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VA pilots worried about employment 2021

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VA pilots worried about employment 2021

Old 3rd Apr 2020, 00:05
  #801 (permalink)  
 
Join Date: Apr 2010
Location: Asia
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Pilot Remuneration cuts is just a drop in the ocean. It wouldnít make a lot of difference to save the company from collapse. The majority of the company is not being paid currently anyway. Itís all the other costs that continue to roll month after month.

The issues at the present time are aircraft leases, engineering, fees, contracts, property, redundancy payouts.

A330 leases at $1m a month, times such and such many months, the numbers grow very fast.
wheels_down is offline  
Old 3rd Apr 2020, 00:12
  #802 (permalink)  
 
Join Date: Mar 2006
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The issues at the present time are aircraft leases, engineering, fees, contracts, property, redundancy payouts.
In the absence of funding from any last resort lenders, that's why the company needs to be put into administration now, particularly to preserve employee payouts.

The silence from Scurrah is deafening.
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Old 3rd Apr 2020, 00:20
  #803 (permalink)  
 
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Originally Posted by Des Dimona View Post
In the absence of funding from any last resort lenders, that's why the company needs to be put into administration now, particularly to preserve employee payouts.

The silence from Scurrah is deafening.
One would just hope silence equals a work in progress on some form of deal from somewhere/someone.
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Old 3rd Apr 2020, 02:38
  #804 (permalink)  
 
Join Date: Aug 2005
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Originally Posted by Des Dimona View Post
The silence from Scurrah is deafening.
He was on ABC Radio's AM program this morning.

He basically states that the other owner-airlines have been approached but their owners are in the same predicament, thus cannot afford to support Virgin.
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Old 3rd Apr 2020, 02:50
  #805 (permalink)  
 
Join Date: Apr 2009
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Anyone thinking the government will pour $1.4b into a long-term loss-making company is dreaming,

$1.4b for a ~70% stake with market cap less than half that amount in a company with a bloated cost base and a $5b debt book significantly denominated in USD would be one of the greatest misuses of public money in history.

The argument about helping the tourist industry recover is naive, The recovery will be more U shaped than V shaped and there will be more than enough overseas capacity and capability that could be introduced into Australia to assist the tourism recovery - all without the need for throwing good taxpayer money after bad into a debt-laden company. Even in 3 years, this taxpayer money will never be recovered and VAH's debt will still be there.

If VAH's billionaire and state-backed shareholders won't tip money in, then why should Joe Public? What steps is VAH taking to immediately address its cost-base? Has it asked employees to make permanent changes to its cost base? Has it renegotiated leases? Until these changes are seen, I wish you all good luck...
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Old 3rd Apr 2020, 02:50
  #806 (permalink)  
 
Join Date: Jan 2010
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They know Australian government over a barrel , they need virgin to help repair economy post virus .
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Old 3rd Apr 2020, 03:13
  #807 (permalink)  
 
Join Date: Aug 2018
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Originally Posted by Vindiesel View Post
Anyone thinking the government will pour $1.4b into a long-term loss-making company is dreaming,

$1.4b for a ~70% stake with market cap less than half that amount in a company with a bloated cost base and a $5b debt book significantly denominated in USD would be one of the greatest misuses of public money in history.

The argument about helping the tourist industry recover is naive, The recovery will be more U shaped than V shaped and there will be more than enough overseas capacity and capability that could be introduced into Australia to assist the tourism recovery - all without the need for throwing good taxpayer money after bad into a debt-laden company. Even in 3 years, this taxpayer money will never be recovered and VAH's debt will still be there.

If VAH's billionaire and state-backed shareholders won't tip money in, then why should Joe Public? What steps is VAH taking to immediately address its cost-base? Has it asked employees to make permanent changes to its cost base? Has it renegotiated leases? Until these changes are seen, I wish you all good luck...
I agree about the recovery.

It will be sluggish domestically but even if it does come back strongly both Qantas and Jetstar will have surplus wide body aircraft (JQ 11 787s, Qantas 40ish A330s and 787s) that can fill the void, as Iím sure no one doubts that international will take quite a bit longer to come back (50 wide bodies would be around the same capacity as virgins 77 narrowbodies).

looking beyond the 18-24 month mark, JQ alone have 18 A321LRs due which could be used for growth to fill the domestic vacuum as international demand comes back, Iím sure Qantas would do similar. Beyond this point, a new entrant would be seen into the market most likely.

so the notion that the australian domestic tourism market will be crippled by the absence of virgin is false in my view.
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Old 3rd Apr 2020, 03:29
  #808 (permalink)  
 
Join Date: Aug 2014
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I would hate to see it go the way of Ansett, I have mates working there but a 90% foreign owned company being propped up by Australian tax payers in the current climate seems unlikely. Without that it's probably over & it also seems unlikely anyone else is going to save the day. A vicious blow given most will find it hard to find employment elsewhere.
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Old 3rd Apr 2020, 03:30
  #809 (permalink)  
 
Join Date: Apr 2009
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Originally Posted by ECAMACTIONSCOMPLETE View Post
I agree about the recovery.

