their local supermarket with trolley loads of toilet paper!


Interesting re lounges - surely things have not yet reached a point of being so dire in terms of overall bums on seats that there's no requirement for lounges? (QF could perhaps close Business/Plat lounges and run Q Club only).

 

[lang_13]

I think the reason for closing the lounges would be more related to the “social distancing” concept. Elsewhere in world bars, clubs, restaurants etc have been ordered to shut.

 

[pauly7]

Speaking of rumours, I did hear earlier today that those transferring points to KF were also seen racing out of their local supermarket with trolley loads of toilet paper!


Interesting re lounges - surely things have not yet reached a point of being so dire in terms of overall bums on seats that there's no requirement for lounges? (QF could perhaps close Business/Plat lounges and run Q Club only).

Um how about the other way around

 

[wannabeinvestmentbanker]

COVID-19. By the end of May, most world airlines will be bankrupt

The global airline industry is facing a catastrophic crisis due to the impact of the coronavirus, and without coordinated government and industry action, most airlines will go bankrupt by the end of May 2020. The fear is that national self-interest will prevail in the reconstitution of the...

centreforaviation.com

CAPA has come out saying that without a coordinated approach, many airlines will have insufficient cash to operate by May

 

[Must...Fly!]

COVID-19. By the end of May, most world airlines will be bankrupt

The global airline industry is facing a catastrophic crisis due to the impact of the coronavirus, and without coordinated government and industry action, most airlines will go bankrupt by the end of May 2020. The fear is that national self-interest will prevail in the reconstitution of the...

centreforaviation.com

CAPA has come out saying that without a coordinated approach, many airlines will have insufficient cash to operate by May

And they are dead right.

But as I've said before, governments shouldn't be the only ones propping up airlines. Lessors will absolutely have to come to the party.

 

[pauly7]

Should You Transfer Your Velocity Points Out? Here’s Why You Might Want to! | Flight Hacks

I hate scaremongering and click-baiting. However, the whole Coronavirus situation is causing havoc around the world and airlines are feeling the brunt of it. These are unprecedented times…

flighthacks.com.au

This is being promoted on Facebook... what do we think? Irresponsible or good advice?

 

[Carrots]

“This isn’t a call for panic....”

I’m not sure what fantasy world the writer lives in if he believes that article is anything but.

But it is on the Worldwide Inter webs so it must be true, right?!

 

[jase05]

Should You Transfer Your Velocity Points Out? Here’s Why You Might Want to! | Flight Hacks

I hate scaremongering and click-baiting. However, the whole Coronavirus situation is causing havoc around the world and airlines are feeling the brunt of it. These are unprecedented times…

flighthacks.com.au

This is being promoted on Facebook... what do we think? Irresponsible or good advice?

I hate scaremongering and click-baiting but................

Yeah that tells me all I need to know about this article

 

[antycbr]

I think that one option would be a partial nationalisation of both airlines. Even say 25% would be a sign of faith to investors (QF) and travellers (both) that the government has got their back and allow them to book in the future when things subside.

I think we should have a stake in both airlines as we need their airlift capacity in an an emergency (Wuhan, Bali bombings etc). I also apply the same argument to having a functioning merchant marine and a strategic fuel stockpile, and even some form of domestic industrial capability.

This event is a big wake up call about globalisation and just in time supply chains. The lack of production of test kits domestically has highlighted this vulnerability when the rest of the world stockpiles for their own use.

Post automatically merged: Mar 16, 2020

The food would be considered a possible source of contamination.

If it preserves cash and allows the airline to show government that they are doing absolutely everything and still need help...well, so it should be IMO

Perhaps shut the CL and Club? That'll focus attention in Canberra.

 

[Obzerva]

“This isn’t a call for panic....”

I’m not sure what fantasy world the writer lives in if he believes that article is anything but.

But it is on the Worldwide Inter webs so it must be true, right?!

Out of interest though, let's say you had a million Velocity points, would you hold steady, or would you transfer some out?

 

[p--and--t]

Out of interest though, let's say you had a million Velocity points, would you hold steady, or would you transfer some out?

As someone who had far more than that with Ansett but left with no choices, I can tell you exactly what I would be doing.

 

[PaulllM]

I think that one option would be a partial nationalisation of both airlines. Even say 25% would be a sign of faith to investors (QF) and travellers (both) that the government has got their back and allow them to book in the future when things subside.

I think we should have a stake in both airlines as we need their airlift capacity in an an emergency (Wuhan, Bali bombings etc). I also apply the same argument to having a functioning merchant marine and a strategic fuel stockpile, and even some form of domestic industrial capability.

This event is a big wake up call about globalisation and just in time supply chains.

While partial Nationalisation makes complete sence in this scenario and most nations have a small stake in their national airline, as a former state Liberal staffer i can tell you that it is not in the LNP genetics to buy into private companies even when the cough has hit the fan. If there is a bailout, it will be some sort of loan guarentee or a derivative of it for QF and/or VA to see out the downturn.

If anything is to be learnt from this crisis, is that alot of airlines have been busy worrying about capacity and market share and have not spent anywhere near the amount of time needed to secure their finanical security for when the good times end.

The other lesson to learn is China is still a third world country that we have a major reliance on for cheap and inferior products. Globalisation done correctly does not mean one country has a stranglehold on low cost manufacturing. In a perfect world this will be the start of a global wake up and the beginning of the end for communist party in China.

 

[Must...Fly!]

I take issue with your statement that airlines have been too distracted by legitimate commercial operations to focus on being able to withstand the end of the good times.

Pandemics are not usually foreseeable.

VA and QF do not exist in a vacuum, but other airlines haven't had the competitive environment to focus on and I don't see them being any more able to withstand this absolute calamity for the industry.

Reality is it's a heavily regulated, commercialised, capital intensive business that by it's very nature is susceptible to shocks such as pandemics, no matter how well prepared.

 

[bulldog88]

Out of interest though, let's say you had a million Velocity points, would you hold steady, or would you transfer some out?

Personally I think Singapore Air has no chance of going bust - they will be saved by the Singapore Govt. But Singapore KF miles expire after 3 years (but can be extended for 6 months for a fee). Tickets are valid for 12 months from issue, so with some effort you can wait 4 - 4.5 years before needing to fly, after you make the transfer.

As I understand Velocity points are held in a separate business (trust?) which is owned by VA (and recently bought back from private equity co-owners which is why VA issued their VAHHA bonds).

So I assume Velocity will keep running even if VA itself collapses ... but points might be difficult to redeem for flights, especially if they close off the KF transfer.

AFAIK the Ansett miles were part of the main Ansett business, so it wasn't easy/possible to save them in the Ansett collapse.

 

[amaroo]

Virgin, Qantas scramble to survive travel changes as bailout talk grows

www.google.com.au

 

[Carrots]

Out of interest though, let's say you had a million Velocity points, would you hold steady, or would you transfer some out?

Simply hold steady for now. Realistically the points will one day end up with KF anyway, but I’m in no rush to shift as per the above re expiry etc.
Obviously it’s a pretty fluid situation so that could well change, but for now I’m not particularly concerned by holding about 500k with VA and similar with QF.