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Old 3rd Apr 2020, 01:50
  #797 (permalink)  
Vindiesel
 
Join Date: Apr 2009
Location: SYD
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Anyone thinking the government will pour $1.4b into a long-term loss-making company is dreaming,

$1.4b for a ~70% stake with market cap less than half that amount in a company with a bloated cost base and a $5b debt book significantly denominated in USD would be one of the greatest misuses of public money in history.

The argument about helping the tourist industry recover is naive, The recovery will be more U shaped than V shaped and there will be more than enough overseas capacity and capability that could be introduced into Australia to assist the tourism recovery - all without the need for throwing good taxpayer money after bad into a debt-laden company. Even in 3 years, this taxpayer money will never be recovered and VAH's debt will still be there.

If VAH's billionaire and state-backed shareholders won't tip money in, then why should Joe Public? What steps is VAH taking to immediately address its cost-base? Has it asked employees to make permanent changes to its cost base? Has it renegotiated leases? Until these changes are seen, I wish you all good luck...
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