PPRuNe Forums - View Single Post - Government Loan to Virgin Australia
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Old 2nd Apr 2020, 05:26
  #8 (permalink)  
chance
 
Join Date: Nov 2008
Location: australia
Posts: 74
Originally Posted by The Bullwinkle View Post
Absolutely correct!
If VA is going to go broke, call in the administrators now and give the employees their full entitlements rather than just sit around and wait until the cash is gone and there's nothing for anyone!
If VA isn't going to go broke, then tell us what the situation truly is and give us belief that the company will survive.
Why no Government Loan? Its majority foreign owned. Etihad 21%, Singapore Airlines 20%, Nanshan 19%, HNA Holdings (Hainan) 19% , Virgin Group (Branson) 10.4% with less than 10% owned by a raft of minor shareholders from Australia. So Government will have trouble bailing it out because it a foreign owned entity given in contrast to Qantas that is a majority Australian owned company by a slim margin as the Qantas Sale Act prevents foreign ownership by majority share holding.
If they have no hope of a line of credit from somewhere then they will burn the cash and they don't have tons of assets to borrow against as Qantas was able to do by taking a loan with the Qantas owned B787 fleet as security. A horrible situation but better to shut now and call in the Administrators and then pay out the 10,000 employees their entitlements if there is no chance of a buyer.
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