Government Loan to Virgin Australia
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.
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.
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
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.
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.
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.
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
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.
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.
Standby for the official announcement and see who makes a move once the creditors are formally put a bay.
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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.
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.
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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.
And now it is official. Here's the ASX announcement
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"IF" VA come back in some form remember they won't be competing in a pre CV19 market. It will be a LOT tougher for a long time so any new operation has a high chance of failing (again), QF are in the same environmental boat but obvioisly where not going down the toilet pre CV19.
I was told by a friend that I had to cancel my flight before VA announced voluntary administration. That way my flight would of gone into credit and id get some sort of refund back as id be a creditor. But seeing as though I didnt do that - my flight still stands as normal and scheduled for November and i will lose money on the airfare cos VA have now announced voluntary administration. Bear in mind that my flight was a cheap airfare and non-refundable.
So does it matter either way? I lose out anyway regardless if i cancelled flight and asked to put flight into credits or left it as it was which i did? Is this correct?
So does it matter either way? I lose out anyway regardless if i cancelled flight and asked to put flight into credits or left it as it was which i did? Is this correct?
Depends if their suppliers, fuel, catering, etc think they will get paid or move to rescind their contracts.
Depends if their suppliers, fuel, catering, etc think they will get paid or move to rescind their contracts.
And now it is official. Here's the ASX announcement
And now it is official. Here's the ASX announcement
From TWU : “There is still time for the federal government to work on an investment plan to get through this period of crisis and taxpayers will get a double benefit. The government will retain a competitive aviation market and they will get a return on their equity stake.”
Will we get a return on our equity stake? When? The current shareholders haven't had much of a return for 10 years.
Will we get a return on our equity stake? When? The current shareholders haven't had much of a return for 10 years.
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CASA did no have to pull Ansetts AOC: they were complicit in Ansett;s demise when they failed to properly and correctly undertake their obligatory oversight of Ansett, in particular Ansetts engineering responsibilities.
I.e. it is CASA's responsibility to ensure manufacturers modifications are carried out where in the case of the Ansett Boeing 767 they did not ensure Ansett carried out the rear pressure bulkhead modification; only when Boeing checked to see if this was done by the due date did the whatsit hit the fan when Boeing was obliged to tell
Ansett and CASA whereupon CASA had no option but to ground the aircraft. QED.
(Boeing was obliged i,e Boeing had to protect themselves)
I.e. it is CASA's responsibility to ensure manufacturers modifications are carried out where in the case of the Ansett Boeing 767 they did not ensure Ansett carried out the rear pressure bulkhead modification; only when Boeing checked to see if this was done by the due date did the whatsit hit the fan when Boeing was obliged to tell
Ansett and CASA whereupon CASA had no option but to ground the aircraft. QED.
(Boeing was obliged i,e Boeing had to protect themselves)
