Indigo and Virgin
PoppaJo: I have not seen the SMH story. My understanding is 1 of the 3 thought to be Nashan did not want to sell. This sank the plan as Indigo Partners were only interested in being a majority shareholder. Furthermore my understanding is SQ/SRB were not contacted.
Would be good for a lot of the tiger boys and girls. For the majority of the virgin pilots, would mean starting at the bottom (again) and getting another endorsement (again). But that is the way the merry go round that is aviation works here. That would all depend on the size of the operation as well.
Anyway, my money is on West Farmers making a bid as long as that outstanding debt from JBs little VA experiment doesn't keep growing.
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I struggle to see any player having a few hundred million to spend on an airline considering there is no end in sight as to when we can fly again especially Indigo who have their fingers in multiple aviation pies surely they're even hurting. I think Deloitte are pushing s$%t up a hill and giving false hope to all.
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If Virgin were to die, I think that’s where Indigo would come in, buy the below only, bring their own machines in.
Indigo would want the AOC, slots, terminals, branding, product, staff, Corp contracts, data. They wouldn’t want the aircraft or engineering. They will bring their own. That would suit the admin guys, as they can sell all Boeing assets.
No doubt would get a half a billon dollar grant from one of the states with a wide range of incentives.
That Alaska/JetBlue sort of model is exactly what they would go after.
Largely the product and branding isn’t the issue here. It’s the balance sheet is just screwed beyond belief.
If they can’t get Virgin, Bill will want his Tiger back. A dead Virgin will result in a large window of opportunity for the leisure pax. He could send 10-20 odd Neo’s downunder with a matter of months. Would be a very quick re-activation.
Indigo would want the AOC, slots, terminals, branding, product, staff, Corp contracts, data. They wouldn’t want the aircraft or engineering. They will bring their own. That would suit the admin guys, as they can sell all Boeing assets.
No doubt would get a half a billon dollar grant from one of the states with a wide range of incentives.
That Alaska/JetBlue sort of model is exactly what they would go after.
Largely the product and branding isn’t the issue here. It’s the balance sheet is just screwed beyond belief.
If they can’t get Virgin, Bill will want his Tiger back. A dead Virgin will result in a large window of opportunity for the leisure pax. He could send 10-20 odd Neo’s downunder with a matter of months. Would be a very quick re-activation.
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In regards to a Indigo Tiger only buyout, with a dead Virgin, September School Hols is a good time to kickstart. They would be able to pull some Neos out of Frontier to quickly start it up.
Pilots will probably need to take a ‘new startup’ pay cut 10-15% below JQ, but a job is a job.
I think it’s certainly probable. They have the AOC, past Tiger ownership experience spin to bypass any government doubters, aircraft ready, Sydney slots. And Airbus Pilots at the ready.
Tourism operators will be throwing a lot of cash around to boost their numbers, as well as States throwing hundreds of millions around with bazookas to protect egos. Win Win.
Pilots will probably need to take a ‘new startup’ pay cut 10-15% below JQ, but a job is a job.
I think it’s certainly probable. They have the AOC, past Tiger ownership experience spin to bypass any government doubters, aircraft ready, Sydney slots. And Airbus Pilots at the ready.
Tourism operators will be throwing a lot of cash around to boost their numbers, as well as States throwing hundreds of millions around with bazookas to protect egos. Win Win.
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neo? quick powerpoint and you're good. It's part of the development timeline of the type. Sharkets, motive fuel pumps et al. The neos have a couple of different operational procedures around engine start, but the way my operator has configured them the biggest differences are brake fans and where to put your phone....
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I struggle to see any player having a few hundred million to spend on an airline considering there is no end in sight as to when we can fly again especially Indigo who have their fingers in multiple aviation pies surely they're even hurting. I think Deloitte are pushing s$%t up a hill and giving false hope to all.
There will be winners and losers from this. Economic Darwinism and sound Management will prevail. The real arbiter of success in this brave new world of facemasks and TP hoarding is the banks. Money will be available; the banks will; back the winners, and the winners will thrive.
