Originally Posted by
Mendi Matt
There is another way to look at it. Air NZ was offered a rather large loan recently, to help with their immediate cashflow needs and 'keep the show on the road'. What may not be advertised is the interest rate - well over 8% I was told by an Air NZ mate.....!!! So if the Australian Govt. was fairly confident that VA will survive post Covid-19, this would be an opportunity for them to make money (borrow for 3-4%, or less....lend out at 8%+) and give an important lifeline too.
Which loan do they pay back first? The Australian government loan, or the $7b they owe to creditors already?
Any money to bailout Virgin is equivalent to pissing into the wind.