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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 25th Apr 2020, 11:31
  #101 (permalink)  
 
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Originally Posted by JetFixer
They can't pay their debts when asking employees to take leave at rates of less than 100%
Sorry but not correct. Check your EBA for Stand Down Provisions.
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Old 25th Apr 2020, 12:24
  #102 (permalink)  
 
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Adelaide airport block aircraft
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Old 25th Apr 2020, 12:32
  #103 (permalink)  
 
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Originally Posted by John Citizen
Wow. More as#holes out to protect themselves while airline staff head to Centerstink. Iím sure Kevin Brown from Perth will be proud of what he has started. Personally, they should make a statue of him out of shit and place it in the middle of Fremantle. As for Adelaide airport, shame on you. Another airport where Board and CEO should be punted.
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Old 25th Apr 2020, 13:03
  #104 (permalink)  
 
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These two bastards Perth and Adelaide, will trigger an avalanche of creditors refusing further supply. It’s over. The airports thought they could get in early and get preferential treatment. That was never going to happen.

Unless ScoMo comes to the party, it’s over. The fuel companies will be next. The Banks will be last.
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Old 25th Apr 2020, 14:43
  #105 (permalink)  
 
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BNE will be next and guess who is on the board? He could't could he.
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Old 25th Apr 2020, 15:05
  #106 (permalink)  

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Originally Posted by eiffel
Any pilots redundancies at Virgin Australia or is it just Tiger air? (which fleet?)
Tiger. Both.
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Old 25th Apr 2020, 21:03
  #107 (permalink)  
 
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Let’s not forget all of the NZ Based crew some of whom had been at Vigin for 10+ years.
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Old 25th Apr 2020, 23:22
  #108 (permalink)  
 
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Perth and Adelaide both blocking virgin aircraft......

Welcome to the realities of complex voluntary administrations - this is not unexpected and will be probably be resolved through the individual aircraft lessors and the airports. If any of the affected aircraft are owned by Virgin, then the airports will have to deal directly with the administrators. In the case of leased aircraft, it will mean that these aircraft are effectively removed from the Virgin fleet as of now.

Either way, it goes to show that "alice in wonderland" perceptions of a nice smooth transition from Virgin to a restructured operation on the other side are in no way connected to the reality of what's happening.

As said above, actions such as these 2 airports have taken are significant trigger points and can initiate a run of creditor claims and refusal of supply, which will mean the only option is receivership and sale of assets at effectively fire sale prices.

One of the main reasons the administrators were talking up this "fantastic" restructure was the value of the frequent flyer program. This value will be zero if receivership goes ahead. There is also some doubt that it is fully funded.

Additionally the $ 6.8 billion debt is expected to rise even further as creditor lists and claims are finalised. This is significantly more than the touted $ 5 billion.

This is all a huge problem for the administrators who will have to act quickly to get the best out of a terrible situation.
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Old 25th Apr 2020, 23:32
  #109 (permalink)  
 
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Originally Posted by Dale Hardale
Perth and Adelaide both blocking virgin aircraft......

Welcome to the realities of complex voluntary administrations - this is not unexpected and will be probably be resolved through the individual aircraft lessors and the airports. If any of the affected aircraft are owned by Virgin, then the airports will have to deal directly with the administrators. In the case of leased aircraft, it will mean that these aircraft are effectively removed from the Virgin fleet as of now.

Either way, it goes to show that "alice in wonderland" perceptions of a nice smooth transition from Virgin to a restructured operation on the other side are in no way connected to the reality of what's happening.

As said above, actions such as these 2 airports have taken are significant trigger points and can initiate a run of creditor claims and refusal of supply, which will mean the only option is receivership and sale of assets at effectively fire sale prices.

One of the main reasons the administrators were talking up this "fantastic" restructure was the value of the frequent flyer program. This value will be zero if receivership goes ahead. There is also some doubt that it is fully funded.

Additionally the $ 6.8 billion debt is expected to rise even further as creditor lists and claims are finalised. This is significantly more than the touted $ 5 billion.

This is all a huge problem for the administrators who will have to act quickly to get the best out of a terrible situation.
Is there any evidence of Adelaide airport doing this, other than the report from Sky News? Photos? We have Photos from Perth, but I can find nothing on Adelaide.
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Old 25th Apr 2020, 23:36
  #110 (permalink)  
 
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Originally Posted by Paragraph377
Wow. More as#holes out to protect themselves while airline staff head to Centerstink. Iím sure Kevin Brown from Perth will be proud of what he has started. Personally, they should make a statue of him out of shit and place it in the middle of Fremantle. As for Adelaide airport, shame on you. Another airport where Board and CEO should be punted.
Van de grief at BNE and his new found friend, the Italian will be the next
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Old 25th Apr 2020, 23:42
  #111 (permalink)  
 
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Originally Posted by Turnleft080
BNE will be next and guess who is on the board? He could't could he.
I wouldnít put it past him!
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Old 25th Apr 2020, 23:45
  #112 (permalink)  
 
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Originally Posted by Dale Hardale
Perth and Adelaide both blocking virgin aircraft......

