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Government Loan to Virgin Australia

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Government Loan to Virgin Australia

Old 21st Apr 2020, 00:40
  #921 (permalink)  
 
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For the TWU,
How can you formulate an “investment plan” when you don’t know when domestic travel will resume let alone international?
So people expect businesses to invest when you have no idea when revenue will start.
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Old 21st Apr 2020, 00:53
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Originally Posted by topend3
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.
If the TWU think there is a return on an equity stake why don't they put their money where their mouth is and let TWU Super invest in Virgin to preserve jobs?
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Old 21st Apr 2020, 00:55
  #923 (permalink)  
 
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From VA’s statement To passengers and to the Stock Exchange. ( not word perfect but correct info )
” We know you might be worried about what the Voluntary Administration news means for us and your flights.”
Rest assured, we’re continuing to operate scheduled flights as normal which are helping to transport essential workers ,maintain important freight corridors and return Australians home. Your travel credits also remain valid.”

Looks like I might be able to get home to Brisbane from Perth after all.
I sure hope so , it’s’ been a long unscheduled stay here!
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Old 21st Apr 2020, 01:00
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Before you buy your tickets on said route, find out about the refund options.
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Old 21st Apr 2020, 01:08
  #925 (permalink)  
 
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Already have a return ticket and allocated seat for flights home 26 May.
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Old 21st Apr 2020, 01:10
  #926 (permalink)  
 
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Originally Posted by John Citizen
Yes, the success rate is under 10%. Good luck.

Success rate

success rate 2

success rate 3
I think you should read your articles again.
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Old 21st Apr 2020, 01:50
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https://www.asx.com.au/asxpdf/202004...kq7kcb12fl.pdf

So VA enters the next phase.
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Old 21st Apr 2020, 02:02
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I think you should read your articles again.
Maybe you should read them again, otherwise let me quote them:

1st article:
Voluntary administrations that enter into DOCAs 28.5% DOCAs
that are successfully completed and deliver a trading enterprise within a year ~25% (writer’s estimate)
Overall result: estimate of percentage of insolvent companies that use voluntary administration to successfully restructure business (0.13*0.285*0.25)% 1%
2nd article:
We track a number of statistics and one of those is the success, or otherwise, of Voluntary Administrations. Here are the facts:
  • 15% of corporate insolvencies are Voluntary Administrations – the rest are liquidations or receiverships;
  • around 33% of VAs successfully execute a Deed of Company Arrangement (“DOCA”);
  • so only 5% of insolvent companies successfully executing a DOCA
3rd article:
Unfortunately, a close analysis of the facts reveals that voluntary administrations are actually very expensive and, in the vast majority of cases, fail in their stated objective of saving a business.
undertaken by the insolvency practitioners’ professional body, ARITA, to determine the success rate. It’s not good news:
  • 15% of corporate insolvencies are voluntary administrations;
  • 33% of voluntary administrations result in a DOCA;
  • 28% of DOCAs have some sort of “creative outcome”, such as saving the business.
So what does that devolve into? Voluntary administrations save around 2% of insolvent businesses. Ouch!
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Old 21st Apr 2020, 02:04
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Why don't you come to Australia and theatrically tear a 200M dollar cheque for Virgin, Branson.

And yes I am aware of the current ownership structure. Branson always cashes out at others expense. I hope to see a renamed airline, phoenix like emerge from the ashes.
Virgin Atlantic is next.
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Old 21st Apr 2020, 02:05
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Ex Ansett.
Is Paul S ex Ansett? As he channeled is inner Rod E. “Great airline into a good business “
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Old 21st Apr 2020, 02:06
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No Branson would rather fleece a whole new bunch of people. Virgin Galatic
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Old 21st Apr 2020, 02:27
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I doubt we will ever see Branson in Australia again. Good riddance show pony.
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Old 21st Apr 2020, 02:28
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Mark:

"Is Paul S ex Ansett? As he channeled is inner Rod E. “Great airline into a good business “ "
Yes.

Rgds
S28- BE
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Old 21st Apr 2020, 02:52
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Originally Posted by markontop
No Branson would rather fleece a whole new bunch of people. Virgin Galatic
Living the good life on his tax free Island. How fortunate. And of course, as he tells us, his wealth is mostly in assets and businesses so it’s not like he can use cash to help his staff. I’m just glad the bloke is finally seen for what he is - just another billionaire businessman in it for himself.
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Old 21st Apr 2020, 02:54
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Paragraph377 what's your employment history? Ever employed by Virgin?
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Old 21st Apr 2020, 03:18
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Originally Posted by Sunfish
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.
So pious !

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Old 21st Apr 2020, 04:06
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Administrators talking a good game at the press conference today. Way too upbeat for my liking, usually indicates large problems.

Come back in 3 months folks. We will find out if it’s salvageable later once they have run their knife through it.
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Old 21st Apr 2020, 04:08
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Mr Strawbridge said there were "no plans to make any redundancies". The airline will continue to operate its scheduled international and domestic flights.
Mr Strawbridge said he did not plan to make any of the airline's 10,000 employees redundant, but how many aircraft it kept, and how many routes it continued to fly on, would not be clear until the new owners took over.
"We'll come back leaner, stronger and fitter."
The word games begin.
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Old 21st Apr 2020, 04:09
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Hard to believe what he says when they drop in the word "leaner".
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Old 21st Apr 2020, 04:24
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'Slight' Thread Drift.......

Strange isn't it....How 'everybody' is currently preaching that Aust NEEDS the competition of a two airline policy to encourage competition...etc etc

How easily do people forget that without a viable GENERAL AVIATION Industry - which would employ far more 'Aussie TAX PAYERS' than Virgin, The Airline Industry is F*$KED.
Where do your future pilots come from?
Not only has G/A been allowed to 'wither on the vine' courtesy of its supposed 'regulator'...............It has been DECIMATED!

What about all of the Flying Schools, Charter /Airwork Operators, LAMES, Instrument Suppliers / Maintainers, Country Airports....etc etc etc and the various 'downstream' industries...e.g. Aircraft Refuellers, Aircraft Painters, Aircraft Upholsterers.....

Need I go ON..?????

NO CHEERS HERE ! NOPE! NONE AT ALL!!!
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