Go Back  PPRuNe Forums > PPRuNe Worldwide > Australia, New Zealand & the Pacific
Reload this Page >

Government Loan to Virgin Australia

Australia, New Zealand & the Pacific Airline and RPT Rumours & News in Australia, enZed and the Pacific

Government Loan to Virgin Australia

Old 20th Apr 2020, 10:21
  #901 (permalink)  
 
Join Date: Oct 2013
Location: ALandDownUnder
Posts: 115
Of course, travel will take a long time to return to the prices of the last decade, but with one company owning every single seat on the domestic market, they can literally change what ever they want.
log0008 is offline  
Old 20th Apr 2020, 10:21
  #902 (permalink)  
 
Join Date: Jul 2007
Location: BAO
Posts: 375
Ex "tail wheel" -
"You are now a Creditor of Virgin: your refund and Frequent Flyer points are in limbo."
'Secured or Not', be 'the' question- the Credit Card gig, Has been shut-down for weeks (allegedly/apparently...???)

Good Luck- stay safe & well.
Look after/think of each other.
Rgds
S28- BE
Section28- BE is offline  
Old 20th Apr 2020, 10:28
  #903 (permalink)  
 
Join Date: Nov 2014
Location: Wangaratta
Posts: 59
Paywall.. Can someone post the article
WillieTheWimp is offline  
Old 20th Apr 2020, 11:13
  #904 (permalink)  
 
Join Date: Apr 2011
Location: aus
Posts: 129
Originally Posted by WillieTheWimp View Post
Paywall.. Can someone post the article
View in porn mode
rattman is offline  
Old 20th Apr 2020, 11:18
  #905 (permalink)  
34R
 
Join Date: Jul 2002
Location: Brisbane
Age: 49
Posts: 227
Chicken littles everywhere.

They have not folded.
In the current situation, this is not unexpected and is a positive step.

There will be a Virgin MKII. It may be smaller and leaner, but it will survive.
34R is offline  
Old 20th Apr 2020, 11:24
  #906 (permalink)  
 
Join Date: Apr 2020
Location: Sydney
Posts: 5
Couldn't agree more
invertedpancake is offline  
Old 20th Apr 2020, 11:43
  #907 (permalink)  
 
Join Date: Jul 2008
Location: Australia
Posts: 350
It was a bad time before but now it is worse for the staff at Virgin. There are no guarantees as to how this all ends and thats the problem for the staff. You end up going from one news item to the next looking for what the facts are. In 2002 all was looking rosy on the 28 of Feb yet by the 4th of March it was game over.
Lookleft is offline  
Old 20th Apr 2020, 11:46
  #908 (permalink)  
 
Join Date: Jun 2009
Location: Sydney
Age: 40
Posts: 19
Going into administration is folding ; it is an admission that a business is insolvent
Very few businesses in Australia emerge from administration & continue trading < 5 % & likely closer to 1 or 2 %

How is it positive to be placed into administration ? , where you almost never emerge from

Why are you confident that this business which has lost $ 2B over the last 6 or 7 years will survive

Maybe you know something that not many other people seem to know ?

Anyone know what happened to the $1B in cash that wishful thinking employees seemed so keen to tell everyone about six weeks ago sort of
"we will be right because we have that in cash in the bank" , did they ever actually have it

Goodluck to the Virgin employees I hope you get your entitlements
Telfer86 is offline  
Old 20th Apr 2020, 11:57
  #909 (permalink)  
 
Join Date: Oct 2016
Location: Melbourne
Posts: 181
Goodluck to the Virgin employees I hope you get your entitlements

No, we are getting our jobs back.
Turnleft080 is offline  
Old 20th Apr 2020, 12:06
  #910 (permalink)  
 
Join Date: Aug 2003
Location: Australia
Posts: 451
Yes, the success rate is under 10%. Good luck.

Success rate

success rate 2

success rate 3
John Citizen is offline  
Old 20th Apr 2020, 12:16
  #911 (permalink)  
 
Join Date: Aug 2004
Location: Melbourne, Australia
Posts: 8,185
The Directors had no choice because trading while insolvent would destroy them personally. This is why Directors and CEOs get paid big bucks, not that it is any consolation.

What I would hope for now is that the Australian Government leans over backward to ensure Virgin survives. The shareholders have lost pretty much everything, as is always their risk.

What concerns me now is that Qantas will be lobbying every decision maker in Government and Treasury - all the ******* ANU trained economists, to “let Virgin go” because “Australia can only afford one airline - economies of scale, you know”. Furthermore they will use every dirty trick in the book to destroy what’s left of Virgin. Probably already offering to honor their tickets, take their slots, rent their terminal space, etc., etc.

The critical issue now is the AOC and the continuing airworthiness of the aircraft and certification of crews. Once that gets affected Virgin is gone.That is where CASA comes in, they can either help keep Virgin on life support or be uncompromising and destroy it as they had to do to Ansett when they pulled the AOC.