I hope this resolves for VA people, and I believe Indigo is very well positioned to succeed..
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For a start how many in VARA & Tiger fleets here with OZ rego ?
The public wouldn't know the difference between an up to 20+ yo A320ceo (with new paint/interior) & a new A320neo. The former would probably come at 1/4 or less, of cost to buy/lease a neo, but with higher maintenance costs. They probably could do maintenance somewhere cheap in asia, where they might even fly to. (when you consider Alliance fly all their Fokker jets to Bratislava for heavy maintenance)
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20 year old 320 with wingtip fence, vs a 2020 build Neo.
The fuel saving is about 25%- 28%
If Oil climbs above $100 later this decade, then they pay for themselves overnight.
The fuel saving is about 25%- 28%
If Oil climbs above $100 later this decade, then they pay for themselves overnight.
surely a big % of these neo orders will be postponed or cancelled, when so many A320 ceos being parked all over the world. How many ? 1000s maybe ? If not many 100s with stuff all demand.
For a start how many in VARA & Tiger fleets here with OZ rego ?
The public wouldn't know the difference between an up to 20+ yo A320ceo (with new paint/interior) & a new A320neo. The former would probably come at 1/4 or less, of cost to buy/lease a neo, but with higher maintenance costs. They probably could do maintenance somewhere cheap in asia, where they might even fly to. (when you consider Alliance fly all their Fokker jets to Bratislava for heavy maintenance)
For a start how many in VARA & Tiger fleets here with OZ rego ?
The public wouldn't know the difference between an up to 20+ yo A320ceo (with new paint/interior) & a new A320neo. The former would probably come at 1/4 or less, of cost to buy/lease a neo, but with higher maintenance costs. They probably could do maintenance somewhere cheap in asia, where they might even fly to. (when you consider Alliance fly all their Fokker jets to Bratislava for heavy maintenance)
Engineers have nightmares once they get to 10 years old let alone 20!
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There is a reason not many hang onto 20 year old Airbus machines. Because they are absolutely useless pieces of junk that can barely sit idle overnight without something going wrong. I wouldn’t even give them freighter conversions!
Engineers have nightmares once they get to 10 years old let alone 20!
Engineers have nightmares once they get to 10 years old let alone 20!
Look at Allegiant in USA. They bought a heap of old Mad Dogs for nothing (reportedly around US$1m each), didn't fly them hard, had lots of back up aircraft around the country, just in case. Used some for spares. (bit like Alliance & their old fokkers) They didn't even bother flying many at all on Tuesday, as why bother.
Just say you could lease an 8 yo A320 for a 1/4 of a near new one. So you could have (nearly) 4 for price of 1 newish one. Plan to 3 flying with 1 backup is huge % & 3 x numbers of seats that can sell. 3 x the frequency. Nearly as statement is a bit simplistic & doesn't take into account other factors.
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It was reported few years ago, that Southwests profits could be put down solely to their fuel hedging.
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Ref: Originally Posted by BNEA320 (bit like Alliance & their old fokkers)
Strewth 'Buster'- average 'fleet' age would be 'out-there' .............. given, 'they' have not made 'em for 'a' 1/4 of a century............, but 'yes'- gotya, and more power too you...., if you can 'Rock' that on here.
Given, 'the Band' is back together, thought- include Original Band image- Ref (acknowledgement) the C/M- Murdock Press...... etc. etc.
Original Band link here: https://cdn.newsapi.com.au/image/v1/...76f2?width=650
'Elwood' does appear 'somewhat'/ a tad 'peaky' for want of a term....!!!!
Wow- Ripper...!!!!
Rgds
S28- BE
Given, 'the Band' is back together, thought- include Original Band image- Ref (acknowledgement) the C/M- Murdock Press...... etc. etc.
Original Band link here: https://cdn.newsapi.com.au/image/v1/...76f2?width=650
'Elwood' does appear 'somewhat'/ a tad 'peaky' for want of a term....!!!!
Wow- Ripper...!!!!
Rgds
S28- BE