Aviation

Administrators shortlist Virgin bidders, as Velocity point redemptions resume

Huntley Mitchell

Huntley Mitchell

The administrators and advisors of Virgin Australia have whittled down the number of suitors after spending the weekend mulling over all the non-binding offers.

Deloitte’s Vaughan Strawbridge, who is leading the administration process, said in a statement released today that his team have now shortlisted a small number of “well-funded” parties with strong aviation credentials that are being invited to into the next stage.

“We are delighted by the strength of each of those on the shortlist, with parties selected being well-funded and possessing deep aviation experience,” he said.

“The parties have also worked constructively with the administration process and put forward credible indicative bids. Importantly, each has a plan for the business which can secure the future for thousands of Virgin Australia employees.

“These parties enable us to seek the best available commercial solution which we are all looking for, while meeting our responsibility to maximise the outcome for creditors and see the airline continue as one of the country’s two carriers serving Australians across cities and regions.”

Strawbridge said the administrators were “very pleased” so far with the progress of Virgin’s administration and sale process, noting “excellent engagement from highly-credentialed parties”.

“This has been very important to ensure not only the future employment of so many passionate members of the Virgin team, but the future of Australia’s second domestic airline, which is in the national interest of Australia,” he said.

Strawbridge also noted that the administrators received more interest than anticipated from parties who are eager to be a part of Virgin Australia’s future.

“We understand some parties will be disappointed that they have not been invited to continue their interest and we hope they will respect our decision which is predicated on the business continuing and achieving the best outcome for all people impacted,” he said.

“We thank all those who have been a part of our process to date.

“We cannot comment on who the shortlisted parties are due to confidentiality commitments, but we will be working intensely with them over the next four weeks to enable binding offers by mid-June.”

This will involve the sharing of more detailed financial and operational information, management workshops and meeting with as many of the financiers, landlords, suppliers, unions, and other stakeholders of the business as possible, according to Strawbridge.

“We are very excited about embarking on the next phase of the sale process and working with the shortlisted parties to see Virgin Australia restructured and come out of voluntary administration in a strong and sustainable position,” he said.

According to mainstream media reports, the four parties that have bid their way to the next round are Bain Capital, BGH Capital, Indigo Partners, and Cyrus Capital Partners.

Deloitte noted in an update on Friday that 19 parties had access to Virgin’s data room prior to the deadline for non-binding indicative offers, and eight of these were “sufficiently advanced” in their interest.

The next stage will see the shortlisted candidates submit binding offers by 12 June, with the administrators aiming to seal a deal by the end of June.

Velocity unfreezes point redemptions

Meanwhile, Virgin’s frequent flyer program has announced on Friday that members can now redeem their Velocity Points to fly on some of its most popular domestic routes for travel from 1 September 2020.

“We’re hopeful that domestic travel restrictions and state and territory border lockdowns ease by September, and for many of us, a local holiday and catching up with interstate family and friends will be well overdue,” a Velocity spokesperson told Travel Weekly.

“We look forward to sharing more offers with our members as we emerge from the COVID-19 crisis and travel resumes more broadly.”

For those passengers who book a Virgin Australia Reward Seat or Any Seat before 1 September 2020 for travel after this time, the airline will waive fees for any changes or cancellations made until 1 September.

If passengers or Virgin cancel a flight before 1 September 2020, travellers will be refunded points/cash in full to the original form of payment, minus any booking or credit card fees.


Featured image: iStock/BeyondImages


SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Tourism

Game of Thrones studio tour and To Be Irish programme launched by Tourism Ireland

Remember when everyone in your office wouldn’t shut up about Game of Thrones? Best not show them this news, or the fanfare may return.

Share

CommentComments

Aviation

Qantas CEO airs doubts about Bonza’s ability to service new routes

by James Harrison

The battle of the airlines begins before Bonza has even put a plane in the air. We can’t wait to see what happens after lift-off.

Share

CommentComments

Aviation

Virgin Australia launch three new Gold Coast flights, restart Sydney to Canberra service

The new flight announcements have made everyone pretty excited, especially teenagers going to schoolies and adults going as toolies .

Share

CommentComments

Travel Agents

“Different doesn’t have to be worse”: Flight Centre’s Renos Rologas talks post-pandemic travel

This FCM heavyweight reckons having a travel expert at the end of the phone will be “like gold dust” for those navigating the new travel landscape.

Share

CommentComments

Cruise

Silversea announces famil winners for its champagne incentive, appoints new SVP for sales

Knowing that selling cruises can score you free bottles of champagne AND overseas trips has got our editorial team seriously reconsidering our respective career pathways.

Share

CommentComments

Wholesalers

Intrepid amps up active offering with Europe walking collection and its biggest US offering yet

The tour operator’s latest collections target those who spent lockdown binge-watching Yoga with Adriene instead of Squid Game like the rest of us.

Share

CommentComments

Hotels

Man charged for $5000 quarantine hotel rampage in Tassie

Hotel quarantine can be tough, but this guy took cabin fever to the extreme in a truly unforgettable holiday.

Share

CommentComments

Technology

Former ABC managing director Michelle Guthrie appointed as chair of TRAVLR

Michelle Guthrie will take the reigns as the new chair of the board at TRAVLR, alongside advisor and investor, Matt Berriman as the role of non-executive director.

Share

CommentComments

Cruise

Royal Caribbean reveal four cruise ships headed to Alaska in mid-2023

Get your diary out for this huge series of cruises coming mid-2023.

Share

CommentComments

Tourism

Queensland to reopen to all of Australia from Monday

Palaszczuk finally announces the date Queensland borders will reopen for fully vaccinated travellers from interstate hotspots, and what changes they can expect.

Share

CommentComments

Aviation

Fiji Airways debuts new in-flight experiences for holiday-seeking Aussies

Passengers travelling with the tropical paradise’s national carrier can (literally) rest assured they’re being taken care of with its new economy sleeper option.

Share

CommentComments

Hotels

Historic Melbourne hotel gets multi-million dollar makeover

Rendezvous Hotel Melbourne has had a modern makeover that pays homage to its turn-of-the-century origins.  

Share

CommentComments