Virgin Australia to be sold to Bain Capital

[AIRwin]

Velocity Air – Commercial Air Conditioning Specialists in Sydney

 

[Ansett]

And what would be the cost of rebranding in terms of aircraft Livery, uniforms, marketing etc.

Surely the Virgin Brand has some value to it especially when you come to sell the airline at a later date.

For customers it gives the impression of a larger airline and confidence in a brand especially European/American based customers.

 

[dajop]

For customers it gives the impression of a larger airline and confidence in a brand especially European/American based customers.

Yes, otherwise theyd all be flying on Quantas instead.

I'd assume most of the value of the band is not with European or American customers (it could probably be called Koala Air, for all most of them would care), but instead in the Australian market. The airline has almost always been commonly referred to as Virgin, whether the name incorporated Blue or Australia (most people would ask "are you flying Qantas or Virgin?" - not "are you flying Qantas or Virgin Australia?". Bain would have $$ value on this in their negotiations of royalties with Sir RB.

 

[jakeseven7]

Velocity Air – Commercial Air Conditioning Specialists in Sydney

Clearly a better run more profitable business than VA

 

[moa999]

Surely the Virgin Brand has some value to it especially when you come to sell the airline at a later date.

Some value, but offset by whatever annual fee Branson wants (and historically it was a %ge revenue, not profit).
Also the risk of having your brand attached to an individual in this current era.

 

[melb78]

And atm where Bain is only offering 5% and Sir rich is wanting 10%. who know if sir rich does not get his way the airline will no doubt change the name.

 

[HappyFlyerFamily]

And atm where Bain is only offering 5% and Sir rich is wanting 10%. who know if sir rich does not get his way the airline will no doubt change the name.

I think the royalties income stream might also have a part to play. It’s also not clear whether even Bain needs the extra capital investment or is it instead of a royalties stream.

An earlier ‘speculative’ report was indicating it was to be a capital investment separate to the royalties agreement, but as all private equity matters things are now even more opaque, even how much was Queensland‘s stake and the percentage equity it yields, and the debt facility proportion.

 

[jakeseven7]

Some value, but offset by whatever annual fee Branson wants (and historically it was a %ge revenue, not profit).
Also the risk of having your brand attached to an individual in this current era.

Should make it a % of profit this time around might make him focus more on the actual sustainability of VA2 rather than flashy PR stunts that do sweet nothing

 

[antycbr]

Should make it a % of profit this time around might make him focus more on the actual sustainability of VA2 rather than flashy PR stunts that do sweet nothing

Most of the PR stunts were at the behest of the Australian CEO/MD at the time (Godfrey/Borghetti) and generally related to launching a route.

But I agree a percent of profit would be the best way forward.

 

[BAM1748]

Should make it a % of profit this time around might make him focus more on the actual sustainability of VA2 rather than flashy PR stunts that do sweet nothing

Making anything a % of profit means nil. Any decent Finance Dept will come up with zero profit each year.

If I was Dickie, I'd be going for a fee. No reason not to have both in the deal of course.

 

[ag4647]

Pretty sure the only people who don’t want Virgin branding are limited to this forum

 

[Notyourbag]

Can someone please share the key points from the article of Virgin staff calling in sick after getting business class passengers abusing them after serving them 2 minute noodles.

 

[Ansett]

Try this

Virgin slammed for serving two-minute noodles in business class

Embattled airline Virgin Australia is running so low on supplies it's been serving two-minute noodles to business class passengers.

www.dailymail.co.uk

 

[esquire]

‘“Re-imagined” business class meals’... looks like they are starting from a low base then! Suggest they get Coles delivery with some $5 sandwiches. Wonder if the catering suppliers don’t want to deal with VA 2.0 just yet?

 

[dajop]

‘“Re-imagined” business class meals’... looks like they are starting from a low base then!

Would anyone be surprised if Bain simply re-imagine business class meals in a very American way? i.e.
- No food service on flights less than 300* miles
- Snack service on flights from 300-600* miles
- Lite bites or meals (depending on time of day) on flights >600* miles

(*or choose whatever distance you see fit)

 

[jakeseven7]

Try this

Virgin slammed for serving two-minute noodles in business class

Embattled airline Virgin Australia is running so low on supplies it's been serving two-minute noodles to business class passengers.

www.dailymail.co.uk

I thought @Notyourbag was actually joking..... and then I wasn't sure to believe the Daily Mail - but I just heard on radio and see it is in the Australian as well so appears to be true.

Wow.

Is this what the new positioning of 'value' carrier means? Or are their new cheques just bouncing?

 

[HS-TQE]

Surely wouldn't meet the standards of being a full member of a Global Alliance, let alone afford the cost of joining one (or having the members approve the application).

It is assumed that VA will stay out of Alliances for the foreseeable future under Bain's ownership, although at most that business service might meet the cheaper "Connect(-ing Partners)" levels of the global Alliances.

Otherwise the "Value Alliance" might be of their level with the J-class LCC standards usually met on the medium/long-haul arms of those LCCs.

 

[melb78]

as what the story says the spokesperson from VA its its due to covid so the staff don't need to have to much contact with guest

 

[dajop]

Surely wouldn't meet the standards of being a full member of a Global Alliance, let alone afford the cost of joining one (or having the members approve the application).

Whilst I agree that VA is unlikely to join an alliance the standard of products in premium classes varies widely within alliances.

I don’t think there is a single standard. I’ve been served up a single cookie (admittedly reheated) on. 3 hr flight in F on AA. Short flights within the US don’t automatically get meals (or they never used to). NZ operate nearly all domestic flights and a portion of trans Tasman without business class cabins. In Europe you get an economy seat with centre blocked as business class.

For SAS, a star alliance member, see below what you are booked into intra-Europe on a business class ticket. I think VA could almost getaway with handing out two minute noodles and some packaged snacks and be within alliance rules - its the local market competition that would make it difficult.

This Is What Passes For Business Class On A Three Hour SAS Flight… - Live and Let's Fly

My Sas Plus Business Class warning. Be warned that SAS Plus is not a real business class product, but a hybrid between economy and business class.

liveandletsfly.com

 

[jakeseven7]

Otherwise the "Value Alliance" might be of their level with the J-class LCC standards usually met on the medium/long-haul arms of those LCCs.

Air Asia franchises could be a good partner then? Feels in line with their new offering.
Air Asia has got good Asia coverage.
And perhaps in the US Frontier or Jet Blue?