This is all a huge problem for the administrators who will have to act quickly to get the best out of a terrible situation.
In theory yes a huge problem. As youíve seen from my earlier post I donít hold administrators/liquidators in a great light. Just look at the piracy during the AN liquidation. I am not saying the current administrators donít care and are not trying to do the best job. Only problem is the longer they are there the less cash in the pile for anyone.
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Old 26th Apr 2020, 00:01
  #113 (permalink)  
 
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Unless Perth and Adelaide can be persuaded to back off by tonight (Sunday) then Virgin is finished in my opinion. This is because you need to convince ALL creditors that their interests are better served by company reconstruction than bankruptcy. The two airports have broken ranks in the belief perhaps that they can blackmail Virgin by depriving them of the use of their aircraft - which I think may be illegal anyway.

This has to be reversed or the rest of the creditors will try and get in for preferential treatment. Once that happens they all attack and the only solution then is bankruptcy.

Its a bit like a wounded elephant with a tree full of vultures watching. Once one or two vultures successfully have a go, the rest of the flock will descend.

P.S. I heard rumors of piracy in the Ansett debacle. Stories of pallets full of rotables going missing as clueless accountants stood by, not knowing the value of these parts. I don’t know if it was ever proven.
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Old 26th Apr 2020, 00:42
  #114 (permalink)  
 
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One of the first things the administrators do it take a full inventory of all the stock on hand. Nothing can be returned to the suppliers, however if the supplier also owes money to the company in administration that still has to be paid in full. I'm not entirely sure about the legality of airports impounding aircraft once the company's in administration. I doubt it's a coincidence this just happens to occur on a long weekend when the courts are closed.
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Old 26th Apr 2020, 00:46
  #115 (permalink)  
 
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Originally Posted by Sunfish
Unless Perth and Adelaide can be persuaded to back off by tonight (Sunday) then Virgin is finished in my opinion. This is because you need to convince ALL creditors that their interests are better served by company reconstruction than bankruptcy. The two airports have broken ranks in the belief perhaps that they can blackmail Virgin by depriving them of the use of their aircraft - which I think may be illegal anyway.

This has to be reversed or the rest of the creditors will try and get in for preferential treatment. Once that happens they all attack and the only solution then is bankruptcy.

Its a bit like a wounded elephant with a tree full of vultures watching. Once one or two vultures successfully have a go, the rest of the flock will descend.

P.S. I heard rumors of piracy in the Ansett debacle. Stories of pallets full of rotables going missing as clueless accountants stood by, not knowing the value of these parts. I don’t know if it was ever proven.
are the blocked aircraft owned by VA or leased ? If leased who cares ? Link between a leased aircraft & VA now controlled by administrator is tenuous. Surely you can't hold someone elses asset due to debt of another. Think all leases have ended now, (since admin). Can anyone confirm.
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Old 26th Apr 2020, 01:16
  #116 (permalink)  
 
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Originally Posted by 2020Balance
Van de grief at BNE and his new found friend, the Italian will be the next
Well at least at the start of this BNE SYD and MEL were reported as offering free parking for the airlines. I imagine it's still the case.
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Old 26th Apr 2020, 01:52
  #117 (permalink)  
 
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Originally Posted by BNEA320
Think all leases have ended now, (since admin). Can anyone confirm.
Leases still active. From the affidavit:

67. Due to:
(a) the very large number of the Leases;
(b) the number of counterparties to the Leases;
(c) the significant liabilities associated with certain of the Leases;
(d) ongoing uncertainty as to the precise nature of the property that is the subject of the Leases and the obligations associated with the Leases;
(e) the number of companies of the Virgin Group that are in administration; and
(f) the practical issues arising in relation to the conduct of the Administration as a result of COVID-19,
reaching a determination as to the future status of the Leases and identifying any further arrangements that may be relevant has been since their appointment, and will continue to be, a very significant task for the Administrators,.
68. At present, the Administrators have been unable (and will, before 28 April 2020, not have been able) to form a view as to whether it is necessary or desirable, in the interests of preserving the value of the Business, to exercise rights over the Leases

They have been given one month before lease liability transfers to the administrator.
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Old 26th Apr 2020, 01:57
  #118 (permalink)  
 
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It shows how inept you must have to be to qualify to be on an Airport board,
Trying to sabotage your best bet at using your half empty terminals in the short term by blocking in leased, unused aircraft. Brilliant! It is actually the first thing that has got Qantas and Virgin working together again.
And if I was a bored American aircraft lease owner with no money coming in for my aircraft I would have a crack at suing the relevant airport boards for a few million dollars.
I have a feeling there will be a couple of Airport boards getting a few calls from the politicians this weekend and the nonsense will stop....but the damage has been done.
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Old 26th Apr 2020, 02:14
  #119 (permalink)  
 
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Well at least at the start of this BNE SYD and MEL were reported as offering free parking for the airlines
Fox is charging huge sums for Avalon airport parking - what an example to set.

And this guy was being touted as a possible suitor for Virgin ??? - I don't think so.

Well done Lindsay
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Old 26th Apr 2020, 02:34
  #120 (permalink)  
 
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this impounding aircraft kerfuffle

Would, 'reasonably expect' it to be resolved in the morning once they/the Administrators have some Jurisdiction online......

This situation is not without precedent................., I believe.

Do bare in mind that, I 'believe' Monday the 27th to be a Public Holiday (Anzac Day) in W.A./& the ACT.

Rgds
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