Virgin Australia Financially Secure? [Now in Voluntary Administration]

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To be honest - I really hope there is a genuine buyer out there - prefer to have 2 airlines instead of one - to keep the prices down post COVID 19
 
Melburnian1 said:
The next creditors' meeting is likely not to be until 22 August 2020, showing the complexity of the process.
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Complex for sure. But also, for potential investors and creditors alike, delaying decisions as much as possible is the right strategy at this particular point in history. Ideally to see what pans out over the next 1-2 months, by 22 August, there should be a good understanding of whether there is likely to be a substantive recovery in domestic travel - thus worth investing in VA2 - or if not - to take steps to liquidate. At the moment, it's not entirely clear.
 
Keep prices down?. Not sure.

There is not a lot of difference between a monopoly and a duopoly. The truce after the capacity wars have seem domestic prices are very high levels.
Unless Va2 is prepared to do another capacity war, the prices will remain elevated.
If not a capacity war, then a discounting war have seen many corpses still littering the airways.

Depends on what Scurrah comes up with
 
Quickstatus said:
Keep prices down?. Not sure.

There is not a lot of difference between a monopoly and a duopoly. The truce after the capacity wars have seem domestic prices are very high levels.
Unless Va2 is prepared to do another capacity war, the prices will remain elevated.
If not a capacity war, then a discounting war have seen many corpses still littering the airways.

Depends on what Scurrah comes up with
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I think the premise of VA mk 2 would be to divide the pie and have both companies happy to make duopoly profits. Both a capacity and discount war would provoke QF into a response. VA is best to position itself as the QF alternative as some people just don't like the airline for whatever reason and slot in pricing a bit lower than QF.
 
Quickstatus said:
Keep prices down?. Not sure.

There is not a lot of difference between a monopoly and a duopoly. The truce after the capacity wars have seem domestic prices are very high levels.
Unless Va2 is prepared to do another capacity war, the prices will remain elevated.
If not a capacity war, then a discounting war have seen many corpses still littering the airways.

Depends on what Scurrah comes up with
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Hmmmm

I think anyone who regualarly flew coast to coast in 7-across “Business” Class for $2k each way would beg to differ.

Price remained similar, with new discount J buckets yet the seat/personal space increased by a factor of 4 or 5.

Y fares are cheap, not dirt cheap like the capacity wars, but historically very cheap.
 
jamescara said:
Maybe, just maybe, the Administrators are working feverishly to provide AFF'ers with something new and exciting (and maybe controversial?) to discuss at great depth... and then in 8-10 weeks time we'll all be flabbergasted at the final outcome that we did not see coming, except for that one person who made an extremely vague comment about something at some point and will claim it as proof they were correct 😂
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Well we know a prominent AFF contributor, extremely generous with their time (usually!) is very close to the action but had to drop out of this thread in any meaningful way for a few reasons.... I wonder if they are still involved and could be paged back to this thread to give us some insight like they have numerous times - and which has turned out to be very accurate every single time!..... I'm a bit reluctant to ask as might be nagging.... 😂 😂
 
jamescara said:
except for that one person who made an extremely vague comment about something at some point and will claim it as proof they were correct 😂
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“Blue Horseshoe Loves Anacott Steel”

Seriously, I hope JBU get up, JBU Mint is great value for long flights.
 
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What ever happens in the wash, anyone expecting cheaper prices is slightly delusional.

I predict, by absolute necessity, both VA-2 and QF will be leaner and meaner and many of the frills FF have come to expect will be trimmed or eliminated to survive. But at the same time, volumes will be significantly down and their balance sheets badly damaged. In a reformed duopoly they will be seeking to repair their balance sheets in an environment of possibly 50% of previous patronage for up to 24 months.

That does not equate to cheaper prices in any real world.
 
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No Ade the company is in administration with liabilities several billion dollars more than the assets. The shares are worthless and various creditors will get a fraction of their debt paid when the business is sold If a buyer is found in the next couple of months. There were lots of mistakes made financially but I did enjoy the A330 business class which may disappear if planes get reclaimed by the lessors.
 
cove said:
No Ade the company is in administration with liabilities several billion dollars more than the assets. The shares are worthless and various creditors will get a fraction of their debt paid when the business is sold If a buyer is found in the next couple of months. There were lots of mistakes made financially but I did enjoy the A330 business class which may disappear if planes get reclaimed by the lessors.
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I would not be surprised if VA2 was skimmed right back to 737 only, all other types junked.
 
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737s are not a favourite for us in Perth To fly to Sydney so I hope the A330s stay in the new business.
 
cove said:
737s are not a favourite for us in Perth To fly to Sydney so I hope the A330s stay in the new business.
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Seriously brace yourself then....

In other news VA administrators trying to stop 4 aircraft in maintenance in US being seized:

Virgin Australia launches US legal action to protect aircraft from being seized | Virgin Australia | The Guardian

Move comes as administrators tell a creditors meeting in Australia they hope to sell the airline by the end of June
amp.theguardian.com amp.theguardian.com
 
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