It will be sluggish domestically but even if it does come back strongly both Qantas and Jetstar will have surplus wide body aircraft (JQ 11 787s, Qantas 40ish A330s and 787s) that can fill the void, as I’m sure no one doubts that international will take quite a bit longer to come back (50 wide bodies would be around the same capacity as virgins 77 narrowbodies).

looking beyond the 18-24 month mark, JQ alone have 18 A321LRs due which could be used for growth to fill the domestic vacuum as international demand comes back, I’m sure Qantas would do similar. Beyond this point, a new entrant would be seen into the market most likely.

so the notion that the australian domestic tourism market will be crippled by the absence of virgin is false in my view.
Correct. And Qantas aren't idiots. In my opinion if VA does fall over then you can rely on the government demanding (and Qantas providing) public assurances about airfares and so on to address the price gouging risk.
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Old 3rd Apr 2020, 03:37
  #810 (permalink)  
 
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Originally Posted by Vindiesel View Post
Correct. And Qantas aren't idiots. In my opinion if VA does fall over then you can rely on the government demanding (and Qantas providing) public assurances about airfares and so on to address the price gouging risk.
Ahem are you serious? That would require a degree of moral behavior which even through this crises has been lacking.
I wouldn't ask anyone living in a part of the country where competion was already lacking as to how that would probably go.
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Old 3rd Apr 2020, 04:14
  #811 (permalink)  
 
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Paul Scurrah sounding a little nervous on the ABC this morning. No doubt offering the ABC an interview in prime time to get the message out and trying to influence the government for cash. Unfortunately he knows there is little likelihood of that happening. He does not seem to understand 40% of air travel has died. It will take years for the 2019/2020 levels to return. If we end up with just QF there will still have spare capacity.
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Old 3rd Apr 2020, 04:25
  #812 (permalink)  
 
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Originally Posted by C441 View Post
He was on ABC Radio's AM program this morning.

He basically states that the other owner-airlines have been approached but their owners are in the same predicament, thus cannot afford to support Virgin.
Sounds like game over in that case.
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Old 3rd Apr 2020, 04:40
  #813 (permalink)  
 
Join Date: Sep 2019
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Originally Posted by C441 View Post
He was on ABC Radio's AM program this morning.

He basically states that the other owner-airlines have been approached but their owners are in the same predicament, thus cannot afford to support Virgin.
Would be interesting if a transcript becomes available.

At least that confirms to the "SQ to the rescue !!!111!" fanboys across the internet that their 'messiah' are basically concentrating on their own survival, and won't have time for VA (if at all).
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Old 3rd Apr 2020, 06:02
  #814 (permalink)  
 
Join Date: Jun 2001
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When do the creditors call it game over and start thinking about their interests?

Employees are first in line
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Old 3rd Apr 2020, 06:06
  #815 (permalink)  
 
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Could they sell Velocity for a billion? They own about 40-50 737s. Can anything be done here.

I mean better off selling stuff than shutting down the entire company?

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Old 3rd Apr 2020, 06:07
  #816 (permalink)  
 
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Originally Posted by longjohn View Post
When do the creditors call it game over and start thinking about their interests?

Employees are first in line

Am I incorrect in saying Annual Leave, Long Service Leave is preserved but Sick Leave and Frequent Flier points are gone?

Did Tiger and Vanz get paid out redundancies? They might have thought this was a bad outcome at the time but if paid have done well out of it.

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Old 3rd Apr 2020, 06:08
  #817 (permalink)  
 
Join Date: Sep 2005
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Originally Posted by Berealgetreal View Post
Am I incorrect in saying Annual Leave, Long Service Leave is preserved but Sick Leave and Frequent Flier points are gone?

Did Tiger and Vanz get paid out redundancies? They might have thought this was a bad outcome at the time but if paid have done well out of it.
Redundancy guaranteed by government as well as LSL and annual leave
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Old 3rd Apr 2020, 06:27
  #818 (permalink)  
 
Join Date: Nov 2014
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Originally Posted by Berealgetreal View Post
Am I incorrect in saying Annual Leave, Long Service Leave is preserved but Sick Leave and Frequent Flier points are gone?

Did Tiger and Vanz get paid out redundancies? They might have thought this was a bad outcome at the time but if paid have done well out of it.
They only just made it official today with PS sending out the bad news a few hours ago. Pay out will be on the 17th they say.

I feel for everyone in TT and VANZ especially any Captain who will probably not see another command in their home countries.

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Old 3rd Apr 2020, 06:38
  #819 (permalink)  
 
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...pay out will be on the 17th they say.
Has anyone worked out what around 230 pilots redundancy and leave payouts will amount to?
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Old 3rd Apr 2020, 06:42
  #820 (permalink)  
 
Join Date: Mar 2013
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Vanz and Tiger Pilots will be better off than Vaa in the end. You donít get a redundancy payment if the place folds.
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