Virgin Australia Financially Secure? [Now in Voluntary Administration]

[BNEFlyer]

The government is unhappy with the administrators. You may recall back in March the Government demanded a market solution... As predicted they are now trying to pick winners from the market solution and are “annoyed” that BGH was excluded from a market led process.

Matt Canavan whinging that some regional ports will lose service. You can’t expect a recapitalisated VA to continue to do what the old VA did - lose money hand over fist!

Talk about not knowing what you want. Jesus wept.
(The Australian)

Like most people, the administrators probably won't take any notice of anything Matt Canavan says.

 

[antycbr]

Like most people, the administrators probably won't take any notice of anything Matt Canavan says.

Not so much Matt Canavan but the senior government ministers quoted at the start of the article. Canavan isn’t a minister any more.

I suspect this is a problem for them now as the Gov will be looking at a QF bailout with the shutdown of INT continuing.

This would have been far easier with a BGH bid as they would be helping out two “little Aussie battler” airlines. Now the gov is politically boxed in as they have said they won’t bail out foreign owners. Unless they are Rex.

 

[jakeseven7]

Not so much Matt Canavan but the senior government ministers quoted at the start of the article. Canavan isn’t a minister any more.

I suspect this is a problem for them now as the Gov will be looking at a QF bailout with the shutdown of INT continuing.

This would have been far easier with a BGH bid as they would be helping out two “little Aussie battler” airlines. Now the gov is politically boxed in as they have said they won’t bail out foreign owners. Unless they are Rex.

Honestly, I read it just as a couple of members are doing the token 'my electorate may suffer' blah blah thing that ALWAYS happens so they can say they 'stuck up for their electorate'. And Mat Canavan is just irrelevant these days anyway. Fed Gov hasn't budged from their position on VA1 and there is no public drive for them to - people don't really care which US PE firm buys them, with what partners.

Everyone know if QF needs assistance they will get it, they are the national carrier and are subject to different and restrictive capital structure rules for the 'privilege'.

They are far too big and strategically critical for our country to fail - or even 'suffer' too badly. And they are a extremely well run business, unlike the former VA1 which was a basket case with deep pocketed foreign and foreign state backed owners that elected not to save the company. The situation and optics would be COMPLETELY different.

My bet and I'll put money down : I would suspect if QF needed it, they would probably get either a 'targeted' Gov support package for example that supported QFi specifically, and/or perhaps once VA2 is up and running, (recapitalised by Wall St) - the Feds might come in with a broader industry package for both QF and VA2 - of which QF would get the most $ on absolute terms being the far bigger carrier, but split proportionally with VA2.

The Feds just didn't want to pour money down the drain after VA1 that's all, it would have been a complete waste of taxpayers money. VA2, recapitalised and being supported along with QF also being supported is a different situation.

 

[jakeseven7]

Appears Cyrus has won over a couple of the unions... wonder what they have promised them.... Hope they haven't given too much away so they aren't hamstrung later when they need to 'streamline'... Although if they put a wrecking ball through VA1's head offices, I suspect the unions won't really care as their members would be mostly operational.

Appears Cyrus may involve Macquarie Group as well, bastions of repsonsible investing in Australia What an interesting group of partners that are coming together. Now we just need Branson and his bikini models for the launch of VA2 and we are set

Cyrus secures key union backing for Virgin bid

FAAA secretary Teri O’Toole said, “Cyrus are not dipping their toes in aviation, they actually know what they’re doing and they’re taking this on with eyes open.”

australianaviation.com.au

 

[Melburnian1]

Appears Cyrus has won over a couple of the unions... wonder what they have promised them.... Hope they haven't given too much away so they aren't hamstrung later when they need to 'streamline'... Although if they put a wrecking ball through VA1's head offices, I suspect the unions won't really care as their members would be mostly operational....

An oral contract is no contract. While I don't believe we'll see a 'new VA', if we did, let's hope the bidders haven't put any promises in writing.

The unions ought butt out. It's for management to decide, in any sector, how many staff there'll be and under what conditions.

 

[antycbr]

Now we just need Branson and his bikini models for the launch of VA2 and we are set

He'll have to come for a fortnight this time...

 

[antycbr]

An oral contract is no contract. While I don't believe we'll see a 'new VA', if we did, let's hope the bidders haven't put any promises in writing.

The unions ought butt out. It's for management to decide, in any sector, how many staff there'll be and under what conditions.

Its a balancing act - if the unions veto it *all* of the staff lose their jobs. Hopefully they realise that the new VA can't be the old VA.

 

[woodborer]

An oral contract is no contract. While I don't believe we'll see a 'new VA', if we did, let's hope the bidders haven't put any promises in writing.

