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Virgin Atlantic

Old 4th Aug 2020, 22:03
  #561 (permalink)  
BBK
 
Join Date: Feb 2001
Location: UK
Posts: 427
Letís hope your wrong Count. Save the crocodile tears.
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Old 4th Aug 2020, 22:30
  #562 (permalink)  
 
Join Date: Dec 2007
Location: EU
Posts: 25
Sorry to rain on your parade Count, I know how happy Virginís demise would make you, but Chapter 15 means bankruptcy protection, and this is all part of the recapitalisation announced a few weeks ago. We are in very stormy water at the moment, but we can and will weather it!



Virgin Atlantic Files Chapter 15 Petition to Aid U.K. Rescue
By Josh Sauland, Claire Boston Bloomberg
August 4, 2020, 8:22 PM GMT+1 Updated on August 4, 2020, 9:12 PM GMT+1

Richard Bransonís airline works on a consensual restructuring
The company faces a cash crunch if it canít get approval




Richard Bransonís Virgin Atlantic Airways Ltd. filed for Chapter 15 bankruptcy protection in the U.S. on Tuesday after telling a London court it was set to run out of cash next month if a pending rescue deal isnít approved.

The airline filed its petition in the Southern District of New York. Chapter 15 allows foreign companies with U.S. assets to protect themselves against claims while they work on a turnaround plan at home.

The company had said during proceedings in the U.K. that it planned to apply for the U.S. protection while it finalizes a rescue plan thatís already supported by a majority of its stakeholders. Virgin is seeking to secure a a 1.2 billion-pound ($1.6 billion) rescue, which was announced in July.

Read more: Virgin Atlantic Seeks Rescue Approval as Cash Running Out

Airlines are under pressure as travelers shun flights to avoid exposure to the coronavirus. At least four U.S. regional airlines have gone bankrupt, and revenue at carriers with vast international networks could see sales plunge 66% this year, according to a Bloomberg Intelligence report.

Since Jan. 1, Virginís reservations are down 89% year-over-year and demand for the second half of 2020 is at approximately 25% of 2019 levels, according to court papers.

ďThe group and its business have been adversely affected by the ongoing Covid-19 pandemic, which has caused an unprecedented near-shutdown of the global passenger aviation industry,Ē according to the court papers. ďGlobal aviation was one of the first industries to be impacted by the Covid-19 pandemic and is likely to be one of the last to fully recover.Ē

Virginís restructuring plan in the U.K. depends on the approval of its Chapter 15 filing in the U.S., the company said in its court filing. Without the plan, thereís uncertainty as to whether Virgin could get enough creditor support to implement its restructuring in time to avoid going into formal insolvency proceedings, according to the filing.

ďBecause VAAL has material assets and operations in the United States, the recognition of the English proceeding and enforcement of the sanction order and the plan through Chapter 15 of the bankruptcy code are necessary to ensure that the plan is effective and binding,Ē the filing states.
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Old 4th Aug 2020, 23:09
  #563 (permalink)  
 
Join Date: Dec 2011
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UK Media is splashing big tonight on Virgin being bankrupt, with a small print caveat. With their core US market closed from April and no sign of the US opening up meaningfully for the forseeable future and with no summer to bank and the toughest trading winter on the North Atlantic in living memory approaching..... Even the mighty IAG are burning cash at a now alarming rate and with a B787 and A350 fleet to keep paying leases on, any restructuring will have to be extensive. There’s 3 new A350s at Toulouse for VS that they now have no need for at all.

Last edited by Skipness One Foxtrot; 4th Aug 2020 at 23:55.
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Old 5th Aug 2020, 02:47
  #564 (permalink)  
 
Join Date: Jun 2013
Location: Pittsburgh, PA
Posts: 97
In 1987, as a fresh faced youngster at BA, I would have been delighted to read this. Thirty three years later, older and a lot wiser, this breaks my heart. Genuinely wishing everyone involved all the very best. I have a huge respect for everything you’ve accomplished.
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Old 5th Aug 2020, 03:02
  #565 (permalink)  
 
Join Date: Jan 2002
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Seriously sloppy journalism seeking blood in a story when if they read the court procedures properly they might understand. but that doesn’t sell newspapers does it?
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Old 5th Aug 2020, 04:08
  #566 (permalink)  
 
Join Date: Jun 2000
Location: LONDON England
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Poor journalism everywhere

Ridiculous that a lot of ‘news’ outlets are saying Virgin Atlantic filing for bankruptcy. Clearly no understanding of the court procedures to help them reorganise in preparation for restructuring and refinancing.
However, Virgin Atlantic need to make as much use of social media and their PR machine as possible, before this inaccurate reporting snowballs out of control.
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Old 5th Aug 2020, 06:42
  #567 (permalink)  
 
Join Date: Jan 2008
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Yeh, but perhaps Virgin's PR team should have been ahead of the game and explained it better

There's a useful summary here https://www.headforpoints.com/2020/0...s-rescue-plan/

Last edited by Andy D; 5th Aug 2020 at 10:01.
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Old 5th Aug 2020, 07:16
  #568 (permalink)  
 
Join Date: Feb 2018
Location: UK
Posts: 145
Indeed, the genie is out of the bottle now, no going back. Was the same for Monarch, TC et al. Shame.
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Old 5th Aug 2020, 08:22
  #569 (permalink)  
 
Join Date: Nov 2001
Location: Where the Money Takes Me
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Andy D

I like this little snippet from that report:

"One aircraft engine will be removed from the overdraft facility. This will allow the airline to use it as security for a further $30 million loan. (Yes, aircraft engines are so expensive – around $50 million in fact – that you only need one as security for a $30m loan!)"

