Government Loan to Virgin Australia
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I’m nervous after that PM statement. It’s clear in that statement from the PM that they are not assisting. Bit hard to say that, then pull some 11th hour deal.
The Government isn’t going to help. Looks like a Shorten government would have.
There is only really one option left. Branson to give them a loan. That’s the last desperate measure before calling it a day. He didn’t save Virgin America.
I’m feeling everyone’s pain. I’m quite angry actually. It didn’t have to end like this. 20 years. What an absolute waste and will be the worst corporate disaster in my lifetime. Bryan and Borghetti need to be stripped of every single cent to their names.
We don’t want some bottom feeding loco from the far north taking over. I hope David Neeleman sees an opportunity to bring his pride and joy down under, because my god it would be a weapon here. That’s the sort of carrier we need here, what Virgin should have been, and what this market needs. Not a Lion or Air Asia.
The Government isn’t going to help. Looks like a Shorten government would have.
There is only really one option left. Branson to give them a loan. That’s the last desperate measure before calling it a day. He didn’t save Virgin America.
I’m feeling everyone’s pain. I’m quite angry actually. It didn’t have to end like this. 20 years. What an absolute waste and will be the worst corporate disaster in my lifetime. Bryan and Borghetti need to be stripped of every single cent to their names.
We don’t want some bottom feeding loco from the far north taking over. I hope David Neeleman sees an opportunity to bring his pride and joy down under, because my god it would be a weapon here. That’s the sort of carrier we need here, what Virgin should have been, and what this market needs. Not a Lion or Air Asia.
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[QUOTE][/How many $ million a year do you think Branson pulls out of VAH in fees for the franchise,QUOTE]
I believe he has foregone those fees whilst the crisis goes on.
I also believe he propping Virgin Atlantic with a few hundred million.
I believe he has foregone those fees whilst the crisis goes on.
I also believe he propping Virgin Atlantic with a few hundred million.
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Well, that quote from Morrison is fairly clear cut.
Unless "industry wide" is code for a rescue for all equally. However i cannot see intervention as Virgin stands right now. As much as I want them to, I can see why they would not.
Administration likely if it goes on much longer. Major share holders disinterested in further cash being injected.
If it goes into admin, I believe the administrators can force holders to take a haircut and cut payments etc and hopefully get a structure that can live on with as many staff as they can carry.
Unless "industry wide" is code for a rescue for all equally. However i cannot see intervention as Virgin stands right now. As much as I want them to, I can see why they would not.
Administration likely if it goes on much longer. Major share holders disinterested in further cash being injected.
If it goes into admin, I believe the administrators can force holders to take a haircut and cut payments etc and hopefully get a structure that can live on with as many staff as they can carry.
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Perhaps Scotty from Maketing, the ‘speaking in tongues’ Pentecostal zealot will use prayer and a Hillsong singalong to solve all of Australia’s economic issues?? C’mon Scomo, let it rip mate, apparently your personal sky fairy will help you and us!!
The bondholders will be very keen to do a deal. Maybe a debt repayment : equity swap. There are plenty of options. I don’t mean to give false hope rather highlight a government (AUS or SIN) loan is not the only option.
Wealthy individuals want VAH to survive. White knights do exist. This trading halt brings to a head these considerations. You don’t buy a house at auction when you know there will be a mortgagee sale for the same house in a few weeks.
Administration is not a death spiral, especially if some of the debt can be restructured, which is exactly what is being negotiated/proposed.
Wealthy individuals want VAH to survive. White knights do exist. This trading halt brings to a head these considerations. You don’t buy a house at auction when you know there will be a mortgagee sale for the same house in a few weeks.
Administration is not a death spiral, especially if some of the debt can be restructured, which is exactly what is being negotiated/proposed.
Qantas has a 49% cap on foreign ownership.
Virgin is over 91% foreign owned. My taxpayer dollars aren't going to be used saving a grossly mismanaged company that is over 91% foreign owned.