The unions ought butt out. It's for management to decide, in any sector, how many staff there'll be and under what conditions.

Well, the unions represent the workers, who by number, are a very large group of creditors. As such their vote counts in the administration proceedings.

 

[Melburnian1]

Well, the unions represent the workers, who by number, are a very large group of creditors. As such their vote counts in the administration proceedings.

Many "join" unions because they are forced to by strong arm tactics.

 

[jakeseven7]

Virgin hopeful worker-friendly? UK pensioners might disagree


Private equity fund Cyrus Capital appears the front-runner to buy Virgin Australia. Ahead of Monday's closure of bids, it's secured the support of two of Virgin's crucial unions, impressing with its aviation experience and seemingly'worker-friendly'credentials.

Britain’s largest regional airline, Flybe, fell into administration on March 5 after its shareholders, the largest of which was Cyrus with a 40 per cent stake, refused to keep funding it through the lockdowns.

The consortium promised to inject £100 million into the airline to turn it around. But less than a year later, the consortium turned off the funding tap and begged the British government for a loan, which was not forthcoming.


Full story:

Cyrus worker-friendly? UK pensioners might disagree

Two unions have backed Cyrus Capital's bid for Virgin Australia. This might shock employees of its last aviation investment.

www.afr.com

 

[TheInsider]

Many "join" unions because they are forced to by strong arm tactics.

What rubbish.

 

[jakeseven7]

Bain still fighting, better funded than Cyrus


Bain Capital has stood by its vision for Virgin Australia as union support for the private equity outfit's bid for the distressed airline appears to wither, downplaying the scope of the criticism and emphasising a desire to "maximise employment" in a mid-market air service offering.

Two unions representing about a third of the distressed airline's 9000 staff are worried Bain would approach the workforce in a similarly aggressive manner to that of Qantas, with former Jetstar boss Jayne Hrdlicka heavily involved and positioned for a leadership role if the bid is successful.

Asked whether his firm could still submit a credible bid if any more support from the union bloc were lost, Bain managing director Mike Murphy said: "We fully intend to launch a bid on Monday."

"Two unions, as you know, have made some comments. Many other unions we are working with constructively," he said.

Bain Capital stands by its Virgin vision after union criticism

Any offer for the airline, which fell into administration owing nearly $7 billion in late April, will need the support of the workforce to get over the line.

www.afr.com

 

[Carrots]

"We are trying hard to understand what their objectives and goals are, and I think they are very aligned with ours."

A union and private equity having aligned goals - perhaps making money is an aligned goal but the journey will be vastly different!

 

[woodborer]

Many "join" unions because they are forced to by strong arm tactics.

Regardless, it is the union reps that are on the COI. Ultimately, the unions are representing the workers, and their votes will be informed by the unions positions.
Can't really expect all 9,000 members to delve into all the details of the offers themselves.

 

[desafinado74]

I might have mentioned this before, but as a long time and current A2 Milk shareholder, i don't want Jayne to be anywhere near a company ! I really hope Cyrus will beat out Bain.

 

[Melburnian1]

I might have mentioned this before, but as a long term and current A2 Milk shareholder, i don't want Jayne to be anywhere near a company ! I really hope Cyrus will beat Bain.

Out of interest, given what from media reports seemed to be the controversy she had in her time at A2 Milk, why does Bain apparently think highly of her?

 

[I love to travel]

Do we know when the creditors vote is? If Macquarie are involved need to think about whether I want to keep their shares

 

[Melburnian1]

Do we know when the creditors vote is? If Macquarie are involved need to think about whether I want to keep their shares

22 August 2020.

 

[Mr Pumblechook]

Many "join" unions because they are forced to by strong arm tactics.

The unions ought butt out. It's for management to decide, in any sector, how many staff there'll be and under what conditions.

The workers are only banding together because of devious means, and they have no right to question any aspect of the job that they'll be lucky to receive if I so chose, even if they're legally entitled to be a part of the process... Thanks for reminding me why it was so important to join my union!

 

[BAM1748]

Appears Cyrus has won over a couple of the unions... wonder what they have promised them.... Hope they haven't given too much away so they aren't hamstrung later when they need to 'streamline'... Although if they put a wrecking ball through VA1's head offices, I suspect the unions won't really care as their members would be mostly operational.

Cyrus secures key union backing for Virgin bid

FAAA secretary Teri O’Toole said, “Cyrus are not dipping their toes in aviation, they actually know what they’re doing and they’re taking this on with eyes open.”

australianaviation.com.au

They likely haven't promised the unions anything or given away anything, just sat down at the table and talked about a plan. Something Bain is not known for.

Post automatically merged: Jun 19, 2020