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-   -   "Virgin Australia Mk II could launch in as little as three months" (https://www.pprune.org/australia-new-zealand-pacific/631831-virgin-australia-mk-ii-could-launch-little-three-months.html)

MelbourneFlyer 23rd Apr 2020 11:47

"Virgin Australia Mk II could launch in as little as three months"
 
The administrator's timeline goes from presenting its model for Virgin Australia 2.0 by early May to having a buyer locked down by the end of June.

https://www.executivetraveller.com/n...s-three-months

Dale Hardale 23rd Apr 2020 12:10

Good luck with that one - that's a very optimistic view of it.

onehitwonder 23rd Apr 2020 12:26

Are they solvent?
cash injections?
pay creditors, cents in the dollar?
approvals?
is the market travelling post COVID?

Ragnor 23rd Apr 2020 12:27

Oh god 🤦🏻! Without a single change in upper management who got them in this mess to begin with I would expect VA to be a failure again in a few yrs.

Office Update 23rd Apr 2020 14:08

Historically;

Compass 1 shortly followed by Compass 2.

KRUSTY 34 23rd Apr 2020 18:31


Originally Posted by Office Update (Post 10760354)
Historically;

Compass 1 shortly followed by Compass 2.

Ansett followed by Tesna!

normanton 23rd Apr 2020 22:33

  • Attractive two player domestic market with proven profitability Nope, you've lost $5b
  • Strong ongoing demand for domestic air travel Nope, domestic and international travel is dead
  • Strategically valuable access to routes and slots in the "Golden Triangle", historically one of the most profitable operating jurisdictions globally for air travel And yet, you still lost $5b
  • Highly cash generative and distinguished Velocity Frequent Flyer loyalty model, in excess of 10 million members and 90 partners 10m members? How many are active? Haven't used mine for 10 years!
  • Key strategic assets and infrastructure, including aircraft, route network, airport gates/slots, built over 20 years Agreed
  • Unique opportunity to 'relaunch' Virgin Australia with a sustainable capital structure post COVID-19 Yes it will be very unique.
  • Strong support from government, regulators and unions - have all expressed a desire to keep Virgin flying following recapitalisation Got anything in writing?
Thats one hell of a sales pitch! Almost spilt my cup of coffee reading it.....

snoop doggy dog 23rd Apr 2020 22:41

Change the name.:ok:
One less piggie with it's snout in the trough at roughly $15M a year... :ugh:
Then employ from outside the Toxic pond of Management that killed Ansett and now Virgin :hmm:

WINJA 23rd Apr 2020 22:58

Heard it all before with Ansett. It's a dead cat bounce.

Paragraph377 23rd Apr 2020 23:15


Originally Posted by snoop doggy dog (Post 10760870)
Change the name.:ok:
One less piggie with it's snout in the trough at roughly $10M a year... :ugh:
Then employ from outside the Toxic pond of Management that killed Ansett and now Virgin :hmm:

Bingo!!!!Spot on. Branson is a 1970’s brand. You don’t need him, time to retire the fool to Pecker Island indefinitely. Make the brand true Australian.

The Bullwinkle 23rd Apr 2020 23:29

Good to see the positive brigade out in force this morning! :rolleyes:

Dale Hardale 23rd Apr 2020 23:30

Why not call the new airline ANSETT :ok:

Sunfish 23rd Apr 2020 23:32

Three months might be just possible, but it would require all the creditors to agree. That is probably not easy to achieve.

The first thing needed is warts and all management accounts, which Deloitte will produce soon. That will tell you if the patient is dead or alive and how much time you might have to do a deal. If the company is already insolvent, it’s too late.

After that you need to see if it’s possible to keep the airline as a going concern and what you would need from creditors and investors to make your plan happen.

Then you get to try and negotiate with all those creditors and potential investors to make it happen. That takes a genius to do. Potentially the only lever I think the administrator usually has is a negative one. - She can threaten to go into bankruptcy and hold a fire sale in which case most except perhaps secured creditors will lose.

This stuff is not for the faint hearted. Billions can be made or lost in this process.

Best advice I can think of is to try for a new job or change careers or start your own business. Don’t wait around paralyzed each day hoping for a miracle. It may happen, it may not.

machtuk 23rd Apr 2020 23:33

Post CV-19 won't be booming no matter what mask you put on a new name/entrant!

Dale Hardale 23rd Apr 2020 23:35

Begs the question - if the company is found to be already insolvent, when were the directors first aware that solvency was a real problem and did they act legally ??

Paragraph377 23rd Apr 2020 23:48


Originally Posted by Dale Hardale (Post 10760904)
Begs the question - if the company is found to be already insolvent, when were the directors first aware that solvency was a real problem and did they act legally ??

Great question. I do doubt that they traded while knowingly insolvent at any stage because Board members and CEO’s are usually spineless people and the mere thought of being locked up in jail wiith a rockape would have them trembling with fear. However, the Administrator will now be able to lick all the toffee off the toffee coated turd and it will be interesting to see ‘what lays beneath’.


Rashid Bacon 23rd Apr 2020 23:52

I wonder who initiated the voluntary administration - Scurrah or the board ?? ie was the dog wagging the tail or vice versa.

Paragraph377 24th Apr 2020 00:04


Originally Posted by Rashid Bacon (Post 10760916)
I wonder who initiated the voluntary administration - Scurrah or the board ?? ie was the dog wagging the tail or vice versa.

Brilliant question. Only the Board, CEO and the plates of cucumber sandwiches and cups of herbal tea on the table know the answer. Seeing Scurrah taking the lead at the conference with the Adminsitrator (bizzare) might answer that question. Both Board and CEO would have been well aware of the financial issues obviously. The Board has the final say though, so technically it’s their call with the message delivered by the Chair. Well, thats the normal process anyway. There would have been lots of late night discussions though.


Rashid Bacon 24th Apr 2020 00:15

That conference with the administrator ranks as very bizarre - The administrator should have been the lead commentator as the entity now responsible legally for Virgin, but that didn't happen.

There is something not right with this whole thing.




wheels_down 24th Apr 2020 01:11

Sounds like pulling the Admin card to clean up some numbers, and get rid of some foreign shareholders.

The whole thing reeks of being pre arranged.

They already have some form of Buyer pre negotiated?

Its Admin, but its not. I wonder who is orchestrating the entire thing. Clearly its Virgin and someone else. Not the Admin guys that's for sure. They are just along for the ride it seems. Dangle the $$$, this is what we want....this is how to do it....they signed up.

Yep. Strange indeed.


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