The problem for Virgin's survival is two fold. The foreign ownership, and the core belief in the free market rather than government ownership of assets. The deal needs to be done so that the Chinese,SIA,Etihad& Branson are removed from the company. So if that means it has to collapse before being reborn, I'd suggest that is the government's view.
I'd also suggest that Virgin isn't going to disappear (I hope not) and that a certain deal will be done. But we will just have to wait and see.
Double Clutch, Virgin isn't 'partly owned by overseas companies, it's pretty much fully owned!
Qantas has a 49% cap on foreign ownership.
Virgin is over 91% foreign owned. My taxpayer dollars aren't going to be used saving a grossly mismanaged company that is over 91% foreign owned.
The problem for Virgin's survival is two fold. The foreign ownership, and the core belief in the free market rather than government ownership of assets. The deal needs to be done so that the Chinese,SIA,Etihad& Branson are removed from the company. So if that means it has to collapse before being reborn, I'd suggest that is the government's view.
I'd also suggest that Virgin isn't going to disappear (I hope not) and that a certain deal will be done. But we will just have to wait and see.
Qantas has a 49% cap on foreign ownership.
Virgin is over 91% foreign owned. My taxpayer dollars aren't going to be used saving a grossly mismanaged company that is over 91% foreign owned.
The problem for Virgin's survival is two fold. The foreign ownership, and the core belief in the free market rather than government ownership of assets. The deal needs to be done so that the Chinese,SIA,Etihad& Branson are removed from the company. So if that means it has to collapse before being reborn, I'd suggest that is the government's view.
I'd also suggest that Virgin isn't going to disappear (I hope not) and that a certain deal will be done. But we will just have to wait and see.
And for those that think the free market is the answer to everything - I assume you don’t support the money on offer to regional airlines? Or the money being spent keeping childcare centres open. Or the money being given to universities to help them offset the massive loss in revenue from foreign students. I also assume you’ll hand back any job keeper subsidy you (or your company) is receiving because sure as hell having the government chip in $3k a month per employee isn’t a free market either.
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Virgin is over 91% foreign owned. My taxpayer dollars aren't going to be used saving a grossly mismanaged company that is over 91% foreign owned.
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Hopefully it’s a poker game at the moment , bluffing the owners that they are about to lose everything if they don’t pony up ? Their airlines not operating to Australia so no income from any extra investment? Scomo can easily say something changed and is now willing to help but that’s not the case today it seems .
Good luck .
Good luck .
bingo.
I feel like I’m on crazy pills when anyone brings up “free market” at the moment.
to quote the polarising Alan Jones ”the government has put the market in a coma, it needs to pay for the life support”
It’s interesting when people refer to the free market - because the market is exactly the opposite to that right now. In fact there is no market because of (the correct) government actions.
And for those that think the free market is the answer to everything - I assume you don’t support the money on offer to regional airlines? Or the money being spent keeping childcare centres open. Or the money being given to universities to help them offset the massive loss in revenue from foreign students. I also assume you’ll hand back any job keeper subsidy you (or your company) is receiving because sure as hell having the government chip in $3k a month per employee isn’t a free market either.
And for those that think the free market is the answer to everything - I assume you don’t support the money on offer to regional airlines? Or the money being spent keeping childcare centres open. Or the money being given to universities to help them offset the massive loss in revenue from foreign students. I also assume you’ll hand back any job keeper subsidy you (or your company) is receiving because sure as hell having the government chip in $3k a month per employee isn’t a free market either.
The free market means minimum intervention by the government. Despite the narrowing of the difference, LNP and ALP still do differ here slightly. It doesn't mean no intervention. So hence why the government's current intervention strategies have been what they've been. e.g. the $715m package.
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I’m nervous after that PM statement. It’s clear in that statement from the PM that they are not assisting. Bit hard to say that, then pull some 11th hour deal.
The Government isn’t going to help. Looks like a Shorten government would have.
