VAH - Virgin Australia Holdings

[McLovin]

Most of VA's international sectors are flown by the likes of SQ, EY and so on, so using their low cost base.

VA flies to Au Dhabi on it's own metal. I guess time will tell how well taking people half way and then shifting them onto someone else's metal (that also serves Australia) works. I'm pretty skeptical about using codeshares. If you fly to the 5 mainland capitals then do you really need a domestic airline to provide feed?

Do you know what restrictions SQ has on where VA can fly or were they lifted with the name change?

 

[ecnalb]

VA flies to Au Dhabi on it's own metal. I guess time will tell how well taking people half way and then shifting them onto someone else's metal (that also serves Australia) works. I'm pretty skeptical about using codeshares. If you fly to the 5 mainland capitals then do you really need a domestic airline to provide feed?

Do you know what restrictions SQ has on where VA can fly or were they lifted with the name change?

They also do an AUH > KUL wet lease for Malaysian I think it is, while waiting for the return sector to SYD.

From my understanding SQ has no restrictions. SQ and EY could want the feed from VA's domestic network from mining and resource areas, and some of the premium traffic from that VA has taken from QF.

 

[JTLP]

Ryanair is a funny one. A lot of the routes they fly are to out of the way places that happen to be near big cities. Near is a relative term in Ryan Air talk. Consider that when you fly to "Frankfurt" with Ryan Air you actually land at an airport 120km away with no rail and poor road connections. Why is that important? Because Ryan Air receives big cash incentives to fly to these out of the way airports by the local government. Infact the cash handouts are about the exact same amount as RA's profit. They do similar sort of things with smaller out of the way cities with airports. Local tourist boards etc can pay RA a fee to start flying there and bringing tourists in.

Thought this was the case as I pondered how they ran a flight to Eindhoven - an hour out of Amsterdam! Pretty good business model overall (extra charges etc - how you essentially only pay for a 'seat' on the flight). Of course some hairy moments flying but overall

Guess there isn't the capacity to do this sort of thing in AU?

 

[McLovin]

Guess there isn't the capacity to do this sort of thing in AU?

The entire Australian domestic aviation industry carries fewer passengers than Ryan Air.

A pure play Australian domestic airline under the current duopoly structure would probably not be too bad an investment. Obviously with some very big caveats. Even Ansett would still be around if it wasn't run into the ground by News Corp when it was getting killed by Fox debt and then when Air NZ (a much smaller airline) took over it was already a weakened company and was trying to compete against a very strong Qantas.

 

[Gringotts Bank]

Big drop on the weekly.

 

[notting]

Big drop on the weekly.

Big drop on the daily! Not quite the Qantas what did they do hedge oil at $100?

 

[skc]

Big drop on the daily! Not quite the Qantas what did they do hedge oil at $100?

Not sure what's going on but it probably has something to do with index trackers / rebalancers. It matched @ 35 on high volume after trading 38 all day. It is controlled by 3 major shareholders so it may no longer meet the investment / free float criteria for a range of institutions.

I haven't seen anything suggesting anything wrong operationally.

 

[notting]

ASX should be investigating who ever that was selling on the close on the 18th.

Virgin Australia has entered a trading halt ahead of an announcement by Air New Zealand about the future status of its shareholding in the Australian airline.

Virgin's largest shareholder said it's considering selling some or all of its stake in the airline, a stake currently valued at around $345 million.

Air NZ will assess other uses for the capital tied up in Virgin Australia, the Kiwi carrier said in a statement. Its chief executive Christopher Luxon resigned from Virgin Australia's board with immediate effect.

 

[piggybank]

Hi,

Does anyone know why the value of Virgin has halved since the beginning of the year?

Thanking those in advance of their reply

Cheers
PB

 

[notting]

Chinese take over by stealth -

First

HNA will make an equity investment in the Virgin Australia Group . The investment will be made in the form of a n A $159 million placement of shares at an issue price of A $0.30 per share , which represents a premium of 7.1 per cent to the last close on 30 May 2016 . Following the placement, HNA will have a shareholding of approximately 13 per cent in the Virgin

Then today I see the headline that Air New Zealand has found a buyer for its stake. The first thought I have is, - 'it will be the Chinese.'

Oh look another Chinese company of course they are are privately owned :headshake :vader: Like communists allow private airline companies amidst the dictatorship, it's as probable as allowing the people to bear arms!

