Virgin Australia Financially Secure? [Now in Voluntary Administration]

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For those without paywall access, the crux of the article is:

"It is not our plan to take a stake in an airline," Mr Cormann told the ABC. "But let me also say that on the other side of all of this, we are committed to ensuring that through our policy settings and the like that on the other side, that we have two competitive airlines."
Hmm. Maybe they have enough in reserve to see this through if they can temporarily cut enough costs, or they can offload assets, or the government is hoping one of their owners will step up.
 
I think the relaity is that Virgin would go into Voluntery Administration. This would then allow them offload legacy contracts and reduce leased aircraft. The company would liekly rise up from the ashes, probably as a new airline possibility without the name Virgin.
This is what I'm thinking too. A new player will use the good stuff but not the debt
 
possibility without the name Virgin.

That alone could save $10m/year, if earlier reports of $100m of royalty payments to Branson for use of the Virgin brand over a ten year period are true.
 
If I were the administrator, I'd also ensure none of the current lot (Etihad, Singapore Airlines, HNA, Nanshan, etc) have a majority involvement (if at all) in the setup of a new carrier, should VA file voluntary administration.
EY and HNA are broke and shouldn't be involved period, whilst SQ at most should be reduced to a minority stake (if any at all)

All of the current VA shareholders had their chance at the Australian market (3 goes in SQ's case) and failed dismally.
 
This is what I'm thinking too. A new player will use the good stuff but not the debt
Agree with you 100%
The issue with funding Virgini is where does the money go? aircraft lease payments to then just exit leases, servicing unsecured debt in USD etc. etc.
 
Maybe they called the New Airline,
Ansett Australia

Or "Phoenix Airlines"

Do we start a logo design competition? too soon? :)

In all fairness I hope VA can find a way through to the other side and staff can return to work.
 
Or "Phoenix Airlines"

Do we start a logo design competition? too soon? :)

I have sent my designer bill to Scurrah for a mealy $200,000. Corporate logo work is usually $250,000 but these are tough times. :cool:

I send one to Alan Joyce for the new Dying Kangaroo logo - have not heard back.

Fwm1fXH.jpg
 
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Nah. Go with East-West.
Hubs on the East coast and in PER.
Get a fleet of little Fokkers (when QQ go into administration) and away they go.

There might even be a good looking logo which pops up on here occasionally! 😛
 
ASIC is being brought into the fight.

ASIC on Tuesday told The Sydney Morning Herald and The Age it had been in contact with Virgin to make inquiries about the allegations but declined to comment any further. Virgin confirmed it had been contacted by ASIC on the matter and "have provided them with information as requested".

Virgin chief executive Paul Scurrah first raised the allegations about Qantas along with a series of other concerns in a letter to the competition regulator the Australian Competition and Consumer Commission (ACCC) on March 22.

"We have received reports of Qantas briefing journalists on the false pretense that Virgin Australia cash reserves are running out within days and that Virgin Australia has appointed administrators," Mr Scurrah wrote to the ACCC. "We are gathering together a range of examples of this conduct to send to you.

Sources said ASIC was considering whether Qantas had breached sections 1041E and 1041F of the Corporations Act, which says a person must not make statements if they are false or materially misleading and are likely to induce others to trade in shares or that influence a company's share price.


With the media coverage combined with noise from the tourism sector, along with unions and the opposition support for the loan plus the smell this could be Ansett Mk3, I can't see a way the gov decides against granting the loan. The question will be what does QF get?
 
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Seeing the airline is going down the toilet the ''joke'' is on them.

As if the existing staff did not have more pressing things to focus on right now. o_O
 
Seeing the airline is going down the toilet the ''joke'' is on them.

As if the existing staff did not have more pressing things to focus on right now. o_O
How is the joke on them or am I missing something?
They are simply donating all their left over toilet rolls to communities that need them.
 
ASIC is being brought into the fight.

ASIC on Tuesday told The Sydney Morning Herald and The Age it had been in contact with Virgin to make inquiries about the allegations but declined to comment any further. Virgin confirmed it had been contacted by ASIC on the matter and "have provided them with information as requested".

Virgin chief executive Paul Scurrah first raised the allegations about Qantas along with a series of other concerns in a letter to the competition regulator the Australian Competition and Consumer Commission (ACCC) on March 22.

"We have received reports of Qantas briefing journalists on the false pretense that Virgin Australia cash reserves are running out within days and that Virgin Australia has appointed administrators," Mr Scurrah wrote to the ACCC. "We are gathering together a range of examples of this conduct to send to you.

Sources said ASIC was considering whether Qantas had breached sections 1041E and 1041F of the Corporations Act, which says a person must not make statements if they are false or materially misleading and are likely to induce others to trade in shares or that influence a company's share price.


With the media coverage combined with noise from the tourism sector, along with unions and the opposition support for the loan plus the smell this could be Ansett Mk3, I can't see a way the gov decides against granting the loan. The question will be what does QF get?

Good. Hope they get the proverbial kitchen sink thrown at them, the conduct of Qantas at an executive level has been disgraceful and the board is complicit in not pulling the executives in to line.



Seeing the airline is going down the toilet the ''joke'' is on them.

As if the existing staff did not have more pressing things to focus on right now. o_O
What a nasty, nasty thing to say.

Perhaps you work in PR for Qantas.

Well done Virgin Australia on a fantastic initiative.
 
Seeing the airline is going down the toilet the ''joke'' is on them.

As if the existing staff did not have more pressing things to focus on right now. o_O

What an incredibly poor taste comment.

With their fleet grounded and government about to pickup a minimum wage for their stood down staff, this is a very a constructive use of (probably underutilised) staff time.
 
Good. Hope they get the proverbial kitchen sink thrown at them, the conduct of Qantas at an executive level has been disgraceful and the board is complicit in not pulling the executives in to line.

How about we wait until the, at present, unproven allegations are fully investigated before we rush to the town square to organise a lynching.
 
Oh why not just go all out? :p

Compass-Airlines-Airbus-A300B4-605R-at-Adelaide-Daniel-Tanner-Airliners-Net.jpg
I am still both old and young enough to remember Compass. If my memory serves me correctly you could once get 2 for 1 seat prices. Seemed like a good idea at the time.

Does anyone have pics of that J only Ozjet?
 
How about we wait until the, at present, unproven allegations are fully investigated before we rush to the town square to organise a lynching.
Fair enough, I suppose I should qualify by saying if the allegations are true and the evidence Virgin has is proven to be accurate, then throw the kitchen sink at them.
 
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