Virgin Australia Financially Secure? [Now in Voluntary Administration]

[Bagpuss]

Well technically JB himself is home and hosed, nice and comfy having bled VA to death. Probably smoking a cigar in one of his many houses somewhere chilling out

You have to take it with a pinch of salt. He wasn’t kicked out. The company wouldn’t be what it is rightly or wrongly. He had board support and took the company up market.
He didn’t know when to stop spending.
There‘s no such thing as a win-win situation.
Going forward companies have to be more diverse. You need at least two different markets, things aren’t always going to be rosey.

 

[jakeseven7]

Unfortunately JB has joined the board of BNE, sorry all you banana benders

Start the timer for when BNE is run into the ground as well then

 

[flyer89]

SIA is also majority government owned. The average punter would perhaps be surprised at how many airlines around the world are. The ME3 for example.

 

[getluv]

Well this will make it easer now for airlines that has the cash to purchase VA. it is very disappointed that SQ has basically given up on the airline as it was one of the first airlines that brought shares in VA. Just think if SQ had control of VA QF would be shaking

SQ have tried and failed many times. They just took an $18B from the Singapore Government, and didn't have a dime for VA. What does that tell you?

Insurance, credit cards have a wholesaler behind them. I doubt this income covers replacing a tire on an A380.
These scheme are pure marketing / branding.
I think AJ has a lot to worry about. If his comments damaged Virgin which is under ACCC investigation boy oh boy the outcome won’t be pretty.

Actually, not sure what the ACCC can really do. It's taken them over a year to review QF share purchase of Alliance and still no answers on that enquiry.

AJ is well within his rights to voice his opinion that a company with the word Australia in its name, owned by the UAE, Singapore and Chinese Government should support itself.

Even if he gets in trouble. It will be a slap in the wrist while Virgin will be 6 feet under.

 

[cirdan52]

A pair of Deloitte accountants are set to take the keys at Virgin Australia.

Meet Virgin Australia's co-pilots in waiting

A pair of Deloitte accountants are set to take the keys at Virgin Australia.

www.afr.com

 

[Mogul]

I disagree... QF is still earning money from other sources such as Qantas insurance and their points program... Qantas earns more money that way than its flying division for the last few years.. so I think AJ is more safe than JB now

JB has been gone a little while.

VA will still be around in some form or another. It's operational cost base will be significant lower than QF's in a an almost non existant to very soft market into the foreseable future. Business travel will be decimated into the medium term and this where QF makes it $$$$$. Forget international and all those nicely refurbished A380's sitting around collecting dust. QF will be forced to downsize and make some serious decisions in order to survive. All the add on's insurance, etc. are only driven by people's dream of flying for free using points especially to overseas destinations, which won't be freely possible for a number of years I believe.

The Australian government has shown no interest in saving the airlines, they can not now go and bail out QF in the future, the class action against the Government would be huge.

 

[bigbadbyrnes]

he cannot go and bail out QF in the future, the class action against the Government would be huge.

It's not illegal to not break a law, but it may certainly be electorally bad.

 

[jakeseven7]

The Australian government has shown no interest in saving the airlines, they can not now go and bail out QF in the future, the class action against the Government would be huge.

LMAO!!

Funniest post of the day (not sure if you meant it to be but anyway)

Class action against the government if they need support the national carrier lol sure thing

 

[jakeseven7]

It's not illegal to not break a law, but it may certainly be electorally bad.

The public reaction to QF being supported (if required) will be verrrrrrrry different to the indifference / resistance shown by the public to VA being bailed out - for all the reasons listed through the last 2000 posts or so!

 

[p--and--t]

The Australian government has shown no interest in saving the airlines, they can not now go and bail out QF in the future, the class action against the Government would be huge.

 

[hossein_au]

SIA is also majority government owned. The average punter would perhaps be surprised at how many airlines around the world are. The ME3 for example.

And those who are not (e.g. AA, UA) have been "saved" (either by direct injection of cash or through subsidies) by respective governments numerous times.