Air New Zealand (NZX: AIR) is pleased to advise that it has entered into a Sale & Purchase Agreement (the Agreement) with Nanshan Group in respect of its stake in Virgin Australia . Under the Agreement, Air New Zealand will sell shares held in Virgin Austra lia at A$0.33 per share . Following the sale , Nanshan Group will have a shareholding of approximately 19.98% in Virgin Australia
Nanshan Group is a large, privately :vader: owned Chinese communist company.

 

[Scotty H]

When is this poor stock going to get some traction?

What are the issues keeping it low. From a purely business perspective they seem to be doing the one thing they should - reducing debt. All other things indicate better times ahead.

Views?

 

[polpak]

At moment patience is name of game for VAH.

Larger % share holders appear settling in, focus perhaps their own returns growth through partnerships, Dividends appear taking longer term approach with SP recovery.


Some gossip of buy-out then shifting private, time will tell if this happening, then whether price we can smile over.


Current sentiment is Hold LongTerm.


.

 

[Garpal Gumnut]

Chinese entities control VAH so it has some sovereign and tourism risk.

I've a few kopecks on them.

I might even fly them as the soup in the Qantas Lounge has gone off and in BNE QL every time I put a sugar in my cappuccino a tradies balls comes through a renovation wall.

gg

 

[Garpal Gumnut]

VAH showing some nice fundamentals at last.

Multiple large shareholders.

A premium buyout may be on the cards.

gg

 

[sptrawler]

Interesting when you compare the news in February 2019

https://australianaviation.com.au/2019/02/virgin-australia-reports-return-to-profitability/

Then their full year financial results in August 2019

https://www.asx.com.au/asxpdf/20190828/pdf/447xydy6wbtvmx.pdf

Not the sort of business for the faint hearted. IMO

 

[sptrawler]

Virgin in a trading halt, asking Government for a $1.4 billion bailout. If the Government bails them out, IMO it will be only in the name of maintaining competition, it will be throwing good money after bad going on their past record.
On the other hand could you imagine the cost of flying, if was up to Joyce to set the prices.
Just my opinion.

Virgin Australia has entered a trading halt. Trading for the airline was temporarily paused at 9.52am AEDT pending a further announcement. ... The airline is seeking a $1.4bn loan rescue package to ensure the airline's survival beyond the COVID-19 crisis, The Australian reports

 

[Dona Ferentes]

Finance Minister Mathias Cormann said the government is committed to having two competitive domestic airlines, but didn't outline what any additional industry wide financial support might involve.

"It is not our plan to take a stake in an airline," Mr Cormann told the ABC. "But let me also say that on the other side of all of this, we are committed to ensuring that through our policy settings and the like that on the other side, that we have two competitive airlines."

- just not VAH.
(p1ss off the state owned predators, please)

 

[sptrawler]

Interesting article, regards Virgin and super fund bail outs.
https://www.smh.com.au/business/com...rom-their-own-ineptitude-20200402-p54gck.html
From the articel:
Unlike Qantas, however, Virgin had been poorly managed over the best part of a decade before Scurrah arrived. In that period it had doubled its capital base but generated $2 billion of losses as it transitioned from the old low-cost carrier, Virgin Blue, to Virgin Australia with the misconceived ambition of challenging Qantas head-on as a full-service carrier.

In the previous decade, which it started with seed capital of only $10 million, Virgin Blue had generated a billion dollars of profits, paid dividends and returned hundreds of millions of dollars to its shareholders.

Should Australian taxpayers bail out Virgin’s shareholders – Singapore Airlines, Etihad, China’s HNA and Nanshan and Richard Branson – for their defective stewardship over a decade of a company that, when founding chief executive Brett Godfrey left, was highly profitable and had a $1 billion equity base?

 

[Dona Ferentes]

Australia’s top aviation asset is not airline operators, but one of the busiest and potentially most lucrative markets for domestic air travel in the world. The five international airlines that own Virgin will get no payday from their Australian investment, after fighting a losing capacity war with Qantas earlier in the decade and making a costly failed assault on Qantas’ premium market.

But any other airline that can get an Australian operating licence could come in and take up the landing slots, the aircraft, the terminals, the people and skills that are still there and service the Australian market under different colours, in a healthier operation.

And while Qantas has been happy with the status quo of an enfeebled competitor – one reason why it cynically called for a $4 billion package extended to Qantas too – many fresh entrants could give Qantas and Jetstar a run for their money.

from the AFR

 

[Dona Ferentes]

Going
All VA flights in Australia suspended, apart from one Syd-Mel flight a day and occasional OS charter

https://mobile.abc.net.au/news/2020...-australia-suspends-domestic-flights/12139020