Australia, New Zealand & the Pacific Airline and RPT Rumours & News in Australia, enZed and the Pacific

Virgin 3.0

Old 14th Oct 2020, 08:53
  #401 (permalink)  
 
Join Date: Apr 2010
Location: Asia
Posts: 981
How ‘budget’ are they actually talking here?

Carla has clearly moved into HQ. Watch all the Jetstar executives under her reign who moved on with her now appear at Southbank.

These arsewipes will probably put clauses in his exit remuneration around not saying zilch on departure so you might not hear much, well perhaps after it all caves in at some point down the track.
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Old 14th Oct 2020, 08:58
  #402 (permalink)  
 
Join Date: Feb 2011
Location: Oz
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She is most certainly in the building. Been there done that seen that never again thanks. Enjoy.
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Old 14th Oct 2020, 09:01
  #403 (permalink)  
 
Join Date: Dec 2001
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Quelle surprise.
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Old 14th Oct 2020, 10:00
  #404 (permalink)  
 
Join Date: Feb 2002
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Originally Posted by Section28- BE View Post
More coverage, ex ABC News: "Virgin CEO Paul Scurrah's future in doubt as new owner Bain Capital rumoured to move airline more low-cost"

Link here: https://www.abc.net.au/news/2020-10-...pital/12766862

A brief Extract from the article:



and here:



rgds
S28- BE
Totally predictable. Some need to remove the rose tinted glasses and watch how Bain remakes the airline their way...remember the Golden Rule is 'the man with the gold makes the rules'!

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Old 14th Oct 2020, 10:15
  #405 (permalink)  
 
Join Date: Jun 2019
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QF were worried about a competitor Haha.

Can’t wait for REX to start complaining about not been given a fair go. Seems VA and JQ will be the low cost carriers and battling it out.

Nice play by VA with the attempt at buisness class After administration or maybe a test for low cost business class who doesn’t love 2mn noodles.
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Old 14th Oct 2020, 10:22
  #406 (permalink)  
 
Join Date: Dec 1999
Location: I prefer to remain north of a direct line BNE-ADL
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I’m actually shocked that anyone is surprised by this development...These Private equity firms without fail have a history of taking over, selling anything tangible, slash conditions and sell out 1-2 years before the company goes bankrupt, Just look at the Toys R Us debacle. Virgin is doomed if Bain get their way.
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Old 14th Oct 2020, 10:29
  #407 (permalink)  
 
Join Date: Feb 2002
Location: NSW
Posts: 7
TWU forget that they neither have a share of VA nor true mgt position. They have an advisory input at best which will be tossed out with the rubbish...

The Unions here in Qld have publicly said they will tell Palla-chook who will be in her Cabinet! Raddish might win this time...
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Old 14th Oct 2020, 10:35
  #408 (permalink)  
 
Join Date: Jun 2019
Location: Denmark
Posts: 454
So where does Queen P 200million fit in with all this?!
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Old 14th Oct 2020, 11:07
  #409 (permalink)  
 
Join Date: Feb 2002
Location: NSW
Posts: 7
From inside the 1 William Street fortress I'm aware that there much sucking of teeth given the timing and the looming election...
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Old 14th Oct 2020, 11:12
  #410 (permalink)  
 
Join Date: Aug 2020
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Originally Posted by TBM-Legend View Post
TWU forget that they neither have a share of VA nor true mgt position. They have an advisory input at best which will be tossed out with the rubbish...

The Unions here in Qld have publicly said they will tell Palla-chook who will be in her Cabinet! Raddish might win this time...
I was of the understanding that she doesn't choose her cabinet? She can choose the portfolio, but the party chooses cabinet members depending on the various factions.
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Old 14th Oct 2020, 11:24
  #411 (permalink)  
 
Join Date: May 2016
Location: Sunshine Coast
Posts: 267
Boy, that escalated quickly.

https://www.theaustralian.com.au/bus...bb9faf81c9a2ac

Plans to change Virgin, and airline boss Paul Scurrah
By ROBYN IRONSIDE, AVIATION WRITER
OCTOBER 14, 2020

Virgin Australia chief executive Paul Scurrah has had a dramatic falling-out with the company’s new owners over plans to relaunch the airline as a low-cost carrier.

Bain Capital, which purchased Virgin after it collapsed in April with debts of $6.8bn, is expected to install former Qantas executive Jayne Hrdlicka to run the company.

Key unions, however, are refusing to negotiate with Bain over new workplace agreements, describing the replacement of Mr Scurrah as a “serious and worrying development”.

The Transport Workers Union has a long history of clashing with Ms Hrdlicka, but has a better relationship with Mr Scurrah, who is close to senior figures in Queensland Labor.

