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-   -   Government Loan to Virgin Australia (https://www.pprune.org/australia-new-zealand-pacific/631164-government-loan-virgin-australia.html)

The Bullwinkle 18th Apr 2020 06:16


Originally Posted by Karunch (Post 10753870)
Lets see how AJ tries to squash the Chinese backing. A government loan to VA might look the more attractive option at the moment.

Exactly! If they do come in with their deep pockets, the Leprechaun will probably wish he'd loaned VA the $1.4 Billion himself! :}

VH-FTS 18th Apr 2020 06:24

Is it more likely the Chinese buyout story has been made up to play on Australia's current (and rampant) sinophobia to increase support for government funding?

TWT 18th Apr 2020 06:38

This Chinese buyout story originated in the Courier Mail and the source of the information is not given.

Other news sources merely parroted the Courier Mail.

It hasn't been repeated on many other online news sites, such as the ABC or even the SMH or The Age.

I think you could be right VH-FTS
nnnnnn
nnnnnn

directimped 18th Apr 2020 06:42

A good rule of thumb is to never believe anything you read in Rupert's rag.

Makes for good dunny paper if you run out.

normanton 18th Apr 2020 06:44

It’s a stupid threat none the less.

Even if it does turn out to be true, the government still gets the final say on a foreign takeover.

Pauline Hanson will love this.

Sue Ridgepipe 18th Apr 2020 07:27


Originally Posted by Turnleft080 (Post 10753824)
Confirming Queensland's contribution, State Development Minister Cameron Dick says it is imperative Australia has two airlines to support tourism, jobs and regional investment.
"If we're going to get through this pandemic with two national airlines ... then all governments need to come together to ensure that is the case," he told reporters in Brisbane.
"Queensland can't do this on its own. This is a national airline weathering a national crisis and it needs a national response which is why we're asking the Australian government to take the lead on this."
Mr Dick said Queensland's support was conditional on debt restructuring, shareholders and bondholders doing their bit.
The airline's headquarters would also need to remain in Brisbane and regional flights would need to continue.

So it's imperative Australia has 2 airlines according to Mr. Dick, but only if Virgin stays in Qld. Does this mean if they pack up and relocate to Melbourne suddenly we no longer need 2 airlines and the Qld government would no longer be interested in trying to save them?

B772 18th Apr 2020 07:58

Even EK are asking for "financial accommodation" from AMEDEO on existing leases for A380-800's and B777-300's.

ampclamp 18th Apr 2020 08:29

"Mr Dick said the Queensland funding was conditional on Federal Government backing, as well as debt restructuring, shareholders and bond holders doing their bit, the airline keeping its headquarters in Brisbane, and ongoing regional flights".

That's one way of promising money you know won't ever be delivered.

MickG0105 18th Apr 2020 08:37


Originally Posted by ampclamp (Post 10753975)
"Mr Dick said the Queensland funding was conditional on Federal Government backing, as well as debt restructuring, shareholders and bond holders doing their bit, the airline keeping its headquarters in Brisbane, and ongoing regional flights".

That's one way of promising money you know won't ever be delivered.

Spot on. It is a straight up and down political play that Palaszczuk and Dick know that they'll never have to deliver on. The conditions that they have stipulated for the offer mean that no other state is going to chip in and on its own, the $200 million is insufficient to make any difference to Virgin's future.

It is a typically cynical Palaszczuk play that allows her to claim 'Gee, we tried when others did nothing' bragging rights without there ever being a real prospect that they will have to dirty their hands with what is going to be a very messy administration.

Oh, and the Deputy Premier gets to retain her skiing holiday destination for being seen to be trying to help out her good friends, the Scurrahs.

601 18th Apr 2020 08:41


Queensland's Palaszczuk government confirmed it is providing $200 million to cash-strapped Virgin,
I didn't know that we had a money printing press in Qld.

VR-HFX 18th Apr 2020 08:46

Air China makes the most sense.
30% cross shareholding with CX Group.
Star Alliance.
Large operator of 738's
Offer Etihad, Branson, HNA and Nanshan 5-6 cents a share. SQ would probably stay. HNA & Nanshan may be part of a larger restructure of the airline industry in China.
Return all leased aircraft and replace as necessary with surplus a/c from own fleets.
Rebuild domestic services from a base fleet of 40-50X738's.
VARA to be sold to Alliance or J/V with Alliance.
Re-brand as Star Alliance Australia.
Maintain TransPac services -scrap Delta alliance for United.
Debt moved up the tree for renegotiation based on bigger asset pool and negotiating power.
Not sure about the 10% public float and Australian listing but sure something can be worked out to ensure maintenance of Australian traffic rights for any international services such as Transpac.

