VA ceases international ops, 90% dom reduction
Mar 30, 2020, 5:24 pm
#31
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it is not currently clear who/what request it, but VA stocks are in a trading halt this morning.
https://www.asx.com.au/asxpdf/202003...2pqktnndll.pdf
https://www.asx.com.au/asxpdf/202003...2pqktnndll.pdf
Mar 30, 2020, 5:42 pm
#32
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it is not currently clear who/what request it, but VA stocks are in a trading halt this morning.
https://www.asx.com.au/asxpdf/202003...2pqktnndll.pdf
https://www.asx.com.au/asxpdf/202003...2pqktnndll.pdf
Virgin Australia is seeking financial support from the Federal Government to survive the fallout from coronavirus crisis.The carrier, the second-biggest after Qantas, wants a rescue package of up to $1.4 billion, The Australian reported on Tuesday.
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https://en.wikipedia.org/wiki/Virgin_Australia_Holdings
Etihad Airways (20.94%)
Singapore Airlines (20.09%)
Nanshan Group (19.98%)
HNA Group (19.82%)
Virgin Group (10.42%)
ASX listed (8.75%)
Edit
ABC https://www.abc.net.au/news/2020-03-...ilout/12105654
Virgin Australia in trading halt as it reportedly seeks $1.4 billion bailout amid coronavirus pandemic
Virgin Australia has gone into a trading halt, following reports this morning the airline has asked the Morrison Government for a $1.4 billion loan to help it through the coronavirus crisis.The company on Tuesday confirmed it was seeking financial help but did not give details about the amount of the potential bailout and what it could include.
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Ratings agencies downgrade their outlook on Virgin
Virgin Australia is 90 per cent owned by offshore airlines including Etihad Airways, Singapore Airlines, Nanshan Group, HNA Group, and Richard Branson's Virgin group, which are all facing their own cash-flow challenges amid the coronavirus pandemic.
Credit Suisse analysts estimated last week that with virtually no revenue coming in, Virgin could eat up most of its $900 million cash balance by June and would require additional liquidity to survive the crisis.
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Ratings agencies downgrade their outlook on Virgin
Virgin Australia is 90 per cent owned by offshore airlines including Etihad Airways, Singapore Airlines, Nanshan Group, HNA Group, and Richard Branson's Virgin group, which are all facing their own cash-flow challenges amid the coronavirus pandemic.
Credit Suisse analysts estimated last week that with virtually no revenue coming in, Virgin could eat up most of its $900 million cash balance by June and would require additional liquidity to survive the crisis.
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Last edited by Mwenenzi; Mar 30, 2020 at 7:38 pm
Mar 30, 2020, 8:23 pm
#33
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Your post seems like wild speculation? Your link says VA plans to resume NZ flights, yet your post says the opposite.
I think we all expect VA to shrink to survive... routes will get dropped. But all international? They own most/all? of their 777 and have a great partnership with DL. I don't see that going away, DL utilizes those direct LAX-BNE/MEL flights. I don't see VA abandoning NZ entirely either, even if they just run AKL/ZQN flights, because it helps them sell those flights from LAX.
This is all assuming VA survives this thing.. but if they do they will keep the profitable international routes, why wouldn't they?
I think we all expect VA to shrink to survive... routes will get dropped. But all international? They own most/all? of their 777 and have a great partnership with DL. I don't see that going away, DL utilizes those direct LAX-BNE/MEL flights. I don't see VA abandoning NZ entirely either, even if they just run AKL/ZQN flights, because it helps them sell those flights from LAX.
This is all assuming VA survives this thing.. but if they do they will keep the profitable international routes, why wouldn't they?
Mar 30, 2020, 8:27 pm
#34
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Mar 30, 2020, 8:32 pm
#35
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Note that Qantas at the same time routinely left 3 or more B747/A380/B789 parked at LAX for 12 hours every day.
Mar 30, 2020, 8:34 pm
#36
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....... I don't see VA abandoning NZ entirely either, even if they just run AKL/ZQN flights, because it helps them sell those flights from LAX.
This is all assuming VA survives this thing.. but if they do they will keep the profitable international routes, why wouldn't they?
This is all assuming VA survives this thing.. but if they do they will keep the profitable international routes, why wouldn't they?
https://www.rnz.co.nz/news/business/...undancies-loom
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Meanwhile, Virgin Australia expected to wrap up talks with E tū and the Air Line Pilots' Association within 24 to 48 hours.
"We've regrettably had to make one of the hardest decisions anyone would ever have to make - and that is to make our New Zealand-based employees redundant," Virgin chief executive Paul Scurrah said.
"That's the consultation process started today ... we will be consulting with them over the next 24 hours to work out the way this is done."
