PPRuNe Forums - View Single Post - Private equity take-over for Virgin Australia?
Old 17th Apr 2020, 07:11
  #8 (permalink)  
krismiler
 
Join Date: Jul 2010
Location: Asia
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They will only jump in once the company is in administration.
Exactly, why move in now and be responsible for all the debt, and the redundancies which have to come ? Once an administrator is appointed, the creditors are put behind a wall, the administrator works out what everyone will get in the event of a winding up and sell off of the assets. Now your proposal goes in for a take over and it only has to be slightly above what the creditors would otherwise get for them to agree to it. You just bought yourself a new airline free from any hangover from the previous company. Next you post out contracts with your terms and conditions to the staff you want to take on.

The potential purchasers won't give out too many details regarding their intentions at this stage incase it affects the price. They could go for a 30-40 B737 domestic only low cost operation (Virgin Blue MK2) or they could envisage a 70-80 sized fleet of B737s to maintain the previously profitable parts of the network. International, if at all limited to NZ, Bali and Fiji. Business class, which the aircraft are already fitted for, akin to the JQ/Scoot/AirAsia offering not trying to compete with QF for the top end of town.

Aircraft leases will be easy to obtain on favourable terms so there's no hurry to commit at this stage.
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