Business & Finance Airline Industry

[Kwality]

Which member of Angus Taylor's family stands to profit from the liquidation of Virgin? That always seems to be a leading factor in most government policy.

A partner of Deloittes?

 

[Kwality]

if China wants Virgin, this is how they get around FIRB

1) they have 40% of the vote already
2) They fund the administrators costs and pay out all the staff priority payments (a defined legal limited amount) and the ATO, whilst company is in administration. This is achieved using a cheap secured facility.
3) They arm wave look how nice we are, we have looked after the workforce etc etc
4) They now have all the power (creditor voting, equity voting and control of the administration process..
5) As part of the process they shift the company out of admin into liquidation, every time the administrator looks like it will present a deal that is not palatable to china's objective. Then take it out of liquidation and back into administration.
6) They present a deal where branson remains involved to retain the branding and end up in control. No doubt they will want ethiad, singapore etc involved. I have no doubt government money will be involved to pay out the outstanding staff entitlements above the legal limit for priority payment.

Need a Receiver?

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Need a liquidation, restructuring or insolvency firm? Get financial debt advice from company liquidators and bankruptcy experts. Contact Mackay Goodwin!

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[Syd]

Can you still transfer points to Krisflyer?

No idea I don’t use Krisflyer

 

[Syd]

Yeah I jumped on the store last night, no dice. Anyway i'm more worried about the $450 in travel credit I have, it's more annoying that it was due to a work trip cancellation and I haven't been reinbursed for it but anyway, not much I can do. (there are ways to fudge expenses anyway if it comes to that).



I read that you cannot do this.

No more flight credits to worry about for me

 

[Power Raid]

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Restructuring & Insolvency Solutions - Mackay Goodwin

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australiandebtsolvers.com.au

Best thing is, for china, this is an exemption from FIRB

 

[Rob]

We need a second airline - without it we are at the absolute mercy of qantas.

when VA cut their flights to some of the regional towns here in WA prices jumped considerably

Yeah I noticed that when they stopped Gero flights. Qantas bumped up their prices significantly.

But I don't think there will be too much difference in Virgin in the longer term. They'll renegotiate their debt and leases. If the government ends up putting something in then hopefully they get equity in return.

 

[Scotland]

I've got a bunch of Velocity points, had a look at the online shop last week. Hopefully they are redeemable in future for flights because they are worth **** all otherwise.

 

[Great8]

I've got a bunch of Velocity points, had a look at the online shop last week. Hopefully they are redeemable in future for flights because they are worth fu** all otherwise.

Velocity is a seperate business and is not under administration. PS has stated they have adequate funds in the trust to cover everyone’s points. They have halted the trading of points for 4 weeks to restructure the program but I’m very bullish that everyone will keep their points

 

[the_interloper]

Was listening to Hutchy and Barrett's podcast today, they both reckoned that going into administration would be a clause of a goverment bailout package. I don't know much about this sort of stuff but they seemed to think there's no doubt Virgin would be continuing.

 

[Hawk Dork]

I've got a bunch of Velocity points, had a look at the online shop last week. Hopefully they are redeemable in future for flights because they are worth fu** all otherwise.

Pretty sure they will want to rebuild on past loyal customers

 

[craigos]

Was listening to Hutchy and Barrett's podcast today, they both reckoned that going into administration would be a clause of a goverment bailout package. I don't know much about this sort of stuff but they seemed to think there's no doubt Virgin would be continuing.

They seem about as qualified to comment on it as me.

 

[Great8]

They seem about as qualified to comment on it as me.

They are correct for once though

 

[HardcoreGeelongFan]

Virgin getting sold to China might be the best thing yet. No billionaires with private islands being floated by the taxpayer (it's simply a matter of principle) and if Virgin was Chinese owned the prices would come down. Meaning it would force all the other airlines like Qantas to lower their prices also.

 

[the_interloper]

They seem about as qualified to comment on it as me.

Eh they convinced me, they sounded like they knew what they were on about ha ha

 

[Off The Couch]

Virgin getting sold to China might be the best thing yet. No billionaires with private islands being floated by the taxpayer (it's simply a matter of principle) and if Virgin was Chinese owned the prices would come down. Meaning it would force all the other airlines like Qantas to lower their prices also.

it would bankrupt qantas

 

[Power Raid]

Was listening to Hutchy and Barrett's podcast today, they both reckoned that going into administration would be a clause of a goverment bailout package. I don't know much about this sort of stuff but they seemed to think there's no doubt Virgin would be continuing.

going into administration makes refinancing harder and at the same time easier

it's harder because the board loses control and some bean counter with no understanding of a business, who rapes fees in a money for time model is addicted to the clock is forced to dot i's and cross t's to the letter of the law and any decision is very much process driven.

the upside though, is everything is crystalised such as debts and many contracts are void. So any investor knows exactly what they are buying and can deal with creditors, unions, banks and airports from a position of strength. No doubt the government would have said "no" to a bail out without the certainty that an administration process can bring.

 

[checkraiseulite]

why don’t u put together a few business associates PR and buy it?

 

[hamohawk1]

What would it cost the government to take over? Would it incur the existing debt?

 

[Great8]

What would it cost the government to take over? Would it incur the existing debt?

The idea of administration is that the debt will get a decent haircut and other moves can be made to shore things up. I don’t think the government will take it over but depending who purchases it they may offer some financial assistance to get them off and running. I firmly believe that another airline will get involved in some capacity and I think there may be one from outside the usual suspects who does it

 

[DidakDelight]

Could be a good opportunity for South China airlines to swoop, they’ll need to create a new brand of course to ward off the racism.

 

[Hawk Dork]

What would it cost the government to take over? Would it incur the existing debt?

Its basically this but its ok because its important and theres a virus

Illegal phoenix activity | ASIC

Fair, strong and efficient financial system for all Australians.

asic.gov.au

 

[Kram]

why don’t u put together a few business associates PR and buy it?

Guys like PR have had their arses hung in a sling with the airlines!

 

[Great8]

Could be a good opportunity for South China airlines to swoop, they’ll need to create a new brand of course to ward off the racism.

Contrary to reports saying otherwise there hasn’t been a Chinese carrier express any interest yet.
Both Wesfarmers and Macquarie Group have thrown their hats into the ring though

 

[checkraiseulite]

Redirect Notice

lel

 

[Power Raid]

why don’t u put together a few business associates PR and buy it?

wife's family owned air asia with branson and others (the parent company is tune, which reflects their link back to music in warner). They sold out to become a minor shareholder a long time back but still have a minor stake.

The purschase price was $1 but obviously had to sink in the growth capital for the airline and hotels. However the business expands through insurance and credit card clips through branding.