Now that Virgin Australia found a new buyer , how do you think they'll operate?
Also, how will their Velocity be affected and their competition with Qantas? Is this a good thing for Australian consumers?
Virgin Australia sold to American Bain Capital
barozgain on 26/06/2020 - 12:50
Last edited 26/06/2020 - 12:52
Last edited 26/06/2020 - 12:52
Poll Options
- 50No clue
- 9comfort travel as before
- 5a budget airline
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Haha yeah, get rid off >50% of their staff and sell off almost all assets to make their revenue and balance sheets look good. Package the company up real nice with a red ribbon on top before trying to list it on the ASX again.
Burning 'dead wood' is a good thing, not a bad thing. If these yanks can shed a large proportion of the staff and maintain viability, that is better than the entire airline folding and everyone getting the #ss. These prospective American buyers have clearly/unequivocally stated that their plan is to return the airline to its original model, i.e. a budget/no frills largely domestic-travel service (so this 'poll' seems a bit pointless … the answer is already common knowledge/has been declared). Good for them/smart, that is what Virgin should have stuck with in the first place.
Lol, the only thing private equity companies care about is liquidating their position and turning a profit, NOT viability. Look what happened to Dick Smith or David Jones. Same with Inghams, sold off all their assets and quickly list on ASX. Good? i dont think so.
Maybe it can go bankrupt 10 times before we allow a Arab or Chinese company to buy it? JK they will all collapse except Qantas.
I would suggest getting more details of the current status from a reliable news site:
https://www.abc.net.au/news/2020-06-26/virgin-australia-bidd…- One bidder dropped out, but (as netjock mentions above) bond holders have indicated they will be submitting an alternate bid for consideration
- Bain has indicated "…retaining thousands of jobs, honouring all employee entitlements, establishing an employee ownership or profit sharing scheme, carrying forward all travel credits and Velocity frequent flyer booked flights…" and "…strengthen Virgin's regional services and ensure the airline emerges offering exceptional experiences at great value while continuing to service business travellers, as well as those of us travelling for fun or to visit loved ones…"
Sounds like they'll be doing a hybrid airline approach, similar to AirNZ with a variety of service/fee price points, although then again which airline isn't doing this in this day and age.
Going from what they were good at historically (when they turned a profit) they'll be culling more of the bells and whistles that stacked them against Qantas and taking more of a budget/mid market approach.
I reckon they will (should) ditch even the 'mid-market' approach/cost /price of tickets. If they want to forge a 'point of difference' airline here in Aus-land, they will essentially copy Tiger's model but operate it with reasonable integrity/efficiency (unlike Tiger). Much like how many budget airlines operate in the US.
The whole airline industry is pretty buggered, at least in the short term. Who knows what will happen?
I do, Slim. It will be like this:
Qantas will reign supreme in the short term (for the first 3 months after all interstate borders reopen).
The new yankee owners of Virgin will then encroach, and prices will be quite good all round, for the subsequent 3 months.
An effective/protective SARS-CoV-2 vaccine will be confirmed by about December 2020 or Jan 2021, and it will not be long at all before it is 'mass-produced'/administered to anyone who wants it in developed countries.
International travel will recommence, with some old players in the aviation industry, and some new ones.
Best way to build a small fortune?
Build a big fortune and then buy an airline.
Bain capital was founded my Mitt Romney.
They normally buy out companies, load them with debt and sell off the pieces.
I wonder what their plan is for Virgin?
Your words are flawed Sez7. Losing something you had is the opposite of building something.
From AFR:
Murphy describes the new-look Virgin as being positioned similar to where it is now but with less emphasis on servicing the elite who use business club lounges.
"I think largely the positioning from a customer perspective will be very similar to where it is, but maybe a little more value focused," he says.
"We interviewed six or seven thousand customers over the past couple of months to figure out what they really care about," he says.
"You know, aside from the table stakes of safety, obviously price and scheduling, convenience are No. 1 and No. 2 by a country mile.
"Things like a fancy club and fancy meals and all of that are relevant to a very small portion of customers.
"But for the vast majority of customers, they just don't value that as much. We will work with Paul (Scurrah) and his team to put a finer point on this."
consumers
Customers please.
I know most people are the former with all that entails but I don't consider myself that.
I just want my money back from Virgin. Booked flights for QLD in September but they will only provide credit for a future trip.
Charge it back.
how does one do that?
Through your credit card / financial institution.
@mreddie: Erm … this is a company right on the edge of oblivian, Mr Talking Horse. You would have about as much chance of getting a cash refund from T-freakin-AA.
I do feel for ya, but just accept that under current circumstances there will be no 'cash refund'. The sooner you accept that and 'draw a line under it', the more soundly you will sleep, forever more. Maybe the new 'seppo' owners will throw you a bone.
Namaste
What was priceless was the sign language woman at Scomo's press conference really strugglng to sign 'virgin' multiple times today.
Puerile
I have worked for BAIN in a different acquisition.
Not good honestly. Cyrus had better plans for staff and for long term growth of the Airline along with focusing on the 'Australian' aspect and preserving that.Virgin AU has to be sold again (may be within 5-6 years) with the baseline net profit 40% of purchase price.
Political pressure from US bosses worked. Its Mitt Romney + Co.
Cyrus was not being responded to kindly due to 'unknown reasons'.This story does not end here :)
Is that the mob that own the Red Sox and Liverpool FC? Checking … no.
Will turn it into Dick Smith of aviation.
Administrators were to make a decision by 30th June. Bond holders were putting up a proposal. little details therefore pretty suspect.