Private equity take-over for Virgin Australia?
Private investors are reportedly circling Virgin Australia for a 'take-over and turn-around’ manoeuvre which could result in leaner, more competitive (but potentially domestic-only) airline
https://www.executivetraveller.com/n...uity-take-over This doesn’t sound like the worst that could happen, in fact it might end up being just what Virgin and Australia needs. Still two airlines so still competition, but not a Virgin that’s trying to be Qantas and suffering for it. Also, being in Australian hands sounds good to me! |
Originally Posted by MelbourneFlyer
(Post 10752741)
Private investors are reportedly circling Virgin Australia for a 'take-over and turn-around’ manoeuvre which could result in leaner, more competitive (but potentially domestic-only) airline
https://www.executivetraveller.com/n...uity-take-over This doesn’t sound like the worst that could happen, in fact it might end up being just what Virgin and Australia needs. Still two airlines so still competition, but not a Virgin that’s trying to be Qantas and suffering for it. Also, being in Australian hands sounds good to me! |
Yes, some hope. They will only jump in once the company is in administration. Relief from debt and shareholders becomes possible then.
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If, and I repeat if, it happens, assuming Branson pulls out would he also take the IP rights to the name “Virgin” with him?
and if so what would you call the resurrected airline? Ansett MUST be taken. of course you could call it Ozjet........................... I’ll get my hat............ |
I see VARA emerging with the fifo operation and the rest well, split away.
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Agree with topend3.
Come administration time I don’t think they’ll be a lack of interest in buying the operation. A bit less fat though which was always going to be the way. They were on that road anyway. There has to be competition and a second major in Australia. Thoughts are with you VA guys and girls! I just hope those TPG guys remember to wake up the guy writing the cheque! |
Originally Posted by airspace alpha
(Post 10752763)
If, and I repeat if, it happens, assuming Branson pulls out would he also take the IP rights to the name “Virgin” with him?
and if so what would you call the resurrected airline? Ansett MUST be taken. of course you could call it Ozjet........................... I’ll get my hat............ |
They will only jump in once the company is in administration. The potential purchasers won't give out too many details regarding their intentions at this stage incase it affects the price. They could go for a 30-40 B737 domestic only low cost operation (Virgin Blue MK2) or they could envisage a 70-80 sized fleet of B737s to maintain the previously profitable parts of the network. International, if at all limited to NZ, Bali and Fiji. Business class, which the aircraft are already fitted for, akin to the JQ/Scoot/AirAsia offering not trying to compete with QF for the top end of town. Aircraft leases will be easy to obtain on favourable terms so there's no hurry to commit at this stage. |
If they run a 30-40 aircraft operation they’ll be slaughtered by Jetstar. They need critical mass to spread the costs with a similar footprint.
My guess is Alliance will buy VARA and we will see what happens to the 737s |
Anyone who’s been following the SAA situation will recognise the impending restructure of Virgin is exactly what financial analysts in SA say should have happened to SAA years ago. More loans likely entrench existing deficiencies as access to the needed restructuring facilities are unavailable. The advantage is minimal staff losses but it’s kicking the can down the road. There will be no shortage of reinvestment for the ‘new Virgin’, which I guess is scant comfort for employees. Their emotions should be directed at JB firstly, and the board next, who shirk away from all responsibility other than compliance. I feel for all employees of Virgin. It makes me angry. The ivory tower cultivates and spreads the cancer but gets to walk away with the magic pill whilst blaming the hostile environment.
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Their emotions should be directed at JB firstly |
Originally Posted by Blueskymine
(Post 10752801)
If they run a 30-40 aircraft operation they’ll be slaughtered by Jetstar. They need critical mass to spread the costs with a similar footprint.
My guess is Alliance will buy VARA and we will see what happens to the 737s The mines are already getting nervous. |
The mines are already getting nervous. |
I would have thought Alliance will be looking even more closely at what is unfolding with VARA. WA FIFO operations must have some appeal as Alliance are already in the field.
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As said above, there is no way any Private Equity Investor would touch VA until it is debt quarantined, ie, in administration. The debt has to be removed prior to a new investor coming on board.
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a complete change of board is the first step otherwise how can the airline hope to chart a new course. A fish rots from the head is an old and true adage. The board, and Borgetti have created the mess. How about some accountability. Sacking Tiger pilots, great move idiots. Blame never apportioned where it belonged. Crap rostering, crap management, crap lease arrangements on aircraft. Crap ideas (Bali, catering etc) by managers have sunk this Titanic.
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Dunno about private equity, the news this morning was that China Southern is one of the 2 main contenders.
Destroy the world economy, buy it back at fire sale prices, own the world. Simples. |
Bit of perspective. I am not a JB fanboy BUT, VA hasn’t turned a profit over the last 6 years due to the capital investment of putting the airline on a path of direct competition with QF. the shareholders have stumped up billions in order for this to happen. No dividends have been issued so hence no money going back O/S. I think the owners finally realised a change of leadership was required hence JB told to move on. ANZ debacle most likely precipitating that. If that investment had not been made then we would still be competing against JQ alone and all this talk of industry competition would be moot, QF would be doing exactly as they please, Gouging out the public. Plenty of examples of this behaviour still going on. So if we were still VB and eking out a meagre profit against JQ would that be a good thing, who knows, probably wouldn’t be in this situation, but then all of you who don’t get staff travel would be paying for it........remember QF is in a good position financially at the moment, well they say they are - all bravado in my opinion, but they have already been ‘chosen’ as the winner regardless of the VA outcome. And let’s not forget the billions in dividends going to QF’s 41% foreign shareholders for all you ‘advance Australia fair’ followers. How much investment has QF actually done in the business (apart from bonus/dividend inducing buy backs) over the last decade........bueller......bueller.......bueller.
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Originally Posted by No Idea Either
(Post 10753759)
Bit of perspective. I am not a JB fanboy BUT, VA hasn’t turned a profit over the last 6 years due to the capital investment of putting the airline on a path of direct competition with QF. the shareholders have stumped up billions in order for this to happen. No dividends have been issued so hence no money going back O/S. I think the owners finally realised a change of leadership was required hence JB told to move on. ANZ debacle most likely precipitating that. If that investment had not been made then we would still be competing against JQ alone and all this talk of industry competition would be moot, QF would be doing exactly as they please, Gouging out the public. Plenty of examples of this behaviour still going on. So if we were still VB and eking out a meagre profit against JQ would that be a good thing, who knows, probably wouldn’t be in this situation, but then all of you who don’t get staff travel would be paying for it........remember QF is in a good position financially at the moment, well they say they are - all bravado in my opinion, but they have already been ‘chosen’ as the winner regardless of the VA outcome. And let’s not forget the billions in dividends going to QF’s 41% foreign shareholders for all you ‘advance Australia fair’ followers. How much investment has QF actually done in the business (apart from bonus/dividend inducing buy backs) over the last decade........bueller......bueller.......bueller.
Are you claiming because Qantas is 41% foreign owned, its not an Australian airline? Also could you tell me where the Virgin "profits" would go if they ever made some? |
https://www.dailymail.co.uk/news/art...-bail-out.html |
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