There is only really one option left. Branson to give them a loan. That’s the last desperate measure before calling it a day. He didn’t save Virgin America.
I’m feeling everyone’s pain. I’m quite angry actually. It didn’t have to end like this. 20 years. What an absolute waste and will be the worst corporate disaster in my lifetime. Bryan and Borghetti need to be stripped of every single cent to their names.
We don’t want some bottom feeding loco from the far north taking over. I hope David Neeleman sees an opportunity to bring his pride and joy down under, because my god it would be a weapon here. That’s the sort of carrier we need here, what Virgin should have been, and what this market needs. Not a Lion or Air Asia.
The Government isn’t going to help. Looks like a Shorten government would have.
There is only really one option left. Branson to give them a loan. That’s the last desperate measure before calling it a day. He didn’t save Virgin America.
I’m feeling everyone’s pain. I’m quite angry actually. It didn’t have to end like this. 20 years. What an absolute waste and will be the worst corporate disaster in my lifetime. Bryan and Borghetti need to be stripped of every single cent to their names.
We don’t want some bottom feeding loco from the far north taking over. I hope David Neeleman sees an opportunity to bring his pride and joy down under, because my god it would be a weapon here. That’s the sort of carrier we need here, what Virgin should have been, and what this market needs. Not a Lion or Air Asia.
Like today, the liberal government of the time fumbled and then refused to help. Qantas stirred the pot and the unions merely sought to pursue their open agenda. The Labor government of the time resorted to scoring points.
In the end 16000 people lost their jobs.
Within a short space of time Virginblue and Qantas had filled the gap. The Air was much fairer than it had been before and more aviation jobs were created than previous.
Since the capacity war of 2013, VAI and QF have both been propping up yields in the domestic market with constrained capacity. For QF times have never been better. For VAI, even under these conditions they have struggled to make a profit.
Time for a new entrant, unconstrained capacity and more jobs.
My advice, employees need to think about their entitlements before Scurrah and his band burn through it all.
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I do feel that SM can’t really say anything else at the moment. He wants SQ (or at least one of the investors) to come forward with the cash. It looks to me like a bit of brinkmanship. If he indicates he will provide the assistance, the investors wallets will close immediately. 11 hour maybe.
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AFR Street Talk reporting that all major shareholders unwilling to put in more equity.
https://www.afr.com/street-talk/virg...0200415-p54jwg
https://www.afr.com/street-talk/virg...0200415-p54jwg
I work for the other mob, but I wish you all the best and understand it must be absolute hell what you’re feeling right now. Especially the ones who went through it before. Or the ones like me who are stood down with a family wondering how the mortgage will look towards the end of the year.
What I can say is the government introduced these measures and strangled our airline industry. It completely restricts our ability to trade. Airlines need forward bookings and consumer confidence.
So therefore there should be a sovereign backing of debt for our airlines, ticket guarantees for consumer confidence and if the airlines can’t meet their debt when this is over, then so be it. However right now they should be afforded life support as necessary to hibernate and be ready to turn on again in the future.
Yes, the government can’t pick winners or losers, but it’s the government who’s done this to its companies and citizens to save its health system and liability. So it’s the government who needs to sort it out.
What I can say is the government introduced these measures and strangled our airline industry. It completely restricts our ability to trade. Airlines need forward bookings and consumer confidence.
So therefore there should be a sovereign backing of debt for our airlines, ticket guarantees for consumer confidence and if the airlines can’t meet their debt when this is over, then so be it. However right now they should be afforded life support as necessary to hibernate and be ready to turn on again in the future.
Yes, the government can’t pick winners or losers, but it’s the government who’s done this to its companies and citizens to save its health system and liability. So it’s the government who needs to sort it out.
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AFR Street Talk reporting that all major shareholders unwilling to put in more equity.
https://www.afr.com/street-talk/virg...0200415-p54jwg
https://www.afr.com/street-talk/virg...0200415-p54jwg
