Virgin Australia Financially Secure? [Now in Voluntary Administration]

[jase05]

Well Cyrus keep saying they have a secret airline partner/s in the wings so wonder who it is....

Wasn’t EY sniffing around and trying to get in with Cyrus?
I think EY later refuted it citing they didn’t have the funds so I too wonder who it is

 

[HS-TQE]

VA has put NZ on sale from August.

Also another interesting quote in the linked article.

A first liquidators' report said the company owed preferential creditors $90,000 and unsecured creditors $11m, the majority of which related companies within the Virgin Australia group.

In the 2019 financial year Virgin Australia (NZ) Employment and Crewing made revenue of about $65m and an after tax profit of $13m.

Virgin Australia's New Zealand operations were part of the group sale process being undertaken by the administrators, the report said.

Reportedly the VANZ subsidiary (which has had staff laid off) was 'barely' profitable.

Stuff

www.stuff.co.nz

 

[Melburnian1]

VA has put NZ on sale from August...

Some might call anyone who books with VAi for these 'brave.' The word 'foolhardy' comes to mind.

 

[N860CR]

So the employees would have to get 80% plus of the employees to vote to be sure to win the vote on numbers but no way can they win the vote on amount owed.

My understanding is that whoever the employees vote for are likely to be successful based purely on numbers, however it’s possible that the bond holders would have the power to basically bring it to an even vote. The administrator then pulls their trump card and makes the final decision. Employees seem likely to vote for whoever the administrator recommends.

 

[BNEFlyer]

Some might call anyone who books with VAi for these 'brave.' The word 'foolhardy' comes to mind.

Booking travel to NZ in August on any airline is foolhardy at this point.

 

[jakeseven7]

VA has put NZ on sale from August.

Wow so they can grab more money from people and hold it as 'travel credit'? Pretty low act....

 

[antycbr]

The media says little (because it knows little) about the role of the unsecured bondholder creditors owed about A$2 billion. They're important.

In the end the unions will not be important, as by value their members' 'votes' count for little.

We have been through this that both by number and value are important and at the end Deloittes have the casting vote (subject to court challenge). Therefore employees are important.

 

[Denali]

My husband and I had separate bookings for August and just got emails.

My booking is now routed via Melb and click to accept.

His booking is now cancelled, heres a credit to be used during administration period only.

Makes no sense.

 

[Melburnian1]

Booking travel to NZ in August on any airline is foolhardy at this point.

Yes, since when has anyone in government named 'August' as a possible date for any Oz-NZ 'travel bubble?' I have seen 'September' mentioned with the word 'possible' in some articles, but latterly that seems to have gone by the wayside.

 

[p--and--t]

Yes, since when has anyone in government named 'August' as a possible date for any Oz-NZ 'travel bubble?' I have seen 'September' mentioned with the word 'possible' in some articles, but latterly that seems to have gone by the wayside.

August should be ok.

Things should be sorted out by Aug (2021 that is)

 

[antycbr]

Some might call anyone who books with VAi for these 'brave.' The word 'foolhardy' comes to mind.

Except those who have travel banks or conditional credits. The money is trapped inside VA already... and I’d rather have a booking than credit at the moment as it’s harder to devalue a booking.

 

[AIRwin]

Wow so they can grab more money from people and hold it as 'travel credit'? Pretty low act....

I thought changes/cancellations to any new bookings (made after 21 April during the period of voluntary admin) will be subject to the fare rules and will not be held as conditional credits?
https://travel.virginaustralia.com/au/coronavirus-update/change-cancel

 

[melb78]

I would not be surprised that Cyrus my win as 2 of the biggest unions have put there support behind them. plus they have the support behind PS. we will all find out in 12 or so days time

 

[jakeseven7]

I would not be surprised that Cyrus my win as 2 of the biggest unions have put there support behind them. plus they have the support behind PS. we will all find out in 12 or so days time

Well of course PS will be rallying the troops *quietly* to support Cyrus because they have guaranteed he remains... so he won't have to go on JobSeeker!

Bain have not confirmed his fate...

 

[The-Aviator]

Well it seems Bain has decided to emulate the Cyrus model. Keeping PS in the top job, maintaining VA somewhere in between QF and JQ and gradually rebuilding an international operation.

Perhaps the most interesting quote is at the end of the article, if Cyrus don't match this could make all the difference:

There have been concerns that Virgin could go into insolvency before a new owner can be installed at a second creditors' meeting in August. But Mr Murphy said that if chosen as the preferred bidder at the end of this month, Bain would fund the airline's operations from that point on.

Virgin bidder Bain says it won't cut any deeper than rival Cyrus

Bain Capital's local boss Mike Murphy says he doubts Virgin Australia will be smaller under his private equity firm's ownership than if rival bidder Cyrus Capital takes control of the bankrupt airline.

www.smh.com.au

 

[Zanzara]

What many maybe interested if Bain or Cyrus have stated if they will honour all the thousands of cancelled bookings; now converted to pretty restricted travel credits and also all the partner airline redemption bookings? If they dont they will incur the wrath of many, further hugely damage an already tarnished brand and loose a lot of goodwill.

 

[jakeseven7]

Well it seems Bain has decided to emulate the Cyrus model. Keeping PS in the top job, maintaining VA somewhere in between QF and JQ and gradually rebuilding an international operation.

Perhaps the most interesting quote is at the end of the article, if Cyrus don't match this could make all the difference:

Virgin bidder Bain says it won't cut any deeper than rival Cyrus

Bain Capital's local boss Mike Murphy says he doubts Virgin Australia will be smaller under his private equity firm's ownership than if rival bidder Cyrus Capital takes control of the bankrupt airline.

www.smh.com.au

So where does Jayne fit in then.... Chairperson?

 

[antycbr]

The government is unhappy with the administrators. You may recall back in March the Government demanded a market solution... As predicted they are now trying to pick winners from the market solution and are “annoyed” that BGH was excluded from a market led process.

Matt Canavan whinging that some regional ports will lose service. You can’t expect a recapitalisated VA to continue to do what the old VA did - lose money hand over fist!

Talk about not knowing what you want. Jesus wept.
(The Australian)

 

[jase05]

The government is unhappy with the administrators. You may recall back in March the Government demanded a market solution... As predicted they are now trying to pick winners from the market solution and are “annoyed” that BGH was excluded from a market led process.

Matt Canavan whinging that some regional ports will lose service. You can’t expect a recapitalisated VA to continue to do what the old VA did - lose money hand over fist!

Talk about not knowing what you want. Jesus wept.
(The Australian)

The government had a chance to help VA and declined. They can’t now have a sook about who will buy them

 

[jakeseven7]

The government had a chance to help VA and declined. They can’t now have a sook about who will buy them

Its just the usual ministerial whingers, not representative of the governments position which is clearly still ‘who cares and hurry up’