 

[albatross710]

My 5 cents in the dollar's worth:

VirginAust now has a holiday from Covid period rents (& arrears) and a cap on liabilities up to today.
VirginAust now released from future jet deliveries commitments
VirginAust New Co can negotiate new post-covid employment controls

Deloittes Administrators can get their hourly billings into the $900M of Virgin Aust cash. Happy days as we can expect to see a few happy partners there.

New Co goes forward with new money, reduced cost base and free of debt. New Co can still seek a deal from Qld and NSW governments.

 

[BAM1748]

I also hope if and when Qantas needs help in the future that its met with the same federal response. Fair is fair.

That’s where it’s different, there are federally imposed rules around QF ownership.

I will add the QF board did want it relaxed several years ago but I’m sure they are pleased now there status quo remained.

 

[getluv]

JB has been gone a little while.

VA will still be around in some form or another. It's operational cost base will be significant lower than QF's in a an almost non existant to very soft market into the foreseable future. Business travel will be decimated into the medium term and this where QF makes it $$$$$. Forget international and all those nicely refurbished A380's sitting around collecting dust. QF will be forced to downsize and make some serious decisions in order to survive. All the add on's insurance, etc. are only driven by people's dream of flying for free using points especially to overseas destinations, which won't be freely possible for a number of years I believe.

Scotty from marketing has shown he has no interest in saving the airlines, he can not now go and bail out QF in the future, the class action against the Government would be huge.

QF has diversified enough to be able to take a hit. It owns most of their aircraft outright (unlike VA) so at best it is currently paying parking and maintenance fees. QF also have QFF, which was heads and toes above water compared to Velocity in terms of reach and profitability.

It will also come back to a different environment where some of their competitors, domestically and internationally, have been burnt enough and won't have the capital or leverage to fight too hard.

Airfares will also be high for a while owing to no middle seats and onboard service. I suspect lounge food will be at be prepackaged food, owing to health but also being cheaper for QF. Once you throw a few $9 sale fares on JQ, people's appetite for flying (at least domestically will return). Before you know it, people will be okay with eating packaged food at QC and spending more than they usually did on fares.

 

[Bagpuss]

QF has diversified enough to be able to take a hit. It owns most of their aircraft outright (unlike VA)

Humm a domestic fleet up for renewal, B787’s under security and an A380 fleet with a massive question mark with no resale value.
Plus the talk Of offloading some Jetstar aircraft....

 

[dajop]

And those who are not (e.g. AA, UA) have been "saved" (either by direct injection of cash or through subsidies) by respective governments numerous times.

Crippled Airline Industry to Get $25 Billion Bailout, Part of It as Loans (Published 2020)

Airlines will receive billions of dollars in grants and loans to pay flight attendants, pilots and other employees.

www.nytimes.com

 

[jakeseven7]

Humm a domestic fleet up for renewal, B787’s under security and an A380 fleet with a massive question mark with no resale value.
Plus the talk Of offloading some Jetstar aircraft....

There is no massive rush for either VA or QF to renew en masse their domestic fleets. Both have strong maintenance programs.

 

[Bagpuss]

Once you throw a few $9 sale fares on JQ, people's appetite for flying (at least domestically will return). Before you know it, people will be okay with eating packaged food at QC and spending more than they usually did on fares.

Those sales fares will not be seen for 5 years, if ever.
Forget those sub $200 flights to Bali too.

 

[Bagpuss]

There is no massive rush for either VA or QF to renew en masse their domestic fleets. Both have strong maintenance programs.

Aircraft don‘t last forever. I didn’t say there was a rush. VA’s fleet is statistically younger.

Qantas braces for redundancies from head office restructure

Qantas expects to announce a round of redundancies as part of a head-office restructure, but says it does not yet know how many jobs will be lost at the airline.

www.smh.com.au

But a bigger financial decision is looming as the airline prepares to start retiring its ageing fleet of 75 Boeing 737s from the middle of this decade.

 

[BAM1748]

Hmmm, I think you may be wrong there!

Is that the sound of champagne corks popping over at Aj's office?

One minute you’re saying AJ is popping a celebratory cork but 10 posts earlier youre of the opinion QF is about to be a failed entity.

Not everyone likes QF and you’re obviously one of those.

But QF has a balance sheet X times strother than Virgin with a different ownership structure and has already outlasted the fatal injuries virgin gave itself trying to keep up with QF.