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"Virgin Australia Mk II could launch in as little as three months"

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"Virgin Australia Mk II could launch in as little as three months"

Old 30th Apr 2020, 22:26
  #241 (permalink)  
 
Join Date: Jan 2019
Location: Australia
Posts: 142
Originally Posted by Paragraph377 View Post
Unless he wants to purchase a small portion of the company not because it makes loads of money, but to simply ensure that his mining interests are serviced by a regular FIFO service. Mining is and will remain his focus, not airlines. Smart man. As a hypothetical, he buys in, if the purchased chunk is big enough he gets a seat on the Board so thatís good. But what if it isnít profitable? Does it matter? He loses say $50m per year in the airline but it keeps his mines operating which personally fills his pocket with hundreds of millions of dollars per year. Sounds good to me. Even better, he might break even on his invested component or even make a couple of bucks. But the methodology behind his buy-in is to keep his mines staffed and operating 24/7. Thatís where the money is, mining. And thatís his motivation. That said, who cares what his motivation is, if it keeps Pilots in the air then that is a good thing.
If that is his interests, would it not be cheaper to just sign contracts with QF, Cobham, QQ, etc?

Buying an airline to ensure continuity of service seems a bloody expensive way of going about business...
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Old 30th Apr 2020, 23:40
  #242 (permalink)  
 
Join Date: Oct 2013
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Originally Posted by Colonel_Klink View Post
If that is his interests, would it not be cheaper to just sign contracts with QF, Cobham, QQ, etc?
Buying an airline to ensure continuity of service seems a bloody expensive way of going about business
I mentioned part ownership. Buying into the airline ensures he gets a say. Contracts can be broken. Virgin Australia had many contracts in place, those people are now listed as creditors and have been stiffed. Andrew is a billionaire also, billionaires usually have money to burn. He would be buying ‘peace of mind’. And it doesn’t mean he can’t still have some contracts in place with other entities such as QF, Cobham et al. It’s all speculative and I’m just offering up a hypothesis to address why a mining billionaire might be interested in buying or buying into a dud airline. His interests certainly wouldn’t be in flying a once per week service from Brisbane to Longreach in summer so that retiree’s could admire old 747’s in 45 degree heat! And an investment of $50, $100, $200m is loose change to this bloke.
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Old 1st May 2020, 00:08
  #243 (permalink)  
 
Join Date: Apr 2020
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Its a thought bubble
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Old 1st May 2020, 00:09
  #244 (permalink)  
 
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Originally Posted by Blackout View Post
Twiggy,

Didnt he just buy 10 MILLION Corona testing kits from China? What a top guy! Your safe now.

Although you might test positive to CCP dissidence. Careful.
Yep. Then charged the government for them. That's hardly philanthropy.
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Old 1st May 2020, 00:13
  #245 (permalink)  
 
Join Date: Apr 2020
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P377 - Forrest has absolutely no interest in keeping pilots in the air as a primary consideration
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Old 1st May 2020, 09:21
  #246 (permalink)  
 
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Originally Posted by TCAS v2 View Post
P377 - Forrest has absolutely no interest in keeping pilots in the air as a primary consideration
TCAS. Read my post again. I never said he was interested in keeping Pilots in the air. I said he might be interested in keeping his mines operating by part owning an airline. That would be a bi-product of where his primary interests lay. A bonus though for people looking to fly planes for a living.
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Old 1st May 2020, 09:44
  #247 (permalink)  
 
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Twiggy is just after VARA. Nothing else. Vultures circling to pick at the carcus.
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Old 2nd May 2020, 01:55
  #248 (permalink)  
 
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The AFR has an article today "confirming" that Virgin will come out the other side, albeit in a different and slimmed down form.

https://www.afr.com/chanticleer/virg...0200501-p54oyz
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Old 2nd May 2020, 04:23
  #249 (permalink)  
 
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Originally Posted by Con Catenator View Post
The AFR has an article today "confirming" that Virgin will come out the other side, albeit in a different and slimmed down form.

https://www.afr.com/chanticleer/virg...0200501-p54oyz
I thought VA was in trouble and broke, luckily the AFR confirmed everything will be OK.
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Old 2nd May 2020, 06:41
  #250 (permalink)  
 
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They did? I couldn't read the article, as usual it's behind a pay wall, why do people continue to post such links?
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Old 2nd May 2020, 07:10
  #251 (permalink)  
-41
 
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https://www.afr.com/chanticleer/virg...0200501-p54oyz


Virgin won't be a repeat of Ansett

May 2, 2020 – 12.00am



It is now apparent Virgin will survive under new ownership and continue to provide robust competition to Qantas.

Before the Virgin Australia collapse last month your Rooster warned the insolvent airline could end up in the same sort of messy liquidation as Ansett Airlines in 2001.

This dire prediction is turning out to be totally wrong. It is now apparent Virgin will survive under new ownership and continue to provide robust competition to Qantas in the domestic market.

