Government Loan to Virgin Australia
Exactly, Qf was on the tit for 70 years and Virgin is asking for a LOAN from a government that left the borders open despite a known threat and approaching pandemic.
Virgin is asking for an unsecured loan. If Virgin were to fold up, there isn’t enough of the company left to repay the loan.
Take the emotion out of it and look at it logically
I can't believe people are attempting to draw parallels between floating Qantas and the current predicament VA now faces.
That's about as misguided as the childish PR campaign Virgin have been wasting their money on with full page adds in the print media and endless change.org campaigns on facebook.
But if you want to draw comparisons to the $1.35 billion that memo speaks of, when the remainder of the Qantas float proceeded in 1995, the government received A$1.45 billion in proceeds after the public share offer took place.
I doubt they will see a similar return on their investment this time around, particularly if the travel ban remains in force for another 6-10 months.
That's about as misguided as the childish PR campaign Virgin have been wasting their money on with full page adds in the print media and endless change.org campaigns on facebook.
But if you want to draw comparisons to the $1.35 billion that memo speaks of, when the remainder of the Qantas float proceeded in 1995, the government received A$1.45 billion in proceeds after the public share offer took place.
I doubt they will see a similar return on their investment this time around, particularly if the travel ban remains in force for another 6-10 months.
Hmmm... lets see, government ownership in the country you operate in, including the lion's share of all the government contracts for say 98 years or multiple conflicting owners brought about because of a personal vendetta between two short men from Qantas group? What a leg up Virgin has had!
The irony will be when international hasn't recovered and half your workforce is gone whilst you spent time hanging **** on a tiny competitor and its staff during a particularly tough time. Keep praying for the VA failure.
Personally I hope all the share holders get wiped with their debt and a new owner turns up excluding the need for help from the tax payer. That, in my opinion, would be the best outcome.
Irony is the debt was racked up by a guy that worked for QF his whole life, left with millions in his pocket leaving 10,000 staff clinging to their jobs while competitor sinks the boot in. Heard of karma? Have another crack!
The irony will be when international hasn't recovered and half your workforce is gone whilst you spent time hanging **** on a tiny competitor and its staff during a particularly tough time. Keep praying for the VA failure.
Personally I hope all the share holders get wiped with their debt and a new owner turns up excluding the need for help from the tax payer. That, in my opinion, would be the best outcome.
Irony is the debt was racked up by a guy that worked for QF his whole life, left with millions in his pocket leaving 10,000 staff clinging to their jobs while competitor sinks the boot in. Heard of karma? Have another crack!
spent time hanging **** on a tiny competitor
Richard Branson tears a $240 million cheque
As someone else here mentioned, they even celebrated the collapse of Ansett.
Karma hurts.
Last edited by John Citizen; 16th Apr 2020 at 04:03.
Now considering a move to Melbourne.
https://www.afr.com/street-talk/virg...0200416-p54kal
Virgin Australia is considering moving its corporate head office and Velocity Frequent Flyer businesses to Melbourne as part of its bid to save the company.
It is understood Virgin's board has discussed packing up the company's Brisbane headquarters and moving south, in a move that would impact an estimated 1500 employees.
Melbourne: home of the MCG and... Virgin Australia? Joe Armao
Likewise, the plan would see it also take Velocity Frequent Flyer to Melbourne, which would impact another 200 or so jobs.
It is understood Virgin reckons moving both arms to Melbourne could have a material impact to the company's bottom line, at a time when CEO Paul Scurrah and his team are trying to slash costs to ensure the airline owner survives COVID-19 and what could be a prolonged economic downturn.
While there are plenty of balls in the air at Virgin, the move is one option that could help the airline re-set its cost base for the long-term.
Paul Scurrah, CEO of Virgin Australia. Peter Braig
It comes as Virgin is fighting for survival and seeking measures to quickly reduce its $5 billion debt load. It is in talks with lenders, shareholders, potential investors and, perhaps most importantly, the government, in an effort to secure funds.
Virgin is believed to be seeking about $1.4 billion in fresh capital to spearhead a financial restructure. It went to the government seeking that amount a fortnight ago, and is exploring other avenues.
Its existing shareholders have declined to tip in fresh funds, as Street Talk revealed on Wednesday, and its bankers are now trying to rustle up interest among other potential investors.
Virgin had $4.8 billion in interest-bearing liabilities at December 31 and $900 million in unrestricted cash and short term investments. Its next debt maturity is a $US350 million ($546 million) bond due in October 2021.
Its shares are in a trading halt while the various discussions take place. The company's equity value was $720 million prior to the halt, although it is widely recognised by major shareholders that their investments will be wiped out as part of the looming restructure.
https://www.afr.com/street-talk/virg...0200416-p54kal
Virgin Australia is considering moving its corporate head office and Velocity Frequent Flyer businesses to Melbourne as part of its bid to save the company.
It is understood Virgin's board has discussed packing up the company's Brisbane headquarters and moving south, in a move that would impact an estimated 1500 employees.
Melbourne: home of the MCG and... Virgin Australia? Joe ArmaoLikewise, the plan would see it also take Velocity Frequent Flyer to Melbourne, which would impact another 200 or so jobs.
