TBM

If it was not for foreign investors propping up Virgin at great financial expense to themselves Virgin would have been dead and buried for some time due to insolvency.

You may be aware it was necessary to borrow $425,000,000 from the 4 major shareholders less than 3 months ago to pay bills. Since then a further $159,000,000 has been received from the HNA Aviation Group. A major capital raising of possibly $1,000,000,000 will be necessary very soon and possibly initiated prior to 30/06/16.

I don't imagine pollies are too concerned about foreign airlines blowing their dough on the Australian aviation industry casino table. It's not exports that benefit us so much as the money paid in return, and Virgin is a neat little importer of foreign money.

Less than illustrious history and circumstances for the company Air NZ sold its Virgin Australia stake to..

http://www.afr.com/news/world/asia/c...0141210-124hsz

I don't have a problem with foreign investment . The whining that takes place when the Chinese try and buy a few cattle stations is what I meant. You can't take those out of the country .

It has still got me stuffed how the mailroom boy stays in place with the numbers like they are

ANZ buys their stake for 400+ Million
Sells for half.

:D

Yeah they should have learnt about investing in poor performing Aussie Airlines a long time ago.

Do not forget Air New Zealand were the largest shareholder in VAH and have only sold a part of their holding in VAH to the Nanshan Group.

There is a lot more to this story to follow during the next 12 months or so including a delisting from the ASX as I indicated in another thread on 30/03/16.

The "mailroom clerk" does not have a clue>>>>

Virgin Australia taps shareholders for $852 million, jobs shed in restructure - ABC News (Australian Broadcasting Corporation)

VAH shares are now down 60% since mid January 2016.

Debt covenants looking shaky !.

Shades of Custer to Sitting Bull : Surrender, we have you surrounded!

Here is the news:

Virgin to book big annual net loss
32 MINUTES AGOJULY 6, 2016
By Lilly VitorovichAAP
Virgin Australia is set for a big full-year loss after announcing its restructure will cost as much as $450 million.
Australia's second biggest airline has reaffirmed its guidance for pre-tax underlying profit of $30 million to $60 million, but its bottom line will be hit by costs and writedowns of between $410 million and $450 million.
That includes $100 million of fourth-quarter restructuring costs, and $155 million to $175 million of non-cash impairments associated with a three-year cost-cutting program announced by the carrier last month.
The remainder of the costs and writedowns confirmed on Wednesday include the $59.4 million already announced in the group's interim results, plus an additional $100 million to $115 million related to an overhaul of its fleet.

Isn't this what QF did? Big write down, doom & gloom all round. Then a surprising turn around the following year. If that is the case, Virgin will come back with a big profit next year. Nothing to worry about. :E

Oakape,
Yes they did, and NO they won't. But you knew that.......:}

Looks like pay freeze and new EBA's all round then, just like Qantas.

Yep, followed by big profit announcements. Sounds all to familiar :yuk:

Atlas, can't see any big profit announcements - that would mean they would have to actually make a profit! :)

hehe too true!! :p

The Qantas Sale Act requires a number of things to ensure the long-term viability of Qantas v.v. the national interest and to meet the obligations of International Air Services as per the Air Navigation Regulations.
The carrier must be 51% Australian owned, it must maintain it's principal business headquarters and operational base in Australia, the Chairman must be an Australian Citizen as must the CEO (not sure about the last one but I think the CEO does have that requirement), the trading name used for "... international passenger services offered by the Company..." must include the expression 'QANTAS'. Foreign ownership is thus capped at 49% and originally any airline or other consortia holding an interest was limited to 35% with any single airline limited to 25% but these last two have been removed and there is just the 49% foreign cap now. The Board is required to review the register monthly and any shares in excess of the 49% cap are to be stripped of voting rights which then vest in the Chairman and the Board while those shares are compulsorily acquired or subject to forced divestment to ensure the 49% cap is maintained. It is arguable that the old 25/35 limit is not required now as many investment banks and other institutions like the Commonwealth Bank are significant shareholders so the likelihood would seem slim that an airline would be able to get more than 20%.
The Commonwealth of Australia retains one single share in Qantas Airways Limited called the 'Golden Share' which provides special rights and privileges to the Commonwealth to veto any decision of the Board or Management which is not in the national interest. Costello chose not to exercise it though when APA were looking to aggressively acquire Qantas so it would seem to depend on the will of the Minister at the time.