The airline employs 200 pilots and 340 cabin crew at bases in Auckland and Christchurch.
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Meanwhile, Virgin Australia expected to wrap up talks with E tū and the Air Line Pilots' Association within 24 to 48 hours.
"We've regrettably had to make one of the hardest decisions anyone would ever have to make - and that is to make our New Zealand-based employees redundant," Virgin chief executive Paul Scurrah said.
"That's the consultation process started today ... we will be consulting with them over the next 24 hours to work out the way this is done."
The airline employs 200 pilots and 340 cabin crew at bases in Auckland and Christchurch.
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Virgin Australia looks to shut down NZ operations, 550 jobs on line
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It has been in talks with New Zealand unions today about the proposal.
The airline says it is a priority in order to safeguard its Australian operations, which it is also restructuring as it shuts down all international flights from 30 March.
"Redundancies are going to be inevitable," a spokesperson said.
Even if Virgin restarts trans-Tasman flights on 15 June as planned, it would only use pilots and crew based in Australia, she said.
"At the moment is just too costly to have the New Zealand bases as well," referring to the two bases in Auckland and Christchurch.
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It has been in talks with New Zealand unions today about the proposal.
The airline says it is a priority in order to safeguard its Australian operations, which it is also restructuring as it shuts down all international flights from 30 March.
"Redundancies are going to be inevitable," a spokesperson said.
Even if Virgin restarts trans-Tasman flights on 15 June as planned, it would only use pilots and crew based in Australia, she said.
"At the moment is just too costly to have the New Zealand bases as well," referring to the two bases in Auckland and Christchurch.
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Mar 30, 2020, 8:39 pm
#37
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Yes I know they shut down their NZ hub; VA was overextended in NZ already and needed to shrink. But they can shrink NZ operations substantially without stopping NZ operations completely.
Mar 31, 2020, 6:32 am
#38
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VA had an abysmal -7% operating margin for their international operations in H2 2019.
Qantas international routes are profitable, but just barely at +3% for the same period.
Qantas offsets some of the losses on LAX flights by doing maintenance while the plane sits. I don't recall if VA does the same, but that could contribute to QF's higher performance.
Mar 31, 2020, 5:17 pm
#39
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Your post seems like wild speculation? Your link says VA plans to resume NZ flights, yet your post says the opposite.
I think we all expect VA to shrink to survive... routes will get dropped. But all international? They own most/all? of their 777 and have a great partnership with DL. I don't see that going away, DL utilizes those direct LAX-BNE/MEL flights. I don't see VA abandoning NZ entirely either, even if they just run AKL/ZQN flights, because it helps them sell those flights from LAX.
This is all assuming VA survives this thing.. but if they do they will keep the profitable international routes, why wouldn't they?
I think we all expect VA to shrink to survive... routes will get dropped. But all international? They own most/all? of their 777 and have a great partnership with DL. I don't see that going away, DL utilizes those direct LAX-BNE/MEL flights. I don't see VA abandoning NZ entirely either, even if they just run AKL/ZQN flights, because it helps them sell those flights from LAX.
This is all assuming VA survives this thing.. but if they do they will keep the profitable international routes, why wouldn't they?
If they were to keep B777-300ERs maybe they should run some SYD/AKL/LAX assuming DL return to daily LAX/SYD.
Mar 31, 2020, 5:21 pm
#40
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Think about it. How many airlines will survive 12 weeks, let alone any longer, without massive restructuring/injections of cash.
So by saying they give you a refund, it gets you off their back.
No one knows how long this corona thing will take to play out. It could be a month or 3 or 6.
Mar 31, 2020, 5:24 pm
#41
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If talking about a route I would have said AKL-SYD not AKL/SYD
Mar 31, 2020, 5:40 pm
#42
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eg. when talking about VA flights to LAX, you say
BNE-SYD-MEL/LAX in travel speak, or this is how the travel industry refers to it.
Mar 31, 2020, 6:44 pm
#43
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In your example, it would be BNE/SYD/MEL-LAX
Last edited by CPMaverick; Mar 31, 2020 at 6:57 pm
Mar 31, 2020, 10:02 pm
#44
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The LAX routes had been making money, but as you indicate VA do not publish performance by route.
This link makes a statement re profitability: https://simpleflying.com/virgin-aust...-fleet-future/
Apr 1, 2020, 2:33 am
#45
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Also to add, Scurrah himself (as CEO) in September 2019 also singled out the USA as a star performer of VA's International Network, whilst also pointing out the likes of Hong Kong and the NZ flying will have to go "under review".
Source: https://www.news.com.au/travel/trave...00f4ee3f320b51
Source: https://www.news.com.au/travel/trave...00f4ee3f320b51