Virgin Australia Goes Into Voluntary Administration
Apr 20, 20, 2:45 am
#1
Original Poster
Join Date: May 2011
Programs: Delta Diamond; Marriott Silver Elite
Posts: 151
Virgin Australia Goes Into Voluntary Administration
Apr 20, 20, 6:15 pm
#4
FlyerTalk Evangelist
Join Date: Apr 2001
Location: MEL CHC
Posts: 20,524
Virgin Australia newsroom https://newsroom.virginaustralia.com...administration
https://www.executivetraveller.com/n...administration
news.com.au---> https://www.news.com.au/travel/trave...8b259667ed36af
ABC.net.au -> https://www.abc.net.au/news/2020-04-...ation/12167814
As expected.
Has been struggling for some years
Yesterday [Updated yesterday at 8:07pm] https://www.abc.net.au/news/2020-04-...vency/12165550
21 April 2020: Virgin Australia Holdings Limited (ASX: VAH) (Virgin Australia Group or Group) has entered voluntary administration to recapitalise the business and help ensure it emerges in a stronger financial position on the other side of the COVID-19 crisis.The Group’s Board of Directors has appointed Vaughan Strawbridge, John Greig, Sal Algeri and Richard Hughes of Deloitte as voluntary administrators of the company and a number of its subsidiaries. Velocity Frequent Flyer, while owned by the Group, is a separate company and is not in administration.
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https://www.executivetraveller.com/n...administration
Virgin Australia enters voluntary administration
Virgin Australia's board has appointed Deloitte as voluntary administrators of the company.
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Virgin Australia's board has appointed Deloitte as voluntary administrators of the company.
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ABC.net.au -> https://www.abc.net.au/news/2020-04-...ation/12167814
As expected.
Has been struggling for some years
Yesterday [Updated yesterday at 8:07pm] https://www.abc.net.au/news/2020-04-...vency/12165550
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"The sale and subsequent repurchase of part of the frequent flyer business has left it loaded with debt, with most of the fleet and the frequent flyer business locked up by secured creditors."
He said a government bailout, if put in place without insolvency, would "delay and obstruct the necessary restructuring and increase the risk that Virgin ultimately ends up like Ansett".
He also pointed out that about 75 per cent of the debt is believed to be owed to foreign lenders.
"A bailout of Virgin without an insolvency is likely to result in hundreds of millions of dollars being transferred from Australian taxpayers to foreign lenders," Mr Rochford said.
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"The sale and subsequent repurchase of part of the frequent flyer business has left it loaded with debt, with most of the fleet and the frequent flyer business locked up by secured creditors."
He said a government bailout, if put in place without insolvency, would "delay and obstruct the necessary restructuring and increase the risk that Virgin ultimately ends up like Ansett".
He also pointed out that about 75 per cent of the debt is believed to be owed to foreign lenders.
"A bailout of Virgin without an insolvency is likely to result in hundreds of millions of dollars being transferred from Australian taxpayers to foreign lenders," Mr Rochford said.
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Last edited by Mwenenzi; Apr 20, 20 at 7:54 pm Reason: adedABC.net.au link
Apr 21, 20, 2:14 am
#5
Join Date: Apr 2012
Location: perth
Programs: SPG(LTG), QANTAS gold, Korean, Accor Plat
Posts: 1,500
Depends on whether they make you an unsecured creditor or whether they will honor bookings. When Ansett went under my credit card gave me a full refund as they cancelled all services.
Apr 21, 20, 11:42 pm
#6
Join Date: Jul 2007
Location: San Francisco/Sydney
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Posts: 7,980
It shouldn't matter. Your credit card relationship is with your card issuer. Whether they can get the money back from Virgin is their issue, not yours.
Apr 22, 20, 12:14 am
#7
Suspended
Join Date: Nov 2018
Posts: 457
There is no bankruptcy. Nothing like Ansett. Staff are still being paid, maybe not as much.
Apr 22, 20, 5:28 am
#8
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Join Date: Mar 2002
Location: Canada, USA, Europe
Programs: UA 1K
Posts: 31,452
What does it matter what channel you use? If the card issuer doesn't get the money from an airline in administration, you won't be getting any money from the card issuer.
Apr 22, 20, 8:22 am
#10
Join Date: Sep 2015
Programs: Flying Blue, Miles & Smiles
Posts: 433
Chargeback is not a service offered by your bank. It is offered by the payment mediator (Visa, Mastercard...).
A chargeback is bank to bank. The merchant's bank has to demonstrate that the conditions were met (within the operating conditions set by Mastercard, Visa, etc) and if not they refund the amount and then reclaim that from the merchant. It is not something that banks really have a great deal of wiggle room. If the Merchant is in administration - that means the merchant's bank may not be able to reclaim the money. But it does not stop them being obliged to pay it back. The system is supposed to encourage banks to be responsible in giving access to receive payments by Visa, Mastercard, etc....
Merchants who suffer high chargeback rates get punished - not just with the admin fee but the banks may remove their access to Visa, etc, or may require a higher "setback" - money they keep hold on in case of future chargebacks.
There may be additional statutory protections imposed by governments on their banks, but chargebacks are run by Visa, Mastercard, etc, and are fairly standardised globally.
Last edited by ahopkins767; Apr 22, 20 at 8:33 am
Apr 22, 20, 11:44 pm
#11
Join Date: May 2006
Location: GA
Programs: VA-PLT, QF-GLD, DL-GM, UA-ex1K, AA-exPLT, HH-DM, IHG-PLT, MR-GLD
Posts: 8,228
Keep an eye on things because if VA is dissolved or goes into liquidation then it may change, but for now it's just business as usual.
If your credit card issuer decides that you are owed a refund, they will give you a refund. It's part of their consumer protection services.
They will go after that $$, but even if they fail you keep your refund.
Apr 23, 20, 7:52 am
#12
Join Date: Mar 2014
Location: bne
Programs: Velocity Gold, AIRNZ Elite, Qantas Silver ,Hilton Diamond
Posts: 1,281
Apr 23, 20, 7:30 pm
#13
FlyerTalk Evangelist
Join Date: Nov 2004
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Posts: 21,935
If the carrier fails to provide a service, bankrupt or no, then you can be entitled to charge back if paid with a Credit Card. If the banks cannot recover from the merchant, it is the bank's problem.
Last edited by serfty; Apr 23, 20 at 7:53 pm
Apr 24, 20, 3:48 pm
#14
Join Date: Feb 2007
Programs: NZ Koru
Posts: 6,365
I was looking at my New Zealand Westpac MasterCard, according to there website. You can claim back 30 days from the statement issued for that transaction, problem being with an Airline you off the make the payment months before you were to get the service.
Ive got an AKL-BNE-DPS trip that was planned for this Monday, VA obviously canceled the flights. But would only offer an travel credit, even though they are very unlikely to be able to ever be used by some based in New Zealand.
Apr 24, 20, 10:35 pm
#15
Suspended
Join Date: Nov 2018
Posts: 457
Doesn't matter what consumer law says, you cannot get blood from a stone.
