Please everyone take a breath.
A few weeks back I said in a different thread how everything has changed permanently. Now it has. Many many people are affected by this and the VA group are just 2% of the total put out in the last month.
The sun will still come up and the way things were are no longer, having lived through and airline shut downs from both sides of the fence and been wiped out, this is going to hurt, but its not all over for everyone.
VA's will be rebirthed as a leaner beast most probably under the Tiger AOC with 737's only VAH will continue in administration as long as the administrator funds are paid and I believe they made application to the high court this morning to have $35M of VA's cash reserves allocated to the administration. VARA will be pumped for cash but its worth nothing except the value of its contracts to run, the A320s are leased and the F100's need refleeting in the next few years, getting more F100's a few years ago was nothing more than kicking the can down the road...… that can has now gone down a drain.
While a lot of people here are pleading for investors because they have vested interests in VA being airborne, there are just as many that have interests in VAH being sunk and the debt never coming back. The key here people is who controls the debt and where is the market.
At this point in time, given there is a $160M+ lifeline from the Govt out there that should be the best indicator that any company cant see enough seats to stay alive...… so where is the market? At this point gone, macroeconomic factors point towards a big recession that will be the likes of SARS and GFC combined, 800,000+ bread winners out of pocket and there is the true picture of discretionary spending.
SRB running about saying "we'll be back & its just the beginning" makes me think he's dropped a bit too much acid while in lockdown, and PS saying we've dropped airfares 37%...…. and without us it will go back up …. yes and rightly bloody so ! because if you had banked some of the funds.... (and paid tax on it....maybe if they had put into the economy as a corporation then they would get help out) then you might not be trying to decide if you could afford the lube that is coming with that pineapple or not.
Either way, when the cab fare to the airport is more than the cost of the flight something is wrong, very wrong and now is where the story concludes.
This is the flush the bowl needed, there will be pain sure, but a fresh lavender smell afterwards and maybe, just maybe some in management will realise that there is no volume because the punters don't have jobs and they will be after yield and people will pay what they should have. Domestic travel in the US is not cheap so what is it here. Do we need 20 flights a day between ports on the J curve?? certainly not now, hopefully not again.
This is the harsh reality of what we face industry wide. But please don't ever think you are alone, and I can tell you right now there are people doing it a lot worse than you are.