It is understood Virgin reckons moving both arms to Melbourne could have a material impact to the company's bottom line, at a time when CEO Paul Scurrah and his team are trying to slash costs to ensure the airline owner survives COVID-19 and what could be a prolonged economic downturn.
While there are plenty of balls in the air at Virgin, the move is one option that could help the airline re-set its cost base for the long-term.
It is understood a Melbourne move has come up in discussions with creditors and investors as something under consideration. It is seen as a "Hail Mary" option and nothing has been finalised, sources said.
Paul Scurrah, CEO of Virgin Australia. Peter BraigIt comes as Virgin is fighting for survival and seeking measures to quickly reduce its $5 billion debt load. It is in talks with lenders, shareholders, potential investors and, perhaps most importantly, the government, in an effort to secure funds.
Virgin is believed to be seeking about $1.4 billion in fresh capital to spearhead a financial restructure. It went to the government seeking that amount a fortnight ago, and is exploring other avenues.
Its existing shareholders have declined to tip in fresh funds, as Street Talk revealed on Wednesday, and its bankers are now trying to rustle up interest among other potential investors.
Virgin had $4.8 billion in interest-bearing liabilities at December 31 and $900 million in unrestricted cash and short term investments. Its next debt maturity is a $US350 million ($546 million) bond due in October 2021.
Its shares are in a trading halt while the various discussions take place. The company's equity value was $720 million prior to the halt, although it is widely recognised by major shareholders that their investments will be wiped out as part of the looming restructure.
Join Date: May 2014
Location: Uranus
Posts: 3
Likes: 0
Received 0 Likes
on
0 Posts
How exactly would this save money? I would've thought commercial rents would be much higher in Melbourne than Brisbane, not to mention relocation costs, redundancies for staff that can't move, etc etc
Join Date: Oct 2013
Location: New Zealand
Age: 71
Posts: 1,475
Likes: 0
Received 0 Likes
on
0 Posts
How exactly would this save money? I would've thought commercial rents would be much higher in Melbourne than Brisbane, not to mention relocation costs, redundancies for staff that can't move, etc etc
Of course Fed Labor are in favour of it, they need a point of difference at a time they are gasping for air and desperately trying to be relevant. Crises are a bad time for oppositions.
Have the TT and VAINZ redundancies been paid?
Funny how they can’t pay the employees but executives always get their $9.9million payouts immediately. I hope Karl is doing alright in these harsh economic times whilst on his gardening leave until June.
The taxpayers should not bail out VAH, it would be rewarding gross mismanagement by the current VAH board and executive.
Join Date: Jun 2010
Location: Melbourne
Posts: 10
Likes: 0
Received 0 Likes
on
0 Posts
given PS has a strong Labor connection I assumed QLD would have given them more free money, maybe the communists in Vic are offering more $$$$.
Have the TT and VAINZ redundancies been paid?
Funny how they can’t pay the employees but executives always get their $9.9million payouts immediately. I hope Karl is doing alright in these harsh economic times whilst on his gardening leave until June.
The taxpayers should not bail out VAH, it would be rewarding gross mismanagement by the current VAH board and executive.
Have the TT and VAINZ redundancies been paid?
Funny how they can’t pay the employees but executives always get their $9.9million payouts immediately. I hope Karl is doing alright in these harsh economic times whilst on his gardening leave until June.
The taxpayers should not bail out VAH, it would be rewarding gross mismanagement by the current VAH board and executive.
VANZ have apparently been paid....
TT still waiting like usual.
They were looking at moving into the new Target Office building in Melbourne (Williams Landing) were they not?
If they want to attract quality talent inside the office then they need to be in Melbourne or Sydney. Whether it’s Data, IT, Creative, Finance, whatever, the best of best reside in these two cities. Target was previously based in Geelong. They have now moved to Melbourne in a bid to secure better talent from local and abroad. They built a new office next to the train station.
Dan has a habit of throwing cash around, the taxpayer already pays for Jetstar’s red ink at Avalon for the next decade, shouldn’t be an issue.
If they want to attract quality talent inside the office then they need to be in Melbourne or Sydney. Whether it’s Data, IT, Creative, Finance, whatever, the best of best reside in these two cities. Target was previously based in Geelong. They have now moved to Melbourne in a bid to secure better talent from local and abroad. They built a new office next to the train station.
Dan has a habit of throwing cash around, the taxpayer already pays for Jetstar’s red ink at Avalon for the next decade, shouldn’t be an issue.
Join Date: Feb 2011
Location: dubai
Posts: 67
Likes: 0
Received 0 Likes
on
0 Posts
As someone else here mentioned, they even celebrated the collapse of Ansett.
Karma hurts.
Karma hurts.
It was disgusting watching a small minority of Virgin Blue staff dancing around the Ansett collapse. As one who went through this terrible time, I really feel for the vast majority of Virgin pilots who would equally be disturbed by the actions of some in past times.
Australia needs 2 airlines and I hope VA survives in one form or another.
Evertonian
What I'm unaware of is how invested in their BNE properties they are. Anyone care to enlighten?
Join Date: Jul 2005
Location: Australia
Posts: 45
Likes: 0
Received 0 Likes
on
0 Posts
Very sad, starting to see the strain and stress of the situation coming through from some contributors here. Look after yourselves, influencing the Prune audience really doesn’t achieve anything. Clutching at straws re QF float and displaying desperation isn’t the way to go for your health and happiness.