Administrator Vaughan Strawbridge from Deloitte still has to find a buyer but it is clear that a deal can be done once the $1.99 billion unsecured debt owed to bondholders is either converted to equity or written down to 2Ę in the dollar.

Some close observers of the insolvency process believe a market solution could involve as little as $300 million in working capital being pumped into the business. The proviso to this is Strawbridge having tough negotiations over airport leases and airline leases.

There are many reasons why the Virgin collapse is totally different to the Ansett implosion which put 16,000 people out of work and left Australia's transport infrastructure in a mess for years.


First, Ansett went under with no money in the bank. Steve Parbery, who with David Crawford was an adviser to the Howard government on the Ansett collapse, says there was barely enough money to last one weekend.

Virgin went into administration with more than $500 million in cash. Its board of directors was conservative and prudent.

They made sure there was more than enough money to cover the $450 million in liabilities owed to the company's 10,000 employees.

When Ansett went bust it owed $800 million to its employees. The government ended up covering this debt through the Howard government's creation of a scheme called the General Employee Entitlements and Redundancy Scheme (GEERS).

GEERS was replaced by the Fair Entitlements Guarantee (FEG) scheme in 2012. It sits in the background as a reminder that there is a $450 million debt that must be covered by the federal government if Virgin goes into liquidation.

Ansett was so badly run, so complex and so poorly prepared for collapse that there was really nothing of substance for the administrators to sell. Parbery says its best asset was an investment in property at Sydney Airport.

It sounds bizarre but there could hardly be a better time for an airline to go into administration. COVID-19 means most of its planes have been mothballed, no one is buying tickets and the largest secured creditors – airline lessors – are not in a strong bargaining position.

The new owners of Virgin will have a perfect opportunity to restructure the business by reducing the numbers of planes it leases and likely cutting the workforce by about 25 per cent. The loss of 2500 jobs will be devastating for those concerned but the accompanying chart shows why this is necessary.


The federal government clearly wants Virgin to remain a full service airline but the company was unable to make money from this strategy under former chief executive John Borghetti.

In its earlier iteration as Virgin Blue, the business was consistently profitable under chief executive Brett Godfrey. But it is unlikely Prime Minister Scott Morrison will be happy for Virgin to return to being solely a discount airline.

The government's adviser on the Virgin collapse, former Macquarie Group CEO Nicholas Moore, has the tricky task of assessing all the bids and making recommendations that fit the national interest.

Whoever takes over the Virgin cockpit not only will have to meet the requirements of the government, they will have to fight tooth and nail against Qantas, a company with strong free cash flow and double the market share.

The question is: to what extent will the government intervene to ensure Qantas does not radically expand its market share and capitalise on Virgin's cathartic change in ownership?

Last edited by Senior Pilot; 2nd May 2020 at 09:14. Reason: Add url and quote
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Old 2nd May 2020, 08:34
  #252 (permalink)  
 
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Old 2nd May 2020, 08:40
  #253 (permalink)  
 
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So around 25% of the workforce could be cut according to the Financial Review. Maybe Scurrah and the administrators should stop pushing the Ďno planned redundanciesí narrative when in reality itís up to the new owners as to the direction the company takes. False hope does no one any good.

I also think that those who believe redundancies arenít a possibility at QF group are delusional. Just look at Air NZ. 300 jet pilots and 100 regional sacked this week.
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Old 2nd May 2020, 09:01
  #254 (permalink)  
 
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....the sausage sizzle guys
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Old 2nd May 2020, 09:25
  #255 (permalink)  
 
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Originally Posted by John Citizen View Post
That was funny as F$%k!
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Old 2nd May 2020, 10:00
  #256 (permalink)  
 
Join Date: May 2002
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I have tears streaming from eyes over that! That was gold!

I really needed that laugh with everything going on. Thank you.

Hopefully they wont do a BG and try and track the mastermind down..............

Last edited by Servo; 2nd May 2020 at 10:21.
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Old 2nd May 2020, 10:44
  #257 (permalink)  
 
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Funniest thing I have seen in years
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Old 2nd May 2020, 11:08
  #258 (permalink)  
 
Join Date: Oct 2014
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John citizen...Gold! Thank-you.
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Old 2nd May 2020, 13:42
  #259 (permalink)  
 
Join Date: Sep 2007
Location: Australia
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Originally Posted by ECAMACTIONSCOMPLETE View Post
So around 25% of the workforce could be cut according to the Financial Review. Maybe Scurrah and the administrators should stop pushing the Ďno planned redundanciesí narrative when in reality itís up to the new owners as to the direction the company takes. False hope does no one any good.

I also think that those who believe redundancies arenít a possibility at QF group are delusional. Just look at Air NZ. 300 jet pilots and 100 regional sacked this week.
The narrative is "no planned redundancies" whilst in administration. They haven't ever said anything beyond that.
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Old 3rd May 2020, 07:37
  #260 (permalink)  

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This is a step in the right direction if they want to restart. https://simpleflying.com/virgin-aust...-repossession/
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