Virgin Australia Financially Secure? [Now in Voluntary Administration]

[p--and--t]

Think there is plenty of research around, but hard to research something you don't know about..

As in this things original name - novel-coronavirus

this was five years ago...

The next outbreak? We're not ready

In 2014, the world avoided a global outbreak of Ebola, thanks to thousands of selfless health workers -- plus, frankly, some very good luck. In hindsight, we know what we should have done better. So, now's the time, Bill Gates suggests, to put all our good ideas into practice, from scenario...

www.ted.com

 

[HS-TQE]

Related: WA, SA to close borders over coronavirus, Rottnest Island investigated as quarantine zone

Looks like more domestic cuts on both VA and QF's end coming with the states starting to close their borders.

 

[Xizor]

Related: WA, SA to close borders over coronavirus, Rottnest Island investigated as quarantine zone

Looks like more domestic cuts on both VA and QF's end coming with the states starting to close their borders.

Yep, there goes my bonus ANZ Travel adventure card flights with VA in 2 weeks time. Wonder if i'll get anything back. Ah well, first world problems. Looks like even further cuts to VA to come now... could be the nail.

 

[AIRwin]

Looks like even further cuts to VA to come now...

And QF/JQ...

 

[Harthagan]

Well I had to transfer my points across. It may not make a difference in the end but at least I've done what I can lol.

I'm gonna end up with a travel bank in excess of 5k as it seems virgin is intent on turning it's customers into creditors so thay they can continue to pay out salaries for a few more weeks/months. Last thing I need is more exposure than that

 

[AIRwin]

I'm gonna end up with a travel bank in excess of 5k

You should be receiving any credits in excess of $5k in another form:

Travel Bank terms and conditions | Virgin Australia

www.virginaustralia.com

Refer clause 2.4

 

[Must...Fly!]

Two announcements to the ASX this morning.

VAH share price and company information for ASX:VAH

View today’s VAH share price, options, bonds, hybrids and warrants. View announcements, advanced pricing charts, trading status, fundamentals, dividend information, peer analysis and key company information.

www.asx.com.au

1) A downgrade from Moody's
2) An acknowledgement by PS of the government and state border restrictions and an expectation that it will materially impact domestic capacity.

 

[wannabeinvestmentbanker]

Two announcements to the ASX this morning.

VAH share price and company information for ASX:VAH

View today’s VAH share price, options, bonds, hybrids and warrants. View announcements, advanced pricing charts, trading status, fundamentals, dividend information, peer analysis and key company information.

www.asx.com.au

1) A downgrade from Moody's
2) An acknowledgement by PS of the government and state border restrictions and an expectation that it will materially impact domestic capacity.

The ASX release could not have said anything less. I acknowledge it's in the spirit of continuous disclosure at least.

A lot of volume at the open with a small price pop but settling back now at 5.8c.

 

[williamsf1]

Can anyone confirm if Velocity points are still held in trust? ie, the "value" of points is "safe" The previous company structure this was definitely the case, "Velocity Rewards Pty Ltd as trustee of the Loyalty Trust and Velocity Frequent Flyer Pty Ltd " however with all the recent changes in ownership, it is not clear if this is still the case. I tried to search the company, but could not find any recent references to it.

 

[mrmerc500]

Can anyone confirm if Velocity points are still held in trust? ie, the "value" of points is "safe" The previous company structure this was definitely the case, "Velocity Rewards Pty Ltd as trustee of the Loyalty Trust and Velocity Frequent Flyer Pty Ltd " however with all the recent changes in ownership, it is not clear if this is still the case. I tried to search the company, but could not find any recent references to it.

 

[Obi-run Kenobi]

Forgive my ignorance but, even if owned by a separate entity, will the points have any value at all if VA goes belly up?

 

[dajop]

Forgive my ignorance but, even if owned by a separate entity, will the points have any value at all if VA goes belly up?

Not sure about Velocity's ownership structure now, and the impact it has. There is precedence for programs surviving the collapse of the airline that set them up, see link. Although that could be be a very different situation. And to be honest nothing is certain in the new world we are facing now.

Jet Privilege’s frequent flyer programme to be rebranded as Inter Miles – Business Traveller

The programme will offer its 10 million members the opportunity to earn…

www.businesstraveller.com

 

[HS-TQE]

Not to mention in the "worst case" scenario, where the possibility of Velocity being bought by SQ from the "administrators" (Current virus situation nowithstanding) and the VA FF base being 'merged' into the Krisflyer FF program mentioned as one option.

Velocity is one of the primary (if not the primary) reason why SQ is still holding on their VA stake, to gain access to VA's FF base, despite losing plenty from their VA investment over the years.

 

[Must...Fly!]

Well PS isn't taking things lying down.

Virgin Australia asks competition watchdog to investigate Qantas 'campaign' against it

Virgin’s chief executive has complained to the ACCC about comments by Qantas boss Alan Joyce, as airlines are plunged into crisis by the coronavirus outbreak

www.theguardian.com

 

[jase05]

Well PS isn't taking things lying down.

Virgin Australia asks competition watchdog to investigate Qantas 'campaign' against it

Virgin’s chief executive has complained to the ACCC about comments by Qantas boss Alan Joyce, as airlines are plunged into crisis by the coronavirus outbreak

www.theguardian.com

Good on him but the ACCCC are the biggest bunch of toothless tigers in the country.
At this point in time PS and AJ need to put their differences aside and focus on saving the industry even if it means complete co-operation

 

[hydrabyss]

Well PS isn't taking things lying down.

Virgin Australia asks competition watchdog to investigate Qantas 'campaign' against it

Virgin’s chief executive has complained to the ACCC about comments by Qantas boss Alan Joyce, as airlines are plunged into crisis by the coronavirus outbreak

www.theguardian.com

I just read a few articles regarding this issue and if I had little intention of flying Qantas before I have none at all now as long as he is in charge. It does not help he reminds me of someone I used to work for. But on a positive note I no longer work for anyone but myself now days.

I saw something the other night talking about when he asked for money but was told if we help you we have to also help the competition.

 

[p--and--t]

Good on him but the ACCCC are the biggest bunch of toothless tigers in the country.
At this point in time PS and AJ need to put their differences aside and focus on saving the industry even if it means complete co-operation

Altruistically maybe, however I think a few shareholders (AJ's de-facto employer) would have a significantly different opinion to you.

FYI in case you are wondering, don't hold QF shares or VA shares.

 

[amaroo]

I agree with AJ.

 

[pauly7]

At this point in time PS and AJ need to put their differences aside and focus on saving the industry even if it means complete co-operation

I agree, I can see actually see a model where VA and QF are allowed to co-operate to get through this very dark night for them both. For a period of time.

Needs to be some out of the box thinking here.

 

[Must...Fly!]

I agree, I can see actually see a model where VA and QF are allowed to co-operate to get through this very dark night for them both. For a period of time.

Needs to be some out of the box thinking here.

I floated a similar idea toward the beginning of this thread and I do believe that would be the best way forward.

But with Joyce's recent comments and asking his stood down workers to go begging to their local MP...he won't play ball.