Indigo and Virgin
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Indigo and Virgin
I hear Bill is circling. A good time to take control. They have been loitering for years.
The Tiger brand would clearly remain under such ownership. Longer term would give them the option to increase its footprint, and for once, run by people who know what they are doing. It was Indigo who initiated the Tiger Australia launch in 2007 but lost its share in the IPO soon after.
Would enable them to sell the 737 fleet to clear the a large chunk of debt. 500 A320/1 on order.
Either they go it alone, or team up with SQ/Virgin who would have a tiny minority.
The Tiger brand would clearly remain under such ownership. Longer term would give them the option to increase its footprint, and for once, run by people who know what they are doing. It was Indigo who initiated the Tiger Australia launch in 2007 but lost its share in the IPO soon after.
Would enable them to sell the 737 fleet to clear the a large chunk of debt. 500 A320/1 on order.
Either they go it alone, or team up with SQ/Virgin who would have a tiny minority.
Last edited by wheels_down; 25th Apr 2020 at 02:08.
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.
He could send 10-20 odd Neo’s downunder with a matter of months. Would be a very quick re-activation.
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.
He could send 10-20 odd Neo’s downunder with a matter of months.
To get that to work you would have to import labour, probably another bunch of expats, whilst all the redundant Virgin Pilots are in the dole queue which isn't a good look politically. Once you have some operational experience, then CASA might let you expand and hire non rated pilots.
The only 'quick' solution operationally will be with a 737NG, anything else will take years.
And crewed by whom and on what AOC? Good luck getting CASA to allow a new type flown by noone with type experience. I highly doubt that anyone from Jetstar or QF are going to resign from there to help a start up operator.
To get that to work you would have to import labour, probably another bunch of expats, whilst all the redundant Virgin Pilots are in the dole queue which isn't a good look politically. Once you have some operational experience, then CASA might let you expand and hire non rated pilots.
The only 'quick' solution operationally will be with a 737NG, anything else will take years.
To get that to work you would have to import labour, probably another bunch of expats, whilst all the redundant Virgin Pilots are in the dole queue which isn't a good look politically. Once you have some operational experience, then CASA might let you expand and hire non rated pilots.
The only 'quick' solution operationally will be with a 737NG, anything else will take years.
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And crewed by whom and on what AOC? Good luck getting CASA to allow a new type flown by noone with type experience. I highly doubt that anyone from Jetstar or QF are going to resign from there to help a start up operator.
And crewed by whom and on what AOC? Good luck getting CASA to allow a new type flown by noone with type experience. I highly doubt that anyone from Jetstar or QF are going to resign from there to help a start up operator.
To get that to work you would have to import labour, probably another bunch of expats, whilst all the redundant Virgin Pilots are in the dole queue which isn't a good look politically. Once you have some operational experience, then CASA might let you expand and hire non rated pilots.
The only 'quick' solution operationally will be with a 737NG, anything else will take years.
To get that to work you would have to import labour, probably another bunch of expats, whilst all the redundant Virgin Pilots are in the dole queue which isn't a good look politically. Once you have some operational experience, then CASA might let you expand and hire non rated pilots.
The only 'quick' solution operationally will be with a 737NG, anything else will take years.
They would buy the Tiger AOC and slots of the Administrators. They don’t need anything else, Tiger is largely a leased and contracted business. Out of everyone sitting on ‘the list’ to buy Virgin, they are the only one who would go down this path of pursuing the LCC.
The A320 is still on the Tiger AOC. They will bring in their own leased A320s. They have 400+ on order. NEO AOC change is minimal.
The previous Tiger Airbus rated Pilots are available. They don’t need to import Frontier Pilots in on reduced terms. 99% of Tiger Airbus Pilots will sign a deal tomorrow to join.
It was Indigo’s call to start Tiger in 2007. They have had dialogue with the regulator here previously.
Last edited by PoppaJo; 27th Apr 2020 at 05:12.
And what would St Nick say about this proposal?
Liquidation
FIRB
National Interest
My hunch... The scale of operation would have to be so compelling to negate the aforementioned considerations. The sum of Virgins parts are worth less than Velocity FF. How would this proposal gain the required creditor support, let alone the Canberra suits?
Liquidation
FIRB
National Interest
My hunch... The scale of operation would have to be so compelling to negate the aforementioned considerations. The sum of Virgins parts are worth less than Velocity FF. How would this proposal gain the required creditor support, let alone the Canberra suits?
And crewed by whom and on what AOC? Good luck getting CASA to allow a new type flown by noone with type experience.
They would buy the Tiger AOC and slots of the Administrators.
Why on earth would anyone invest in Virgin, if Indigo wants a slice of the market they can just wait for Virgin to be wrapped up and poach the parts they want before starting a new operation with No debt.
Evertonian
Is this thread a joke? Are you all actually saying IndiGo would make a bid for Virgin? Anybody actually worked for IndiGo or understand old Wolfgangs grand Europe plan?
No offence but this is a pipe dream of epic proportions on many levels.
No offence but this is a pipe dream of epic proportions on many levels.
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For clarity who are you guys actually talking about?
IndiGo (InterGlobe Aviation) or the Parent company?
IndiGo (InterGlobe Aviation) or the Parent company?
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Indigo teamed up with Ryan Group in 2002 on the hunt to launch a LCC in Asia. They got SQ onboard and launched Tiger in 2004.
Now own have Frontier, Wizz, Volaris. 450 Neos on order.
Now own have Frontier, Wizz, Volaris. 450 Neos on order.
In today’s SMH claims Indigo offered to buy out EY/HNA/Nashan in 2018 who agreed but SQ/SRB wouldn’t let it happen