Virgin Blue to shed 400 jobs ....
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Who knows? Maybe this was a long term plan all along.
No one at VB wants to sign the poor T's & C's at VA so from a company perspective...let's wait until we say to crew "you're being made redundant unless you can move to VA or take a pay cut as a E-JET FO" - of course it will force people to succumb to one or the other. I'm not saying it's a good thing, it sucks as$!! But unfortunately, I think it's going to happen.
There have been some good ideas floating around though from other VB crew...maybe a large scale meeting is due...
Stick together all VB crew!
No one at VB wants to sign the poor T's & C's at VA so from a company perspective...let's wait until we say to crew "you're being made redundant unless you can move to VA or take a pay cut as a E-JET FO" - of course it will force people to succumb to one or the other. I'm not saying it's a good thing, it sucks as$!! But unfortunately, I think it's going to happen.
There have been some good ideas floating around though from other VB crew...maybe a large scale meeting is due...
Stick together all VB crew!
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maybe a large scale meeting is due...
During the last EBA negotiations the Feds told everyone that the sky would fall down, everyone would go to jail, it was against the law, the sun would explode, cows wouldn't milk, if anyone dared even talk about such a meeting!
Sadly, the only way to arrange such a meeting would be to attend a weekend social BBQ and piss-up between the mates club of airline management and the "you know who"
I look forward to reading more terse letters and hollow threats from the 1% collectors!
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Who said a large scale meeting would involve the Fed's? Of course it would involve alcohol...every pilot meeting I've ever been to has had a booze up at the end of it.
Now where did I put my red wine....
Now where did I put my red wine....
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As reported by Stephen Creedy in the Australian . . .
Virgin Blue executives to take pay cut and remove five planes
VIRGIN Blue executives will take a pay cut of up to 30 per cent as the airline sheds 400 jobs and removes up to five planes from service by the start of May.
The airline announced today that it planned to cut domestic capacity by 8 per cent by removing five aircraft from operation.
It said the ``prudent interim capacity management plan'' was in response to a continued forecast deterioration in domestic demand.
The reduction in aircraft means Virgin must shed the 400 full-time positions but chief executive Brett Godfrey has told staff involuntary redunancies would be the carrier's ``very last port of call''.
He has called on the airline's general managers to instead reduce staff by redeploying them to other businesses such as international start-up V Australia, leave without pay, job sharing and a recruitment freeze.
``To start the process, our general managers and executive management have unanimously elected to take a pay cut of 20 to 30 per cent of their annual incomes,'' he told staff in a newsletter.
The aircraft will be kept as operational spares until Virgin believes conditions have improved enough to return them to service or the airline can find viable alternative uses.
Mr Godfrey said the airline's strategy would allow it manage through the downturn as well as ``power back up'' quickly when the economy recovered.
``While we are not pessimistic about the the future, we are pragmatic about how this outlook could impact Virgin Blue, particularly in the Australian market, if we do not stay ahead of the curve,'' he said.
Virgin Blue executives to take pay cut and remove five planes
VIRGIN Blue executives will take a pay cut of up to 30 per cent as the airline sheds 400 jobs and removes up to five planes from service by the start of May.
The airline announced today that it planned to cut domestic capacity by 8 per cent by removing five aircraft from operation.
It said the ``prudent interim capacity management plan'' was in response to a continued forecast deterioration in domestic demand.
The reduction in aircraft means Virgin must shed the 400 full-time positions but chief executive Brett Godfrey has told staff involuntary redunancies would be the carrier's ``very last port of call''.
He has called on the airline's general managers to instead reduce staff by redeploying them to other businesses such as international start-up V Australia, leave without pay, job sharing and a recruitment freeze.
``To start the process, our general managers and executive management have unanimously elected to take a pay cut of 20 to 30 per cent of their annual incomes,'' he told staff in a newsletter.
The aircraft will be kept as operational spares until Virgin believes conditions have improved enough to return them to service or the airline can find viable alternative uses.