That may be overly simplistic but might well be the outcome if VAH goes into administration. The only difference with administration is that there would be a huge wastage of precious funds going to the administrator.

TBM-Legend 18th Apr 2020 08:48


Originally Posted by 601 (Post 10753986)
I didn't know that we had a money printing press in Qld.


The Qld printing press is, of course, rented...

Matt48 18th Apr 2020 08:57

How has VA not been trading while insolvent prior to Covid, they are $5B in debt,with minimal assets and $215M annual losses for a decade.
How to own a small airline....... start off with a large one.

Matt48 18th Apr 2020 08:58


Originally Posted by TBM-Legend (Post 10753992)
The Qld printing press is, of course, rented...

With lease payments printed off monthly.

2020Balance 18th Apr 2020 11:00

Heard Lucinda Gemmell has emptied her desk out and left the Village! Not many lifeboats left now while the band keeps playing. Who’s going to be in charge of hiring all the team specialists and oxygen thief’s now?

Brisbane Sinner 18th Apr 2020 11:21

Wow, she obviously isn’t interested in a Melbourne office view.

krismiler 18th Apr 2020 11:21

We all need to remember that this is the pilots RUMOUR network, not the pilots PROVEN FACTS network. Anyone who needs verifiable, concrete information would be better off getting their news from official press releases, and sources such as the ASX.

In a situation such as this, there are any number of things which could happen and it's entirely reasonable to speculate on a range of possible outcomes. There are news reports which have differing points of view depending on who owns the agency involved and some of their sources may be more or less accurate than their competition. Those who know for sure aren't talking, and those who are talking don't know for sure.

Let's not take anything personally, I'm sure the vast majority here want Virgin to come through this and wish them all the best in this exceptionally trying time. Hopefully in the not to distant future the critical decisions will be made and the staff won't be in limbo over their future.

At the moment we're like the meteorological office, scientists when talking about past events and reading tea leaves when predicting the future.

wheels_down 18th Apr 2020 11:42

Has the CEO left yet? Long overdue. Chief Experience Officer that is. :}

There is also a ‘Chief Risk Officer’. Good Lord.

Paragraph377 18th Apr 2020 13:36


Originally Posted by 2020Balance (Post 10754149)
Heard Lucinda Gemmell has emptied her desk out and left the Village! Not many lifeboats left now while the band keeps playing. Who’s going to be in charge of hiring all the team specialists and oxygen thief’s now?

Oh no! But but who will carry the baton now in the race for diversity in Lucinda’s quest to have freaks, fools and fuc#wits piloting aircraft, all for the sake of ‘diversity’? Is this the end of the era of ‘specialists’?? I thought the pilots would be eventually renamed ‘aeronautical specialists’, the flight attendants ‘In-flight service specialists’, and LAME’s renamed ‘air vehicle specialists’? Morons


International Trader 18th Apr 2020 14:00

Virgin has proven that low cost does not work in Australia.
It was not started by airline executives with a solid business plan but in fact, by 2 secondhand plane salesmen who managed to sell the idea to get start up money on a bar napkin.
When it was floated the original players pulled out their little goldmines and couldn’t give a toss from then on.
The only reason that Virgin survived was that the last Liberal government allowed Ansett to fall .
There were no new ideas or brilliant management types, just low class service for not so low a cost , and fares went up after Ansett failed.
The attempted transformation from a pig’s ear into a silk purse just cost a lot of money and still produced share prices that have not seen more than a quarter of the issue price and at times 1/20 of issue.
What was the last share price ( when you could buy) ?
Penny stock prices they call it in the US, the stuff for mug punters to buy.
The reason for this was because it was grossly over valued at the float and people bought the hype.
Virgin is a dead business, there is no point in dragging the saga on and another operator will take over without the self inflicted debt that a Virgin has to carry.
If it is sold to Chinese controlling interest, there is no guarantee that fares will remain low and even less that the service will be there.
The air will not be fair and the Chinese will want more than the airline , they will expect the gov to take on the debt and will want to pay little for the airline to boot.
Face it , the price of everything is going up as will airfares whether the government urinates 1.4B up against the wall , Virgin fails or the Chinese get control.
Sure ( sadly) people will lose their jobs but, many more lost their jobs when Ansett fell ( I think it may have been 17500) and the government couldn’t care less, why care now?
In fact the government allowed Air NZ to attempt to buy Ansett when it shouldn’t have and they shouldn’t allow the Chinese to take over Virgin now nor bail it out.


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