Goodluck to the Virgin employees I hope you get your entitlements

No, we are getting our jobs back.

Yes, the success rate is under 10%. Good luck.

Success rate

success rate 2

success rate 3

The Directors had no choice because trading while insolvent would destroy them personally. This is why Directors and CEOs get paid big bucks, not that it is any consolation.

What I would hope for now is that the Australian Government leans over backward to ensure Virgin survives. The shareholders have lost pretty much everything, as is always their risk.

What concerns me now is that Qantas will be lobbying every decision maker in Government and Treasury - all the ******* ANU trained economists, to “let Virgin go” because “Australia can only afford one airline - economies of scale, you know”. Furthermore they will use every dirty trick in the book to destroy what’s left of Virgin. Probably already offering to honor their tickets, take their slots, rent their terminal space, etc., etc.

The critical issue now is the AOC and the continuing airworthiness of the aircraft and certification of crews. Once that gets affected Virgin is gone.That is where CASA comes in, they can either help keep Virgin on life support or be uncompromising and destroy it as they had to do to Ansett when they pulled the AOC.

God bless you all.

I hope you are right TL

But I don't think that will happen if you go into administration

It’s actually about 1 in 4 companies that come out of administration.

What VA employees are probably sick of reading here is users who post well wishes to employees after having just told them how the place is completely stuffed and should be closed down / not be given a loan / not allowed to have foreign entities buy in.

first sound advice would be to a VA employee if they’re looking for reassurance they’d be best not to come anywhere near PpRune anyway !

Normally I’d agree that VA is the kiss of death for a company. Especially one that relies on being paid so far ahead of actually providing the product or service. Customers won’t touch you with a ten foot pole once they hear those words uttered. But if you were going to pick a time in the last century for an airline to go into voluntary administration, this is it.

Virgin’s bookings after this announcement tomorrow will be the same as they were yesterday. Yes those bookings are zero but it’s an unheard of scenario and one which will help rather than hinder. Imagine if this had happened 6 months ago when airlines were operating normally. There would be less reason for hope than now.

Once a company is in administration any debts incurred from that point onwards are guaranteed by the administrator so there shouldn't be any problem with essential suppliers such as fuel and NAV charges, and with $700+ million in the bank Deloittes will probably allow limited flights to resume as long as the income from them exceeds the cost of operating them. They will want to keep the basics on life support just incase there is any chance of selling the airline as a going concern so the required post holders CP, HOT etc will be kept on for now.

Standby for the official announcement and see who makes a move once the creditors are formally put a bay.

Oh! JB I hope you get a good night sleep tonight you derserve it. I hope your proud of your 10 years. Hope your shiny cars are sparkling as well.
They are so much more important than my heart attack I'm about to have. But don't worry about that JB you'll be fine.

Korda Mentha must be mad that they missed out on another mother load...:mad:

I hope he wraps his McLaren around a lamppost! :mad:

Let's se how the VIRGIN VA pans out. On a much smaller scale accountants Ferrier Hodgson managed to sell Flight West Airlines to Qld Airline Holdings after 9 months in Administration as going a concern. QAH became Alliance Airlines which is still running in their niche market, despite having contracts with Virgin and an unwelcomed 19% Qantas shareholding. A revamped Virgin is possible and liquidation is not the sole course of action available one would hope.

Will VA still continue flying the restricted routes that the Federal Government has subsidised until 7th June.?

Depends if their suppliers, fuel, catering, etc think they will get paid or move to rescind their contracts.

And now it is official. Here's the ASX announcement

"IF" VA come back in some form remember they won't be competing in a pre CV19 market. It will be a LOT tougher for a long time so any new operation has a high chance of failing (again), QF are in the same environmental boat but obvioisly where not going down the toilet pre CV19.

Spare a thought for the good folk at Virgin who will likely lose way more than a return fare.

They have less to worry about now as the administrator guarantees payment from their own pocket for any debts incurred once they take over. Note that certain entities can't have contracts with a company in administration, I remember that Australia Post was one of them but stand to be corrected by anyone with more up to date information as I'm going back 20+ years.

Flights still operating from what I see on FR24.

From TWU : “There is still time for the federal government to work on an investment plan to get through this period of crisis and taxpayers will get a double benefit. The government will retain a competitive aviation market and they will get a return on their equity stake.”

Will we get a return on our equity stake? When? The current shareholders haven't had much of a return for 10 years.

CASA did no have to pull Ansetts AOC: they were complicit in Ansett;s demise when they failed to properly and correctly undertake their obligatory oversight of Ansett, in particular Ansetts engineering responsibilities.

I.e. it is CASA's responsibility to ensure manufacturers modifications are carried out where in the case of the Ansett Boeing 767 they did not ensure Ansett carried out the rear pressure bulkhead modification; only when Boeing checked to see if this was done by the due date did the whatsit hit the fan when Boeing was obliged to tell
Ansett and CASA whereupon CASA had no option but to ground the aircraft. QED.

(Boeing was obliged i,e Boeing had to protect themselves)