God bless you all.
Sunfish is offline  
Old 20th Apr 2020, 12:16
  #912 (permalink)  
 
Join Date: Jun 2009
Location: Sydney
Age: 40
Posts: 19
I hope you are right TL

But I don't think that will happen if you go into administration

Telfer86 is offline  
Old 20th Apr 2020, 12:29
  #913 (permalink)  
 
Join Date: Jan 2019
Location: Australia
Posts: 94
Originally Posted by Telfer86 View Post
Going into administration is folding ; it is an admission that a business is insolvent
Very few businesses in Australia emerge from administration & continue trading < 5 % & likely closer to 1 or 2 %

How is it positive to be placed into administration ? , where you almost never emerge from

Why are you confident that this business which has lost $ 2B over the last 6 or 7 years will survive

Maybe you know something that not many other people seem to know ?

Anyone know what happened to the $1B in cash that wishful thinking employees seemed so keen to tell everyone about six weeks ago sort of
"we will be right because we have that in cash in the bank" , did they ever actually have it

Goodluck to the Virgin employees I hope you get your entitlements

It’s actually about 1 in 4 companies that come out of administration.

What VA employees are probably sick of reading here is users who post well wishes to employees after having just told them how the place is completely stuffed and should be closed down / not be given a loan / not allowed to have foreign entities buy in.
Colonel_Klink is offline  
Old 20th Apr 2020, 12:32
  #914 (permalink)  
 
Join Date: Aug 2002
Location: PER
Posts: 1,168
Originally Posted by Colonel_Klink View Post
It’s actually about 1 in 4 companies that come out of administration.

What VA employees are probably sick of reading here is users who post well wishes to employees after having just told them how the place is completely stuffed and should be closed down / not be given a loan / not allowed to have foreign entities buy in.
first sound advice would be to a VA employee if they’re looking for reassurance they’d be best not to come anywhere near PPRuNe anyway !
topend3 is offline  
Old 20th Apr 2020, 12:35
  #915 (permalink)  
 
Join Date: Feb 2007
Location: Australia
Posts: 338
Originally Posted by Telfer86 View Post
Going into administration is folding ; it is an admission that a business is insolvent
Very few businesses in Australia emerge from administration & continue trading < 5 % & likely closer to 1 or 2 %

How is it positive to be placed into administration ? , where you almost never emerge from

Why are you confident that this business which has lost $ 2B over the last 6 or 7 years will survive

Maybe you know something that not many other people seem to know ?

Anyone know what happened to the $1B in cash that wishful thinking employees seemed so keen to tell everyone about six weeks ago sort of
"we will be right because we have that in cash in the bank" , did they ever actually have it

Goodluck to the Virgin employees I hope you get your entitlements

Normally I’d agree that VA is the kiss of death for a company. Especially one that relies on being paid so far ahead of actually providing the product or service. Customers won’t touch you with a ten foot pole once they hear those words uttered. But if you were going to pick a time in the last century for an airline to go into voluntary administration, this is it.

Virgin’s bookings after this announcement tomorrow will be the same as they were yesterday. Yes those bookings are zero but it’s an unheard of scenario and one which will help rather than hinder. Imagine if this had happened 6 months ago when airlines were operating normally. There would be less reason for hope than now.
Fonz121 is offline  
Old 20th Apr 2020, 13:30
  #916 (permalink)  
 
Join Date: Jul 2010
Location: Asia
Posts: 870
Once a company is in administration any debts incurred from that point onwards are guaranteed by the administrator so there shouldn't be any problem with essential suppliers such as fuel and NAV charges, and with $700+ million in the bank Deloittes will probably allow limited flights to resume as long as the income from them exceeds the cost of operating them. They will want to keep the basics on life support just incase there is any chance of selling the airline as a going concern so the required post holders CP, HOT etc will be kept on for now.

Standby for the official announcement and see who makes a move once the creditors are formally put a bay.
krismiler is offline  
Old 20th Apr 2020, 14:15
  #917 (permalink)  
 
Join Date: Oct 2016
Location: Melbourne
Posts: 181
Oh! JB I hope you get a good night sleep tonight you derserve it. I hope your proud of your 10 years. Hope your shiny cars are sparkling as well.
They are so much more important than my heart attack I'm about to have. But don't worry about that JB you'll be fine.
Turnleft080 is offline  
Old 20th Apr 2020, 14:22
  #918 (permalink)  

Evertonian
 
Join Date: May 2000
Location: #3117# Ppruner of the Year Nominee 2005
Posts: 10,334
Korda Mentha must be mad that they missed out on another mother load...
Buster Hyman is offline  
Old 20th Apr 2020, 17:35
  #919 (permalink)  
 
Join Date: Sep 2002
Location: Australia
Posts: 736
Originally Posted by Turnleft080 View Post
Oh! JB I hope you get a good night sleep tonight you derserve it. I hope your proud of your 10 years. Hope your shiny cars are sparkling as well.
They are so much more important than my heart attack I'm about to have. But don't worry about that JB you'll be fine.
I hope he wraps his McLaren around a lamppost!
The Bullwinkle is offline  
Old 20th Apr 2020, 20:56
  #920 (permalink)  
Thread Starter
 
Join Date: Nov 2008
Location: australia
Posts: 75
Let's se how the VIRGIN VA pans out. On a much smaller scale accountants Ferrier Hodgson managed to sell Flight West Airlines to Qld Airline Holdings after 9 months in Administration as going a concern. QAH became Alliance Airlines which is still running in their niche market, despite having contracts with Virgin and an unwelcomed 19% Qantas shareholding. A revamped Virgin is possible and liquidation is not the sole course of action available one would hope.
chance is offline  

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.