The downmarket shift for Virgin comes despite Bain’s earlier assurances that it would not ditch its network of domestic lounges aimed at business travellers, or overseas operations.

Mr Scurrah had made it clear he wanted Virgin to continue as a full-service carrier.

Despite backing this plan ahead of the September 4 creditors’ meeting which approved the sale of the airline to Bain, the private equity firm is now understood to have reconsidered its relaunch strategy.

The shift became apparent earlier this week after “complimentary snacks” and wine supplies for business travellers ran out when expired catering contracts were not renewed.

Mr Scurrah, in comments earlier on Wednesday, refused to comment on whether he would be replaced by Ms Hrdlicka, who ran Qantas’s low-cost carrier Jetstar and worked on Bain’s bid for Virgin. “There’s been ongoing speculation for some and I’ve never been in the habit of commenting on speculation,” Mr Scurrah said.

Virgin declined to answer questions on Wednesday, while Bain did not respond to requests for comment.

Michael Kaine, the TWU’s national secretary, said “the ink is not yet dry on the sale of Virgin and it appears that Bain Capital is behaving as we feared”.

“We are suspending negotiations on enterprise agreements while we seek clarification on these developments.

“For our part, we are engaged in talks in good faith.

“If the plan and scope of the airline as outlined in August by Bain Capital has already been scrapped, then this is a serious betrayal that must be addressed.”

The TWU and other unions had been working with the airline to finalise new workplace agreements by the end of the month.

Flight Attendants Association of Australia secretary Teri O’Toole said unions had not been advised of any changes to management. “We would obviously be very disappointed, as would most of the Virgin employees, if Paul Scurrah was not at the helm because he’s certainly been a respected leader since being appointed,” she said.

Virgin flagged relaunch plans in early August, intending to simplify its fleet to a single aircraft type, Boeing 737s.

Mr Scurrah said 3000 of the company’s 9000 staff would be made redundant, but Bain Capital had agreed to restart international flights when possible and keep open the airline’s network of business lounges. Virgin also closed its budget Tigerair brand.

The TWU’s Mr Kaine has previously flagged opposition to Ms Hrdlicka, who was expected to sit on the new Virgin board, because of a difficult relationship between the union and Qantas relating to a 2011 shutdown and pay freezes.

Virgin’s sale to Bain is due to be finalised at the end of the month, when all shares in the company will be formally transferred to the firm.

The Queensland government has committed $200m to the company, conditional on the airline remaining headquartered in Brisbane.

Discussions with British billionaire Richard Branson’s Virgin Group over a possible investme nt and a new trademark licensing agreement are continuing.
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Old 14th Oct 2020, 11:29
  #412 (permalink)  
short flights long nights
 
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Wow! This is happening quickly.Looks like Virgin will become another LCC.
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Old 14th Oct 2020, 11:32
  #413 (permalink)  
 
Join Date: Jul 2007
Location: BAO
Posts: 535
Originally Posted by Ragnor View Post
So where does Queen P 200million fit in with all this?!
Without, doing a 'Job' on 'it'- but, from memory and as 'was' published in the Media-

About, $20M is an Equity Buy-In, the balance $180M is a Loan facility (of 'some' description) that, shall return 7% for Tax-Payers, Apparently!!!!- according to The (current) Queensland Treasurer....

rgds all/the best
S28- BE

Oh, Stuff-It.... here, 'You Do Go'- ex 5 October, as Posted back then:

Article link here: https://www.news.com.au/travel/trave...7c13aba6f74872

Extract (Bolding):

Queensland Government throws $200m at Virgin Australia to keep headquarters

The Queensland Government has thrown millions of dollars at Virgin Australia to keep the airline’s headquarters in the sunshine state.

Gerard Cockburn-
NCA NewsWire October 5, 2020 12:47pm

Queensland poised to seal Virgin Australia deal

The Queensland government is expected to announce a deal on Monday to keep the Virgin Australia headquarters on the Sunshine Coast.The Queensland Government has confirmed it will invest millions of dollars in Virgin Australia to ensure the embattled airline remains in the sunshine state for at least the next decade.

At a Boeing testing facility in Brisbane’s west on Monday, Premier Annastacia Palaszczuk confirmed the Queensland Investments Council (QIC) will inject $200 million as part of Virgin’s restructuring plan set-up by new owners Bain Capital.

The deal, which comprises of both an equity investment and debt loans provided by the QIC to Virgin, is an agreement to keep the company’s headquarters in Brisbane for the next 10 years.

Premier Annastacia Palaszczuk confirmed the Queensland Investments Council (QIC) will inject $200 million as part of Virgin’s restructuring plan set-up by new owner’s Bain Capital. Queensland Treasurer Cameron Dick said: “QIC will sign an agreement with Bain [Capital] today to finalise our commitment to securing Virgin in Queensland”.