Mr Godfrey said the airline's strategy would allow it manage through the downturn as well as ``power back up'' quickly when the economy recovered.
``While we are not pessimistic about the the future, we are pragmatic about how this outlook could impact Virgin Blue, particularly in the Australian market, if we do not stay ahead of the curve,'' he said.
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It is always interesting to hear the old conspiracy theories coming out about manipulation of events to reduce conditions. The Mining sector has shed over 50,000 jobs over the last 6 months and I bet that was just so they can rehire them on lower conditions. No the real reason is that the mine is unviable because the commodity prices have tanked along with the world economy. Looks like there are too many seats in the domestic market so reducing capacity would be a smart idea for a board to implement. Unfortunately people will lose their jobs because of it. So what would you learned people do then? Lose your job and go on unemployment or take a V Oz FO/CRFO position to at least have something?
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Pedota - sorry but Steve Creedy is far too close to the institutions these days (VB/QF et al) to offer any objective reporting. His story is so close to the VB prepared release and the accompanying "personalised" covering email that it's scary. (sorry Steve I got one too)
Reality is that VB Execs are in deep sh*t - Godfrey & Co has shot from the hip in more than one ASx statement - esp on the op losses for Y1 & Y2 of VOZ's ops and the propensity for VB to cover it. Sandilands and others (for all their tendancy to look for the tabloid element) have been tracking it all and it's not a good posi for VB.
There's an internal memo today doing the confidential rounds in the Brissie Exec bunker that underscores the reality - VB can't make wages w/c 26/4/09 if the decay continues. Plus VB certainly can't cover the VOZ op losses as reported to the ASX & the ever hopeful (wishful) shareholders.
It's a highly over geared biz that has almost zero NAV (nett asset value) to the point of not even owning the employees uniforms. As for parking 5 x 737's for "operational spares" let's not guild the lily - the lease agreements on the regos indicate otherwise.
Backing the boss, Tanner and the HR flunkies are desperately trying to minimise the damage by soliciting part time LWOP and xfer as many crew as possible to the less than appealing VOZ T&C's - they are bullying the Y gen CC into thinking that they can save VB by sacraficing themselves and playing games with Capt & F/O appointments.
Baseline is that VB needs to become a lean LCC again however those in the Exec suites have their sights set on a higher plane.
That word "pragmatic" continues to be used in VB statements - it may well prove to be prophetic - it is at best a warning to all those considering betting their family, their endorsement and their future on management spin.
PS: The VOZ safety demo video is an absolute emabarassment to any professional pilot (and pax with half a brain) - esp the BS with a pax getting Branson to sign his book - in many ways this underscores the myopic mantra of the VB Exec's and yet again shows they are grasping more foreskin than foresight.
Reality is that VB Execs are in deep sh*t - Godfrey & Co has shot from the hip in more than one ASx statement - esp on the op losses for Y1 & Y2 of VOZ's ops and the propensity for VB to cover it. Sandilands and others (for all their tendancy to look for the tabloid element) have been tracking it all and it's not a good posi for VB.
There's an internal memo today doing the confidential rounds in the Brissie Exec bunker that underscores the reality - VB can't make wages w/c 26/4/09 if the decay continues. Plus VB certainly can't cover the VOZ op losses as reported to the ASX & the ever hopeful (wishful) shareholders.
It's a highly over geared biz that has almost zero NAV (nett asset value) to the point of not even owning the employees uniforms. As for parking 5 x 737's for "operational spares" let's not guild the lily - the lease agreements on the regos indicate otherwise.
Backing the boss, Tanner and the HR flunkies are desperately trying to minimise the damage by soliciting part time LWOP and xfer as many crew as possible to the less than appealing VOZ T&C's - they are bullying the Y gen CC into thinking that they can save VB by sacraficing themselves and playing games with Capt & F/O appointments.
Baseline is that VB needs to become a lean LCC again however those in the Exec suites have their sights set on a higher plane.
