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Virgin Australia Goes Into Voluntary Administration

Virgin Australia Goes Into Voluntary Administration

Old Apr 20, 20, 2:45 am
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Virgin Australia Goes Into Voluntary Administration

https://www.smh.com.au/business/comp...20-p54lcd.html
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Old Apr 20, 20, 3:07 am
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Credit card refunds

Can you reverse the charge from a credit card payment
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Old Apr 20, 20, 3:21 am
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That depends on the bankruptcy laws of Australia. I wouldn't be surprised if, once the administrators take over, you can't charge back.
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Old Apr 20, 20, 6:15 pm
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Virgin Australia newsroom https://newsroom.virginaustralia.com...administration
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.
<snip>

https://www.executivetraveller.com/n...administration
Virgin Australia enters voluntary administration
Virgin Australia's board has appointed Deloitte as voluntary administrators of the company.
<snip>
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
<snip>

"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.
<snip>
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Last edited by Mwenenzi; Apr 20, 20 at 7:54 pm Reason: adedABC.net.au link
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Old Apr 21, 20, 2:14 am
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Originally Posted by LondonElite View Post
That depends on the bankruptcy laws of Australia. I wouldn't be surprised if, once the administrators take over, you can't charge back.
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.
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Old Apr 21, 20, 11:42 pm
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Originally Posted by LondonElite View Post
That depends on the bankruptcy laws of Australia. I wouldn't be surprised if, once the administrators take over, you can't charge back.
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.
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Old Apr 22, 20, 12:14 am
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Originally Posted by docbert View Post
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.
one thing is for sure. Banks(credit cards) never lose. They are not going to allow a charge back, if they haven't got the airlines funds.

There is no bankruptcy. Nothing like Ansett. Staff are still being paid, maybe not as much.
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Old Apr 22, 20, 5:28 am
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Originally Posted by docbert View Post
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.
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.
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Old Apr 22, 20, 7:39 am
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Can someone clarify if you had booked a ticket with miles is it still valid?
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Old Apr 22, 20, 8:22 am
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Originally Posted by LondonElite View Post
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.
Not correct.

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.
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Last edited by ahopkins767; Apr 22, 20 at 8:33 am
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Old Apr 22, 20, 11:44 pm
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Originally Posted by s0ssos View Post
Can someone clarify if you had booked a ticket with miles is it still valid?
Yes. The airline is still flying. Nothing operationally has changed.

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.

Originally Posted by LondonElite View Post
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.
That's not at all how it works.

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.
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Old Apr 23, 20, 7:52 am
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Deloitte fee is it too high ?

https://www.bloomberg.com/amp/news/a...-worth-127-000
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Old Apr 23, 20, 7:30 pm
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Originally Posted by OZFLYER86 View Post
one thing is for sure. Banks(credit cards) never lose. They are not going to allow a charge back, if they haven't got the airlines funds.

There is no bankruptcy. Nothing like Ansett. Staff are still being paid, maybe not as much.
That is incorrect (as far as Australia goes).

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.

Originally Posted by CPMaverick View Post
...
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.
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Last edited by serfty; Apr 23, 20 at 7:53 pm
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Old Apr 24, 20, 3:48 pm
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Originally Posted by serfty View Post
That is incorrect (as far as Australia goes).

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.
Does anyone know how this applies under New Zealand Law? For example for tickets purchased and issued by Virgin Australian Christchurch NZL merchant processing?

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.
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Old Apr 24, 20, 10:35 pm
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Originally Posted by serfty View Post
That is incorrect (as far as Australia goes).

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.
you seriously think a bank is going to lose any money ?

Doesn't matter what consumer law says, you cannot get blood from a stone.
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