VA ceases international ops, 90% dom reduction
#46
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#47
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Phil Coorey in the AFR today (who is usually pretty reliable) says the government is going to let VA collapse, although it wants a two airline market and will assist in a new entrant.
And something that should send a chill through every Australian traveller...
https://www.afr.com/politics/federal...0200401-p54fv6
The federal government is likely to facilitate the entry of a new carrier into the domestic market, rather than bail out Virgin Australia, should the struggling airline not survive the coronavirus crisis.
...Senior government sources told The Australian Financial Review that when the government insisted repeatedly that Australia must still have two strong airlines on the other side of the coronavirus catastrophe, that did not necessarily include Virgin.
It would not grant Virgin's wish for a $1.4 billion loan because it did not want to be saddled with an equity stake in a business that was already doing it tough before the virus crisis.
...
But should the airline fail, "steps will be taken to get another carrier to enter the market'', a government source said. "Barriers would be lowered.''
...Senior government sources told The Australian Financial Review that when the government insisted repeatedly that Australia must still have two strong airlines on the other side of the coronavirus catastrophe, that did not necessarily include Virgin.
It would not grant Virgin's wish for a $1.4 billion loan because it did not want to be saddled with an equity stake in a business that was already doing it tough before the virus crisis.
...
But should the airline fail, "steps will be taken to get another carrier to enter the market'', a government source said. "Barriers would be lowered.''
The source said that if Virgin did go under, a likely entrant would be Irish budget carrier Ryanair.
#48
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Air NZ could fly Au domestic routes if it wanted to. (And did pre 2001 with Ansett)
Australian - NZ single aviation market is very different to most counties, in that it allows foreign owned airlines to operate domestically. VA is 91.25% foreign owned. Not allowed in USA for example.
Australian - NZ single aviation market is very different to most counties, in that it allows foreign owned airlines to operate domestically. VA is 91.25% foreign owned. Not allowed in USA for example.
#49
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Air NZ could fly Au domestic routes if it wanted to. (And did pre 2001 with Ansett)
Australian - NZ single aviation market is very different to most counties, in that it allows foreign owned airlines to operate domestically. VA is 91.25% foreign owned. Not allowed in USA for example.
Australian - NZ single aviation market is very different to most counties, in that it allows foreign owned airlines to operate domestically. VA is 91.25% foreign owned. Not allowed in USA for example.
#50
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That's a complete and total misrepresentation of what Coorey wrote. As he states, the government's position is that it's up to the state-owned entity shareholders, SQ and EK, to support VA if they wish. If they don't, the government won't step in, just as they won't step in to support QF either. The government won't be supporting either airline; they will be supporting a competitive domestic airline market, irrespective of which two major airlines that turns out to be
#51
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I'd say it's a dead on balls representation of the government's position, and the first freakin paragraph of the article. But you can think whatever you want.
#52
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Virgin have announced Syd-Mel is the only domestic route until further notice and also international ops:
As a major Australian carrier we are pleased to support the Government in getting Australians home and maintaining important freight links into the country. For a limited period, we will be operating one return flight per week between Los Angeles and Brisbane, and two return flights per week between Hong Kong and Brisbane. These flights can be purchased through our website.
Flight Days of operation Timing (local time zone) Operating period One-way all inclusive fares
BNE - HKG Mon, Fri. Dep 1000 Arrive 1700
From Fri 10 April to 1 May 2020 AUD $625*
HKG - BNE Tue, Sat Dep 0900 Arrive 2010
From Sat 11 April to 2 May 2020 HKD $2,983*
BNE - LAX Wed Dep 1105 Arrive 0710
From Wed 8 April to 29 April 2020 AUD $855*
LAX - BNE Thu Dep1115 Arrive 1815
From Thu 9 April to 3 May 2020 USD $475*
As a major Australian carrier we are pleased to support the Government in getting Australians home and maintaining important freight links into the country. For a limited period, we will be operating one return flight per week between Los Angeles and Brisbane, and two return flights per week between Hong Kong and Brisbane. These flights can be purchased through our website.
Flight Days of operation Timing (local time zone) Operating period One-way all inclusive fares
BNE - HKG Mon, Fri. Dep 1000 Arrive 1700
From Fri 10 April to 1 May 2020 AUD $625*
HKG - BNE Tue, Sat Dep 0900 Arrive 2010
From Sat 11 April to 2 May 2020 HKD $2,983*
BNE - LAX Wed Dep 1105 Arrive 0710
From Wed 8 April to 29 April 2020 AUD $855*
LAX - BNE Thu Dep1115 Arrive 1815
From Thu 9 April to 3 May 2020 USD $475*
#55
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ABC.net.au Virgin Australia suspends domestic flights during coronavirus crisis
VA web site---> https://www.virginaustralia.com/au/e...travel-alerts/
Virgin Australia is suspending all its domestic flights except for a single Sydney to Melbourne return service, which will run once per day, except for Saturdays.
It is understood the suspension will start tomorrow
Key points:
It is understood the suspension will start tomorrow
Key points:
- The airline will continue to monitor passenger numbers and adjust their capacity requirements as necessary
- It says it will continue to provide cargo transport and operate charter flights for essential workers and to assist the Government in bringing Australians home from overseas
- Virgin would not confirm any additional job losses, after previously announcing 8,000 workers would be stood down
#56
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There are more opportunities for freight at the moment, Cathay had 905pax fly it’s network one day last week as an example of the downturn. I suspect VA will run a few pax aircraft as freighters in the interim, and their HKG flights are likely to be profitable in that context, there is a 14 day wait for airfreight ex HKG to Aus in a lot of cases.
#57
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Still it is up to the owners of VA to bail it out - they are after all owned by state controlled/influenced airlines. Otherwise if the Shareholder want taxpayer support they should turned all their Shareholder loans to equity then I would support the government perhaps lending the company some money, guaranteed by its owners jointly and severally and secured against real assets, repayable before any dividends can be declared.
Otherwise if it gets to the worse case scenario once the administrator is in get private capital around to buy the operation and restart it with no shareholder debt, take on the debt needed to run a solid domestic operation. If there is no private capital the taxpayer should come in at that point.
#58
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#59
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#60