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Bondholders miss out on full returns
The report also revealed US private equity firm Bain Capital is offering $3.5 billion for Virgin Australia, with the return to the airline's unsecured creditors estimated between 9 and 13 cents on the dollar.

Virgin has more than 10,000 creditors, the bulk of which are its 9,000 employees, but which also include bondholders and aircraft lessors.

Bain's offer includes the payment of all $450 million in worker entitlements and all $2.3 billion of debt Virgin owes to secured creditors.

Deloitte estimated the return to unsecured bondholders would be between $462 million and $612 million.

There will be no return to Virgin's major shareholders which include Singapore Airlines, Etihad Airways, China's Nanshan Group and HNA and Sir Richard Branson's Virgin Group.
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US private equity firm Bain Capital is the new owner of Virgin Australia, with the largest group of creditors voting in favour of the $3.5 billion sale on Friday.

Unions representing many of Virgin's 9,000 employees voted yes to the sale of Australia's second-biggest airline at a lengthy creditors meeting.

Key points:

• Virgin Australia's $3.5 billion sale to Bain Capital had been expected to pass with the backing of key unions and the Virgin Group
• The airline will no longer be a full-service carrier, operating with a far smaller fleet and more limited routes
• Bain has vowed to pay out all worker entitlements and honour travel credits

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The Boston-based firm has vowed to keep thousands of jobs, honour all employee entitlements and carry forward all travel credits and Velocity frequent flyer booked flights.

It has also said it will invest in regional services, although they will be likely cut down.

Virgin will no longer operate as a full-service carrier like Qantas, although the revamped airline will maintain key routes internationally.

When flights resume post-COVID, the airline will be operating a much smaller fleet of Boeing 737s.
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Despite being an 'all Boeing 737' airline for now, Virgin eyes a comeback to routes further afield, including Los Angeles

Despite jettisoning its internationally-configured Airbus A330 and Boeing 777 aircraft, Virgin Australia is mapping out its return to overseas flying: particularly to the United States, as well as New Zealand.Although the airline will run an all-Boeing 737 fleet in the short term, as time progresses and international travel restrictions ease, a new type of aircraft is set to join the Virgin Australia fleet, allowing it to fly from continent to continent.

Speaking at today's CAPA Australia Pacific Aviation Summit, Virgin Australia CEO Paul Scurrah confirmed that “we do intend to go back to the markets we were flying in … and commit to a new widebody fleet.”

Closer to home, “if New Zealand opened up soon, we’d jump at it, because we’ve got aircraft we want to deploy. New Zealand is a part of our future plan, so as soon as we can be back there, the better.”
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Virgin Australia CEO Paul Scurrah will step down from his role after a year of turmoil at the struggling airline.
Paul Scurrah has resigned as chief executive of Virgin Australia, following a year of turmoil for Australia’s second airline.

The ABC reports the announcement to the ASX is expected soon.

Speculation is mounting Mr Scurrah will be replaced by former Jetstar boss Jayne Hrdlicka as part of new owner Bain Capital’s plan to transform the airline into a low-cost carrier.

There have been reports of tension between Bain and Mr Scurrah, who wants Virgin Australia to keep operating as a full-service airline.

The Australian Financial Review reports Mr Scurrah’s resignation will be announced today. Sources told the publication other executives may follow him.

Meanwhile, unions have suspended talks about enterprise agreements at Virgin Australia amid the uncertainty.
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Nine members of Virgin Australia’s board, including chairperson Elizabeth Bryan, have tendered or indicated their resignations, while the airline finalises a sale to Bain Capital.

Bryan and five others – Trevor Bourne, Kenneth Dean, Allan Houston, Judith Swales, and Marvin Tan – have resigned as the company’s directors effective 20 October, the company said today in a disclosure to the Australian Securities Exchange.
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