Mr Dick said the deal does not safeguard future jobs at the major airline, but would ensure two airlines would continue to operate across the country.

“We don’t run the airline,” Mr Dick said.

“This airline was going into administration and may very well have collapsed. We stepped up to the plate and supported this airline.”

Approximately 10 per cent of the funding will be through a capital investment with the remainder of support facilitated by debt loans.

Mr Dick also noted the government’s stake in Virgin would provide a 7 per cent return of investment for Queenslanders.

“Without competition, monopoly pricing would have crushed regional Queensland and that’s what we wanted to be signed on Monday.

Bain Capital is a US-based private equity firm which won the bid to take over Virgin Australia after it entered voluntary administration following the coronavirus pandemic grounding the aviation industry.

At the beginning of the pandemic, Virgin had a debt position of $6.8 billion.

Bain Capital is seeking to implement a significant cost cutting plan which has seen large staff cuts and a significant reduction in operating routes.
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Old 14th Oct 2020, 12:25
  #414 (permalink)  
 
Join Date: Jul 2008
Location: Australia
Posts: 446
With intrastate flying still being subsidised by government handout I'm not sure how they will be using the 56 aircraft. Qantas and Jetstar are still burning cash just doing what they are currently doing so the relaunched Virgin needs to have deep pockets just to stand still.
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Old 14th Oct 2020, 12:52
  #415 (permalink)  
 
Join Date: Jun 2012
Location: Sfo
Posts: 39
I wouldn’t want to see VA move back to its LCC roots especially considering its investment in a half decent (not quite QF) premium product. I do however think JH is the right person to lead VA and put a rocket under the Village folk and the rest of the business who think it’s still AN days and you can get away with a big pay cheque in a heavily unionised environment with minimal flexibility or productivity.

Qantas has even seen the light of how unproductive some parts of their business is and taken steps to change eg: the big generational decision to outsource some airport staff. If VA don’t have a hard nosed leader like JH to cut hard and change the culture by weeding our the legacy elements of the business, VA will fail once again.
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Old 14th Oct 2020, 12:58
  #416 (permalink)  
 
Join Date: Feb 2002
Location: NSW
Posts: 7
Originally Posted by Section28- BE View Post
Without, doing a 'Job' on 'it'- but, from memory and as 'was' published in the Media-

About, $20M is an Equity Buy-In, the balance $180M is a Loan facility (of 'some' description) that, shall return 7% for Tax-Payers, Apparently!!!!- according to The (current) Queensland Treasurer....

rgds all/the best
S28- BE

Oh, Stuff-It.... here, 'You Do Go'- ex 5 October, as Posted back then:

Article link here: https://www.news.com.au/travel/trave...7c13aba6f74872

Extract (Bolding):



A considerable amount of the "$200m" is through state payroll tax concessions and other fees and taxes set aside for a period. The Qld 'cash' comes in via QIDC...

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Old 14th Oct 2020, 13:58
  #417 (permalink)  
 
Join Date: Dec 2006
Location: australia
Posts: 746
Bain/V3 management haven't taken the keys to their not-so-shiny investment.... yet.

Whilst most unlikely walking away and claiming expenditure as a tax loss in their global operations could be a thought surely as is there ANYONE who's crystal ball can predict the upswing in domestic travel will occur?
Until then Bain/V3 management will have to pump in money for an uncertain amount of time - certainly not the amount of time they have initially assumed or expected.

All they ever wanted to do was get in and get out with their $$ in their perceived timeline, that appears increasingly unlikely and that must be pissing off Bain greatly.

Most interesting.
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Old 14th Oct 2020, 14:50
  #418 (permalink)  
 
Join Date: Sep 2019
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At the moment Bain is the only thing stopping Virgin being liquidated. Wish hard enough and it may happen. Bain aren't going to wait for ever for borders to open and interstate travel to get back to somewhere near normal.

Bain don't care about the millions already spent. They will walk once they see the $$$$ drop out.
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Old 14th Oct 2020, 15:13
  #419 (permalink)  
 
Join Date: Feb 2018
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Originally Posted by Superman1 View Post
If VA don’t have a hard nosed leader like JH to cut hard and change the culture by weeding our the legacy elements of the business, VA will fail once again.
you might want to ask the folk at JQ about JH’s leadership at the star.

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Old 14th Oct 2020, 15:38
  #420 (permalink)  
 
Join Date: Oct 2014
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Originally Posted by Arthur D View Post
you might want to ask the folk at JQ about JH’s leadership at the star.
Leadership! You have to be joking.....what a sad place Virgin is going to become.
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