That word "pragmatic" continues to be used in VB statements - it may well prove to be prophetic - it is at best a warning to all those considering betting their family, their endorsement and their future on management spin.
PS: The VOZ safety demo video is an absolute emabarassment to any professional pilot (and pax with half a brain) - esp the BS with a pax getting Branson to sign his book - in many ways this underscores the myopic mantra of the VB Exec's and yet again shows they are grasping more foreskin than foresight.
One wouldnt want to hold ones breath to see if Qantas executives follow Virgin Blues example with a 20 to 30% pay cut for senior management. That would require leadership, something that has and continues to be missing at Qantas.
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does anyone know what routes the capacity is being cut from? And exactly what aircraft are involved? 73G? 73H, E90?
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There's an internal memo today doing the confidential rounds in the Brissie Exec bunker that underscores the reality - VB can't make wages w/c 26/4/09 if the decay continues. Plus VB certainly can't cover the VOZ op losses as reported to the ASX & the ever hopeful (wishful) shareholders.
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If what ‘airtag’ says is correct then the CEO is required to report to the ASX asap, otherwise I imagine the director's could be in serious trouble, legally?
But, out of all of this, where is the AFAP? The AFAP took Virgin Pilots to court recently over the VIPA issue and it was supposedly ruled that the AFAP would be the recognized union. So, where are they when jobs are on the line and if what ‘airtag’ says is true about no money to pay wages from w/c 26/4/09 what is the AFAP doing? With other employee groups in other industries, their respective unions have made statements, but nothing has been seen in the media from the AFAP. Even, with respect to this issue, the TWU has made a statement regarding its members. Still, if it keeps going there will be no pilots to pay union fees and the union officials too may find themselves out of a job.
It seems like Ansett all over again with V Australia siphoning VB funds to survive. VB runs two other airlines Pacific Blue and Polynesian Blue. I have travelled regularly on VB and have found 80% or more full on each flight. So, they either have some unprofitable routes or they are propping up one or more of the other airlines. Maybe, they shouldn’t have continued with V Australia? In the end, the one who ends up fighting for survival is VB. Just as happened with Ansett.
But, out of all of this, where is the AFAP? The AFAP took Virgin Pilots to court recently over the VIPA issue and it was supposedly ruled that the AFAP would be the recognized union. So, where are they when jobs are on the line and if what ‘airtag’ says is true about no money to pay wages from w/c 26/4/09 what is the AFAP doing? With other employee groups in other industries, their respective unions have made statements, but nothing has been seen in the media from the AFAP. Even, with respect to this issue, the TWU has made a statement regarding its members. Still, if it keeps going there will be no pilots to pay union fees and the union officials too may find themselves out of a job.
It seems like Ansett all over again with V Australia siphoning VB funds to survive. VB runs two other airlines Pacific Blue and Polynesian Blue. I have travelled regularly on VB and have found 80% or more full on each flight. So, they either have some unprofitable routes or they are propping up one or more of the other airlines. Maybe, they shouldn’t have continued with V Australia? In the end, the one who ends up fighting for survival is VB. Just as happened with Ansett.
Last edited by fence_post; 19th Feb 2009 at 05:24.
I highly doubt that DJ are facing near insolvency. There's still cash coming in from the punters buying tickets, and as far as I can tell a fairly good cash balance. If it weren't so, we would have seen DJ go to the market to get some more cash, like QF has done. Hmmm, maybe QF are going bankrupt? 
DJ go to the market with a share price at 25cents. The amount of shares required to be sold to raise a reasonable, worth while amount would dilute the existing shareholders so greatly it would not be in their interest (as they have already stated).
I think only the accountants and management would have an idea of the companies cash position, that is until they release the papers next week. Hopefully its reasonably good news.
I think only the accountants and management would have an idea of the companies cash position, that is until they release the papers next week. Hopefully its reasonably good news.