I know the media and aviation are not the best bedfellows - but this takes some beating!!
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Old 5th Aug 2020, 08:55
  #570 (permalink)  
 
Join Date: Oct 2016
Location: United Kingdom
Posts: 58
It is pure media spin, and this coverage will only have an impact for a couple of weeks, then the announcement that the £1.2 billion rescue package has successfully gone through the courts will hit the headlines.

Perhaps then the traveling public will then see Virgin as a safer bet, who knows.

This is a different time, compared to the demise of MON, and TCX, the vast majority of long haul airlines routes are still suspended due to boarders being closed, or quarantine restrictions that a holiday maker would not be willing to face.
When it was announced for TCX and MON the market was still going, holidays makers were still flying, they had other options for there hard earned holiday cash.
But now, which airline is a safe bet for next years holiday?
Also who wants to go around Disney with a family of 4 wearing a mask all day in 35 degree heat, in a humid country.

Virgin is not out of the woods yet, infact no airline is, this winter is going to be tough for everyone, as the bumper summer cash reserves will not be there.
But at least Virgin has a medium term future with this bail out.

I wish everyone working for any airline, good luck and all the best, because were all going to need it.
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Old 6th Aug 2020, 08:55
  #571 (permalink)  
 
Join Date: Aug 2007
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MichaelPit; Agreed. Many of have been around to see the lot. Eagle,Courtline, Channel,Monarch, plus all the mergers/failures. I was in Air Europe when they went down and many of us lined up to join VS. All recent events reminds all of us that aviation is like that.Upturns, downturns, but, this period is far more challenging and I too wish all at VS a healthy outcome to your personal lives.What is painted on the side of a aeroplane has no relevance at all, now.
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Old 6th Aug 2020, 13:30
  #572 (permalink)  
 
Join Date: Jun 2000
Location: LONDON England
Age: 49
Posts: 268
Agreed

Totally. They will survive, I’m sure. I have even booked a flight to Miami for April. Aviation has always been cyclic, but this cycle is a bit bigger. Good luck to all at Virgin.
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Old 7th Aug 2020, 19:24
  #573 (permalink)  
 
Join Date: Dec 2011
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I've just had my holiday to Antigua in October cancelled for the second time. VS cancelled the package holiday from LGW I booked in January back in June because they shifted the flights to LHR. So I rebooked from LHR flight only and found my own hotel. Now they've just cancelled the LHR flight.

The thing is I can find no record of VS ever operating a LHR to ANU service since COVID. Makes me wonder if it was just a phantom route to generate some cash flow. Meanwhile I'll probably have to rebook for a third time on the BA service and I'm now waiting on two refunds from VS.

I'm determined to take this holiday. The irony is there's no travel or quarantine restrictions between UK and Antigua right now. The problem is finding me an airline to get me there!
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Old 9th Aug 2020, 20:50
  #574 (permalink)  
 
Join Date: Mar 2010
Location: UK
Age: 73
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The problem is finding me an airline to get me there!
BA are commencing LGW-ANU service on 19/8/20
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Old 9th Aug 2020, 21:29
  #575 (permalink)  
 
Join Date: May 2003
Location: UK
Posts: 433
You could always try TUI!
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Old 9th Aug 2020, 21:53
  #576 (permalink)  
 
Join Date: May 1999
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BA have been flying to ANU for a week
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Old 12th Aug 2020, 07:16
  #577 (permalink)  
 
Join Date: Oct 2002
Location: sussex
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In the BBC news again for not paying refunds. How much cash do they have left ?
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Old 12th Aug 2020, 07:49
  #578 (permalink)  
 
Join Date: Sep 2018
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Supposedly if bookings donít improve by Jan , then they will shut down the business and re emerge as Virgin mk2
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Old 12th Aug 2020, 12:13
  #579 (permalink)  
 
Join Date: May 2002
Location: Courchevel
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That makes a lot of sense to me as things aren't getting any better for now, make a comeback then under a different guise when this whole pandemic abates. The current setup is just unsustainable, not just just for Virgin Atlantic but many airlines.
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Old 13th Aug 2020, 05:20
  #580 (permalink)  
 
Join Date: Feb 2007
Location: Various at the moment
Posts: 1,116
Virgin Atlantic already has another company up and running under the name Virgin Atlantic International Limited.
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