"Virgin Australia Mk II could launch in as little as three months"
Join Date: Oct 2013
Location: New Zealand
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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.
Unless ScoMo comes to the party, it’s over. The fuel companies will be next. The Banks will be last.
Evertonian
Join Date: Jan 2006
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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.
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.
Join Date: Apr 2020
Location: On the FD
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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.
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.
Join Date: Apr 2011
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Wow. More as#holes out to protect themselves while airline staff head to Centerstink. I’m sure Kevin Brown from Perth will be proud of what he has started. Personally, they should make a statue of him out of **** and place it in the middle of Fremantle. As for Adelaide airport, shame on you. Another airport where Board and CEO should be punted.
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.
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.
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.
Join Date: May 2011
Location: BNE
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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.
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.
Join Date: Oct 2007
Location: Australia
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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.
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.
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.
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.
Join Date: Nov 2005
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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
And this guy was being touted as a possible suitor for Virgin ??? - I don't think so.
Well done Lindsay
Join Date: Jul 2007
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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
S28- BE
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
S28- BE