Maxter - have you not kept up on current events?
They just made a successful, legally binding bid.
It is comments like yours why I barely comment on this forum. I should not have wasted brain power trying to educate you and your other fellow pessimistic comrades what just happened. 🙄
Virgin Australia is set to be resurrected by US private equity firm Bain Capital into a leaner airline with a broader range of fares to suit economy travellers.
The Boston-based company was confirmed as the winning bidder for the debt-riddled airline on Friday, after rival Cyrus Cap*ital Partners pulled out citing a “lack of engagement” by administrator Deloitte.
Under the vision of Bain’s Australian chief executive, Mike Murphy, and Virgin Australia management, the airline will retain* the modest business-class cabin on its Boeing 737s but provide the majority of passengers in economy with more options.
These will include paying extra for more legroom or a preferre*d window seat, or less for the bare basics of a seat and carry-on luggage.
Technology will be upgraded to improve the customer experience from booking to check-in, and Velocity frequent flyer points will tick over at every opportunity, with Bain envisioning greater engagement between the airline and its 10-million-member loyalty program.
Although it will still be possible to visit a lounge before boarding for eligible travellers, Bain wants to do away with the exclusive domain of VIPs known as The Club.
There would also be no trying to persuade passengers to board new Boeing 737 Max aircraft, which remained grounded after two fatal crashes.
Mr Murphy indicated the curren*t order with Boeing for 48 new Max 8 and 10 aeroplanes would be torn up as part of the administrati*on process.
“The opportunity has to be taken to match fleet size to custom*er demand,” he said.
Bain is expected to waste no time implementing its plan, despite the sale of Virgin Australia still being reliant on an August 22 creditors’ meeting.
As well as providing upfront financ*e in excess of $100m, the cashed-up company will make a further capital injection in the vicinity of $1bn to help the airline rebuild post-COVID.
With a fleet of between 60 and 70 single-aisle Boeing 737s, Bain’s Virgin Australia will service major domestic routes and a range of regional centres.
Mr Murphy suggested *opera*tions were likely to be limited to 40-50 aircraft at the outset, to maintain a high level of reliability.
“We’re very keen to make sure we retain a healthy buffer of aircraft above consumer demand,” he said. “Demand bounces back pretty quickly, and we want to have capacity to turn back on.”
In addition to fewer aircraft, Virgin 2.0 would have a significantly reduced workforce of 5000-6000 employees, a little more than half of the pre-coronavirus number.
The majority of those would be based in Brisbane, under a $200m deal struck with the Queensland government, which would also deliver the state a “strategic equity stake”.
“Queensland is the home of aviation in Australia, and we are thrilled that our investment, a mix of equity and economic incentiv*es, has helped to secure that into the future,” Treasurer Cameron Dick said.
Unions that had previously backed Cyrus indicated they were more than willing to work with Bain, after Mr Murphy reached out to them. Flight Attendants Association of Australia secretary Teri O’Toole said the FAAA was keen to engage with Bain on behal*f of members.
The retention of the Virgin brand was another key element of Bain’s bid, ensuring the support of Virgin Group chief executive Josh Bayliss. Despite refusing to “take sides” through the administration process, he expressed his satisfaction with the result.
“Time is now of the utmost importance*, and we cannot afford delay in getting the company back in the air for the benefit of its customers, its employees and the wider Australian economy,” said Mr Bayliss.