Another one bites the dust. Virgin Australia into Administration

 
  KRviator Moderator

Location: Up the front
IT was only a matter of time, but Virgin Australia looks set to enter Voluntary Administration tomorrow. They've been bleeding money for yonks, but this bug seems to have been the end of them. A shame, I've flown with them hundreds of times over the last decade for work and for the most part, had a pleasant flight. Especially in business class - always much nicer than the Qantas offerings.

Virgin Australia to go into voluntary administration
The airline will reportedly go into voluntary administration, after its board met tonight to decide on the company’s future.


Virgin Australia will reportedly go into voluntary administration after failing to find a way to keep the company afloat. It’s understood its board held crisis meetings this afternoon and will make an official announcement tonight.

The Daily Telegraph reports crisis talks with the NSW and Queensland governments failed to come up with enough cash to bail out the grounded airline. The beleaguered company is struggling to overcome the $5 billion in debt to come from the COVID-19 pandemic. Sources have told media outlets the company was unable to secure assistance from the federal government, despite repeated efforts.

Virgin employs about 10,000 people directly and supports another 6000 jobs indirectly. Deloitte is expected to handle the administration process. The airline could have been thrown a lifeline by the NSW Government if it gave up its Brisbane headquarters and moved to western Sydney.

NSW Treasurer Dominic Perrottet revealed on Sunday that the State Government and the airline had conducted “significant discussions” around financial assistance to keep Virgin in the sky. Speaking to Sky News’ Sharri Markson, Mr Perrottet said a move to western Sydney from headquarters in Brisbane was part of the discussion, and that the government had a “strong interest” in keeping the industry competitive.

But Queensland State Development Minister Cameron Dick hit back at the comments on Monday, telling the NSW Government to “back off” and that he would “fight any attempt by New South Wales to steal Virgin Australia from Queensland to Sydney”. Virgin and Qantas have so far received assistance in the form of a $165 million injection from the government to support them running domestic services for the next eight weeks.

More to come
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  james.au Minister for Railways

Location: Sydney, NSW
It hasn't happened yet!

Tho lets see how this post ages in the next 6 hours.
  KRviator Moderator

Location: Up the front
It has now...Here's the announcement.
  bevans Site Admin

Location: Melbourne, Australia
It has now...Here's the announcement.
KRviator

And further details https://www.railpage.com.au:80/news/s/virgin-australia-set-for-voluntary-administration this is interesting in that they only made a profit according to reports on the news 2 years out of the last 10.

I have said this more and more in recent weeks, and been confirmed by the ALP and the greens https://www.railpage.com.au:80/news/s/greens-say-highspeed-rail-project-could-help-economy-recover-after-covid19-pandemic this country needs a viable and well maintained high speed network with higher speed passenger services.

I did grin this morning at an artlcle on the ABC about how doctors cannot get to regional parts of South Australia (including the iron triangle) and some having to hitch rides and fly their own planes.

Anyhow not wanting to make this about rail again but there needs to be a critical look now at what airline services will be in the future and the role of rail to ensure there is a balance and service delivery.
  bevans Site Admin

Location: Melbourne, Australia
Victoria in a bid go get Virgin HQ to Avalon?

https://www.railpage.com.au/news/s/victoria-considered-virgin-rescue-bid-as-10-suitors-circle-the-airline

Smoke and Mirrors but probably the reason why Queensland offered Virgin $200m to keep their head office in Brisbane.
  justapassenger Minister for Railways

I did grin this morning at an artlcle on the ABC about how doctors cannot get to regional parts of South Australia (including the iron triangle) and some having to hitch rides and fly their own planes.
bevans
Care to provide a link?

Fact check:
Virgin Australia didn't serve any regional destinations in SA.
Neither the Iron Triangle or any other part of SA is presently so completely cut off from the road network that air is the only form of access. In the event of major flooding or some other disaster making that happen we would quickly see assistance being provided by emergency services and the ADF.
For emergency needs the RFDS is still operating - I just looked on FR24 and saw a couple of their planes up.


It sounds like a beatup. Perhaps some high-ranking consultant had his X5 in for a service and preferred to fly than drive a plebian loan car like a 3 series.
  bevans Site Admin

Location: Melbourne, Australia
Hi, the comment was based on statements ABC AM programme earlier this week.  

