PPRuNe Forums - View Single Post - "Virgin Australia Mk II could launch in as little as three months"
Old 26th Apr 2020, 17:27
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havick
 
Join Date: Apr 2003
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Originally Posted by B772
If anyone would like to follow the fortunes of Virgin over the years I suggest you look at some threads I started and postings I made on others threads. If you do a search for my postings using Virgin or VA you will see I have been negative on many aspects for years. Covid-19 just accelerated the end result. One of the prospective purchasers is looking at an initial operation of just 14 x B737-800 towards the end of the year.

Virgin Atlantic is on the rocks. This morning Richard Branson put the airline on the market after failing to find financial support from Delta and 100 financial institutions. He has now accepted the U.K Government will not provide any funds. The airline may collapse before the end of the month. You will never believe who is assisting Branson with the process. It is Houlihan Lokey. The same mob who is helping the village people. Beware of companies with back of serviette business plans.


The post below is from a thread I started in 2016 titled "Should Virgin be Privatised." We know the Board did consider this in 2018.

"1a sound asleep


I am not confident JB has saved Virgin Australia. He certainly has dug a bigger hole for them to climb out of.

You mentioned a figure of $1B. It appears to me that Virgin Australia is only worth about half its book value if all debts and liabilities are carried forward.
With total assets of $1,586,000,000 and liabilities of $2,300,800,000 the balance sheet is a mess.

With long term debt being 68% of the companies capital and a debt/equity ratio of 256.6% some serious surgery needs to be performed before a serious suitor would be interested.

Whilst it is true Delta purchased the SQ 49% holding in Virgin Atlantic after SQ lost a total of approx. $1B on their foray. Virgin Atlantic is now a shell of its former self having dropped services to Sydney, Tokyo, Vancouver, Mumbai and Cape Town. In addition its UK 'Little Red' domestic airline has closed down.

And yes you are correct; Virgin America is on the chopping block. After a huge airfare sale recently to raise some cash it appears the major partners in the airline (similar to Virgin Australia ) have offered the airline for sale after less than 18 months as a public company. So far Alaska Airlines and Jet Blue have made offers for the airline with an announcement expected as early as next week.

A number of years ago anything to do with Richard Branson was regarded as a 'sideshow'; nothing appears to have changed".
Virgin America hasn’t existed since 2018 when it merged with Alaska.

** Just realized you reposted something from 2016, so disregard.
havick is online now