Originally Posted by
Arctaurus
Can't see any government investment - One of Scurrah's remaining options would be to position Virgin back to it's roots as a true loco with a single aircraft type only (B737) with a reduced fleet size. Get rid of VARA which has probably got some value in the west.
The problem is no private investor has come forward to date, the stakeholders are clearly not interested, so it's a matter of trying to reduce outgoings to the point where there is enough cash going forward beyond COVID. That's a very tricky exercise as the timing of the end of COVID restrictions is unknown, plus the recovery time back to a more "normal" market could take years.
Reverting back to the LCC option using the owned 737 fleet is probably the more ideal option, via filing Voluntary Administration by calling in the administrators and relieving the shareholders of their requirements.
While the 'shareholders' may not be happy for 'losing control' of VA through administrators being called in, it may be better for VA (or a post-administration successor, whatever they call the post-administration airline, in the long run).
For SIA, Etihad, HNA, et al. If I were any of that lot, I'd be ensuring that VA wasn't trading while 'insolvent', as they'd be in trouble otherwise if they were (and face possible bans from managing a company in Australia if they were to invest in any Australian based company in the future).
If VA were found to be trading while 'insolvent', it'll add to the numerous Australian failures for the "so-called messiah" SIA (and would be a big setback for SQ 'trying to tap' into the Australian domestic market). SIA already has a trail of investment failures in Australia through Air New Zealand/Ansett and Tiger Airways Australia.