Last evening the news in Melbourne contained a segment on how interested Melbourne Airport is in getting Virgin there but really are there any virgin intrastate flights in  Victoria so really how many flights other than interstate could be paired out of Melbourne.
  Madjikthise Deputy Commissioner

And now one of the Chinese owners is threatening to sack Australians if the government doesn't help. How nice.
https://www.dailymail.co.uk/news/article-8247225/Virgin-Australia-shareholder-threatens-sack-2000-workers-doesnt-125million.html
  GeoffreyHansen Minister for Railways

Location: In a FAM sleeper
Aren't there intrastate Virgin Australia flights between Melbourne and Mildura?
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
And now one of the Chinese owners is threatening to sack Australians if the government doesn't help. How nice.
https://www.dailymail.co.uk/news/article-8247225/Virgin-Australia-shareholder-threatens-sack-2000-workers-doesnt-125million.html
Madjikthise
Chinese companies are loaded with debt, that's the real ticking time bomb in all this. We probably won't see until later this year just what kind of an impact it will have - but given the huge amount of Chinese 'investment' in Australia there could be a fire sale of assets over here to help out.
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
And now one of the Chinese owners is threatening to sack Australians if the government doesn't help. How nice.
https://www.dailymail.co.uk/news/article-8247225/Virgin-Australia-shareholder-threatens-sack-2000-workers-doesnt-125million.html
Chinese companies are loaded with debt, that's the real ticking time bomb in all this. We probably won't see until later this year just what kind of an impact it will have - but given the huge amount of Chinese 'investment' in Australia there could be a fire sale of assets over here to help out.
don_dunstan
There will be some pain, but let the Chinese sack the Aussies, someone else will move in to replace them. The Chinese anything brand is going to take a beating over the CV and hopefully the world, especially Africa wises up to China and starts putting their own blocks in place to stop the Chinese economic take over.
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
Aren't there intrastate Virgin Australia flights between Melbourne and Mildura?
GeoffreyHansen
Still listed as a destination, but not flying.
  bevans Site Admin

Location: Melbourne, Australia
Update on the bidding: https://www.railpage.com.au/news/s/virgin-australia-bids-to-narrow-to-just-2-parties
The "inside" gossip around mates is a Melbourne Based Private Equity Group is looking good for a deal.
  bevans Site Admin

Location: Melbourne, Australia
Virgin Australia will cut 3000 jobs from its 9000-strong workforce in an effort to be a “stronger, more profitable carrier”.

An update to the ASX, which will be shared with employees on Wednesday, revealed the airline will go to a simplified all-Boeing 737 fleet, discontinue budget carrier Tigerair but maintain its commitment to regional and charter flying.

Long-haul international routes will be suspended until the global market recovers from COVID-19, which could be two to three years away.

Virgin Australia CEO Paul Scurrah said together with new owners Bain Capital, the Virgin 2.0 plan would secure 6000 jobs and re-establish the carrier as “an iconic Australian airline”.

“Our initial focus will be on investing in the core Virgin Australia domestic and short-haul international operation alongside our 10-million-member strong Velocity frequent flyer program, continuing to offer an extensive network of destinations, a domestic lounge network and value for money for customers,” Mr Scurrah said.

“Bain Capital recognises the importance of Virgin Australia’s loyal customers and that’s why they will be provided the value of their travel credits post-administration with validity significantly extended to ensure they have plenty of opportunity to book tickets to their favourite destinations.”
  Valvegear Dr Beeching

Location: Norda Fittazroy
Part of the report also says that the low-cost Tigerairwill be axed. Virgin will also get rid of its B777's, ATR's and A330's , plus Tiger's A320's , to standardise on B737 aircraft only. This will make the spare parts inventory and aircraft maintenance considerably simpler and cheaper.
  Carnot Minister for Railways

So basically Virgin Australia will be no different to what it was 15-20 years ago.  Gonna feel like 2003...
  bevans Site Admin

Location: Melbourne, Australia
Slight OT Qantas is stated their cash burn through this year is $40m per week.  Estimate they will have burned over $800m by the end of this year.

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