Virgin stands down +1000 staff as COVID-19 lockdowns halt travel

jakeseven7

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Hits keep coming for all airlines :(

As previously reported Bain has also reportedly had to inject tens of millions into VA2 to keep it afloat. I wonder if this means they will hang onto VA2 longer to try and make their money back before selling it again?

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Exclusive: Virgin Australia set to stand down over 1000 staff as COVID-19 lockdowns halt travel and expansion plans​



Virgin Australia is poised to announce a fresh wave of stand downs across its workforce as soon as today as the aviation industry struggles with lockdowns and border closures that have slashed travel around the country.

Several industry said the lockdowns could affect more than 1000 staff at the airline.

US private equity group Bain Capital bought Virgin out of administration after it collapsed last year, cut thousands of roles from the airline’s previous total of about 9000 to around 6000 and aggressively reduced destinations and flying schedules in an effort to stabilise the business.

 

jakeseven7

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Apparently some VA2 airframes are being put into deep freeze as well.
 

burmans

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Not good news, though I still hold the view that current lockdowns will speed up vaccination and hence eventually relaxation of travel restrictions.
 
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N860CR

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Anything happened with the remaining parked B 777s?
They’ve been moved on. No longer any VA ownership. I believe four are still sitting in Toowoomba. One has left the country.
 

RAM

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Thanks for that. I hadn't come across any reports of them being sold. You've prompted me not to be so lazy...

Searching just now - well the 4 have been sold but 2 look to be a bit the like our initial Sydney Clayton's Lockdown. Of the 2 actually sold - 1 has now also been flown to Singapore.

2 sold to a leasing company owned by VA. Crystalising tax losses anybody?

So who now owns the four former Virgin Australia 777-300ERs? Two of them, VH-VPF and VH-VPE, are owned by the United States-based UMF Bank. The remaining two 777-300ERs are owned by a Brisbane-based holding company called VB Leaseco Pty Ltd.
Virgin-Australia-777s
VH-VOZ, the only leased Virgin Australia Boeing 777-300ER. Photo: Wilco737 via Flickr

A corporate entity located just down the road from Virgin Australia’s former HQ

VB Leaseco Pty Ltd was in the business of procuring aircraft or aircraft parts and acting as a corporate middleman for Virgin Australia. Unsurprisingly, with a Spring Hill address and a company name that either reminds you of a budget beer or a budget airline, VB Leaseco Pty Ltd was a discrete company within the Virgin Australia corporate structure, but part of the corporate structure nonetheless.
Virgin Australia Holdings Ltd, the listed parent company, owned Virgin Australia Holdings Pty Ltd, which owned a range of companies, including VB Leaseco Pty Ltd. We know this because Virgin Australia’s administrators provided that information to the Federal Court last year.

VB Leaseco was put into administration last year, along with its parent companies. But current Australian company searches show it wasn’t wound up and remains registered and the proud owners of two former Virgin Australia 777-300ERs.






 
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