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just to clarify - regarding the wages issue I understand from the source that the end of April date in the email relates to funding wages from reserves as opposed to cash flow & profits (which are of course two very different items.) It seems that a similar line was used in a staff communication giving the leaked email some cred.
ASX notification would not be required under such circumstances (esp as they already have painted a bleak picture in the 'pragmatic' statement earlier this week.)
Just a sign of a very highly (over) geared business that is about to wear a massive V OZ debt - hitting some very rough turbulence.
Might expect to see some frantic website promos for seats in the July-Sept period in order to pull the cash in pre June 30.
ASX notification would not be required under such circumstances (esp as they already have painted a bleak picture in the 'pragmatic' statement earlier this week.)
Just a sign of a very highly (over) geared business that is about to wear a massive V OZ debt - hitting some very rough turbulence.
Might expect to see some frantic website promos for seats in the July-Sept period in order to pull the cash in pre June 30.
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Travel insurance
Should I be concerned buying tickets on VB? Maybe check my travel insurance to see if it covers airline collapse. Coming up on another seven year anniversary.
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What is insolvent trading ?
http://www.worrells.net.au/library/i...0Insolvent.pdf
Not quite as simple as some may believe. Cash flow alone may not provide an absolute indicator of solvency. You can bet that VB's legal advisers will be right across (one hopes) the issues involved. The lack of any substantive advice to the ASX would indicate that the company is still trading within the definition of solvency.
I just can't imagine them doing anything that was not legal. The punitive provisions are significant, both on the part of the corporate entity and individual directors.
http://www.worrells.net.au/library/i...0Insolvent.pdf
Not quite as simple as some may believe. Cash flow alone may not provide an absolute indicator of solvency. You can bet that VB's legal advisers will be right across (one hopes) the issues involved. The lack of any substantive advice to the ASX would indicate that the company is still trading within the definition of solvency.
I just can't imagine them doing anything that was not legal. The punitive provisions are significant, both on the part of the corporate entity and individual directors.
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All we can do is wait for the 23rd of Feb when I believe VB will report to the market what is exactly going on. I dont think it will be good, QF and SIA have already posted quite gloomy figures. With VB unable to raise any money from the market what other options do they have? Will they petition the government for a hand out like other sectors have already done.
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It seems that nothing will stop VOZ, they are advertising staff travel specials and plan to use the grand opening of VOZ as a fundraiser for those in the South and North.
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Meanwhile back at "The Village" there have been no redundancies that anyone has been made aware of, just a lot of hot air as usual. Perhaps all this is being done to soften up the market so they don't over react and send VB's share price down even further. I wonder which banks are getting nervous about loans they have with VB.
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It seems that nothing will stop VOZ, they are advertising staff travel specials and plan to use the grand opening of VOZ as a fundraiser for those in the South and North.
--
Meanwhile back at "The Village" there have been no redundancies that anyone has been made aware of, just a lot of hot air as usual. Perhaps all this is being done to soften up the market so they don't over react and send VB's share price down even further. I wonder which banks are getting nervous about loans they have with VB.
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just to clarify - regarding the wages issue I understand from the source that the end of April date in the email relates to funding wages from reserves as opposed to cash flow & profits (which are of course two very different items.) It seems that a similar line was used in a staff communication giving the leaked email some cred.
So excluding their cashflow/profits, you mean to tell me they have lost nearly $600M in 6 months?
Any major depletion in the cash levels would need to be reported to the ASX as would a more than 15% movement in the guidance of their profit/loss fromt heir last announcement.
This smells of scaremongering to me.
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ANSTAR
From 2006 to the last annual return in 2008, total current liabilities nearly doubled. Current assets increased by 1.4.
Cash reserves as at 06/2008 were shown at ~ $ 603 m. I wonder what that is now.
Go figure.
From 2006 to the last annual return in 2008, total current liabilities nearly doubled. Current assets increased by 1.4.
Cash reserves as at 06/2008 were shown at ~ $ 603 m. I wonder what that is now.
Go figure.