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VAH, VIRGIN AUSTRALIA HOLDINGS LIMITED
henrietta
post Posted: May 14 2020, 07:07 AM
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In Reply To: triage's post @ May 13 2020, 09:21 PM

It's still an arm of the Qld government, and although it has performed OK so far, I think the government has pressured them into this dodgy investment.

I don't think the QIC would have thought this one up by themselves.

Cheers
J



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"Sometimes I sits and thinks, and sometimes I just sits." Satchel Paige

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triage
post Posted: May 13 2020, 09:21 PM
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In Reply To: henrietta's post @ May 13 2020, 07:29 PM

J
The proposal is that the Queensland Investment Corporation, not the public servants, will make the bid, and that they are only attempting to take a stake in a consortium that is bidding for the hulk of what was Virgin. As long as they don't attempt to bail out the creditors, who took a punt and lost, I don't necessarily see an issue with this. I think the argument that we need to national airlines is probably right and the second airline may as well remain based in Brisbane.

At this point in time the COVID crisis does not seem to have done too much economic damage - Virgin being the only major casualty so far - but let's wait until we go over the liquidity cliff in a couple of months. It is quite possible that if this deal goes through Virgin will be but the first of a number of entities being nationalised, wholly or partially.




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"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

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mullokintyre
post Posted: May 13 2020, 07:53 PM
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In Reply To: henrietta's post @ May 13 2020, 07:29 PM

They know a lot about the pointy end where first class exists.
Mick



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henrietta
post Posted: May 13 2020, 07:29 PM
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In Reply To: mullokintyre's post @ May 13 2020, 06:57 PM

Oh dear, yet another Queensland money burning scheme ......... just to try to stay in power. As if ballooning the public service isn't bad enough.
What would the QLD government and/or public servants know about running an airline ? Zero.

Cheers
J



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"Sometimes I sits and thinks, and sometimes I just sits." Satchel Paige

"No road is long with good company." Traditional
 
mullokintyre
post Posted: May 13 2020, 06:57 PM
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According to The ABC

QUOTE
The state-owned Queensland Investment Corporation (QIC) is set to make an official bid for a stake in Virgin Australia after the airline went into voluntary administration last month.

Queensland Treasurer Cameron Dick released a statement confirming the move to save the airline and retain its headquarters in Brisbane.

Mr Dick said it could take the form of a direct equity stake, a loan, a guarantee or other financial incentives.

"We have been very clear — two sustainable, national airlines are critical to Australia's economy," Mr Dick said in a statement.

"We have an opportunity to retain not only head office and crew staff in Queensland, but also to grow jobs in the repairs, maintenance and overhaul sector and support both direct and indirect jobs in our tourism sector.

"We saw the punishing increase to the cost of flights after the Ansett collapse, and this Government will not stand by and let that happen again."


Not sure if this is such a good idea. They will still be a minority shareholder at best.

Buying jobs has never ended well, no matter what level of government we are talking about.

Mick



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nipper
post Posted: Apr 21 2020, 02:41 PM
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QUOTE
The move by Virgin extinguishes its current foreign ownership, leaving expectations that would emerge from administration as a scaled-down, low-cost, domestic airline once the skies are opened up again post-pandemic.

Several serious bidders are believed to be in play, including Australian-run private equity firm BGH and another consortium involving existing shareholder Etihad Airways. Virgin’s other key existing shareholder Singapore is also expected to be eyeing a continued stake in the collapsed airline.




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mullokintyre
post Posted: Apr 21 2020, 11:59 AM
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In Reply To: mullokintyre's post @ Apr 21 2020, 09:23 AM

And right on cue, the FEDS have thrown a lifeline to REX.
From ABC NEWS
QUOTE
The Federal Government has thrown airline Regional Express (Rex) a funding lifeline, to continue servicing airports in regional Australia during the COVID-19 pandemic.

The Commonwealth Grant Agreement was signed under the COVID-19 Regional Airline Network Support (RANS) program and will see the Government pay for Rex to continue to operate 1-2 return services a week to most destinations on the Rex network.

The Queensland, Western Australian, and South Australian State Governments have also committed to fund further flights on top of what the Federal Government package is providing, with details set to be confirmed at a later date.

In a statement, Rex deputy chairman John Sharp said the funding has saved the airline from cutting services to many smaller regional communities.

"All regional and remote communities owe the Deputy Prime Minister and the Morrison Government a great debt of gratitude for providing funding to ensure they continue to receive minimal essential air links to the capital cities for medical, professional and educational needs," he said.


Remember that sage advice from airline industry
:
" to make a small fortune in the aviation businesss, you need to start with a large fotune".
Mick



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mullokintyre
post Posted: Apr 21 2020, 09:23 AM
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In Reply To: triage's post @ Apr 20 2020, 08:37 PM

There is of course REX.
The main reason they didn't do more capital city runs was the lack of landing/takeoff off slots at Melb, Bris and Sinney.
Now with Virgin gone, virtually no international flights in o or out of OZ, there are plenty of slots.
The airport owners would be almost giving them away with a free set of steak knives.
Rex might even be able to pick up some cheap jets and crews to go with them.
They already have an AOC, are used to dealing with the goons from CASA, have a large academy training more pilots in Wagga and Ballarat, and is used tio losing money (essential for any airline).
And they would not have to be banished to Terminal 4 at Melb.
Mick



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balance
post Posted: Apr 21 2020, 09:08 AM
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Well, it's now official. https://www.asx.com.au/asxpdf/20200421/pdf/...3kq7kcb12fl.pdf
Hopefully they can ring fence the debt, cut all the crap out, run a leaner operation and trade out of the mess they find themselves in.




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triage
post Posted: Apr 20 2020, 08:37 PM
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In Reply To: nipper's post @ Apr 20 2020, 08:14 PM

And yet some are expressing the view that it will be quite simple for one or two of the regionals to quickly expand and fill the void. weirdsmiley.gif Yeah ... probably not.

I read that China Southern has been blocked from taking over even though it is already a shareholder. So what are the options?

Qantas can pretty much kiss its international division goodbye for the next year or so, and I'm not sure how quickly the domestic scene will recover. So whilst they will be a near-monopoly on the Sydney - Melbourne and Sydney - Brisbane runs I think they will eventually bleed out.

I'd go for a reversion to a duopoly of one state-owned and one private carrier, in a heavily regulated market. The government may even need to take an equity interest in Qantas until they find their feet a bit more.


Also, they may have to bail out the airports sooner or later. And what about the rental car companies, the hotel chains, travel agencies ... ? It is not just a single company collapsing, it is a whole sector of the economy.

Know of any listed bus companies? (though who wants to sit on a crowded bus for 10 or 20 hours in the time of the virus).



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"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog
 
 


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