Dona Ferentes
Pengurus pengatur
- Joined
- 11 January 2016
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and give up international pretensions
and give up international pretensionsThere is every likely hood that private equity will pick up Virgin, strip it back to bare bones and continue operating as a low cost national airline.
I don't see any hope for getting anything for your points or from booked flights. I lost 1 million points when Ansett when broke and will burn 400k from Virgin for booked flights. I only transfer points in now just before booking flights, but that didn't workA few months back I used a bunch of Virgin points to book two business class return flights to he UK for me and the wife, the actual flights are on Etihad (partner airline).
I might have some interesting times ahead seeing how this pans out, eg if virgin goes bust are my flights on Etihad still valid??? and if I have to cancel or refund due to restrictions will if be possible if the Virgin points program no longer exists???
Hopefully if Virgin go belly up Etihad still honour the flights and issue credits or rebooking if I have to cancel.
I really hope virgin make it through this thing.
Sadly the smoke and mirrors are entanglements.... (Ansett took a decade to unwind)Your right Dona, this post from August last year, the losses were mounting up over a long period and a lot of smoke and mirrors seemed to be happening.
I don't see any hope for getting anything for your points or from booked flights. I lost 1 million points when Ansett when broke and will burn 400k from Virgin for booked flights. I only transfer points in now just before booking flights, but that didn't work
Honestly the way we are sold out to two countries :If the Chinese get full ownership, Qantas would have to watch out, the Chinese have very deep pockets.
They could subsidise a price war to put Qantas out of business, with the loose change in the ashtray.
Will all of this make Qantas share holders happy or is it big trouble for all?Qantas (incl Jetstar) is the only direct competitor so presumably the answer would be yes.
That said, if there's still some community concern about being in confined spaces (eg aircraft) and assuming Qantas puts its fares up then I'd expect at least some increase in people driving interstate. Not likely a huge number but rationally there'd be some who are what I'll term "marginal flyers" and they'll decide to steer clear of planes for a while probably.
Other than that, well the only other option is trains or buses where they operate on the same route or for Vic - Tas going by sea. Using those is normally not really a direct competition to air travel though. People who go by train are usually people who like trains. People who cross Bass Strait by ship are usually doing so because they're taking a vehicle. Neither could really be seen as direct competition to the airlines for the majority of passengers.
Will all of this make Qantas share holders happy or is it big trouble for all?
Will all of this make Qantas share holders happy or is it big trouble for all?
Investing in an airline at any time is a seat of the pants investment IMO.Investing in any airline at this point is basically speculating on there being a recovery in air travel demand and that consumers can and will pay fares high enough to make the airlines profitable. As it stands now, neither are profitable businesses - it's just that Virgin ran out of money first but Qantas won't last forever without planes in the air and paying passengers in them.
Thanks, I’ve put in a low offer for Qantas and now thinking about cancelingCould go either way Doc depends on whether the (potential) new owners take on Qantas or if they see an opportunity and also exploit as a way of finally making a profit.
Thanks, I may have to rethink about an offer I made.If someone bought Qantas shares at the beginning of the year then at the moment they've lost half their money. At least the company is still operating and isn't under administration but they've still got a lot of problems.
Air travel has collapsed to the point that even if Qantas did gain a 100% market share, that still means very few paying customers and there's the problem. Likewise if Qantas had gone bust then that wouldn't of itself have likely been enough to save Virgin.
Investing in any airline at this point is basically speculating on there being a recovery in air travel demand and that consumers can and will pay fares high enough to make the airlines profitable. As it stands now, neither are profitable businesses - it's just that Virgin ran out of money first but Qantas won't last forever without planes in the air and paying passengers in them.
Yeah, love Jackie’s too! And can see the comparison but what do you think about Qantas in all this??A very good write up on the Virgin situation, as I said earlier maybe Australia hasn't got a big enough population for two major airlines, IMO it is the same reason Kaufland decided to pull the pin on Australia.
https://www.abc.net.au/news/2020-04...ustralia-cannot-sustain-two-airlines/12169620
Australia is a great Country and punches way above its weight in the first World, but it still only has a population of 25million, it isn't a big marketplace.
We think we are a big dog in the scheme of things, but in reality we are a Jack Russell, Stubborn, Fearless, Intelligent, Energetic, Athletic, and Vocal, but very small.
Just my opinion and I do like Jack Russell's, had to put mine down last year.
A few years ago I bought Qantas at about $1,but sold them as soon as there was a reasonable profit, Qantas is a quasi Government airline, same as the big 4 banks are semi government institutions so relatively safe.Yeah, love Jackie’s too! And can see the comparison but what do you think about Qantas in all this??
Do you think the Queensland government should have a stake in an airline?The short list of suitors for the carcass is finalised.
https://www.abc.net.au/news/2020-05...uitors-to-take-over-virgin-australia/12258458
ABC News can confirm the shortlist contains four bidders: private investment firm Bain Capital, private equity firm BGH Capital, US aviation investor Indigo Partners and global investor Cyrus Capital Partners.
The problem is the ACCC has stated they want a full service airline, not a State airline, having a State Government as a minority shareholder doesnt make sense, they would be in a compromised situation stumping up taxpayers money and possibly losing the lot.Do you think the Queensland government should have a stake in an airline?
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