Aviation

REVEALED: The final two bidders for Virgin Australia

Huntley Mitchell

Huntley Mitchell

The next stage in the sale of the business and assets of Virgin Australia is underway, with the airline’s administrators having made a decision on the final two bidders.

After assessing the five non-binding indicative proposals received on Friday, Deloitte’s administrators and their advisors have selected Bain Capital and Cyrus Capital Partners as the final two bidders.

Lead administrator Vaughan Strawbridge said both parties are well-funded, have deep aviation experience, and see “real value” in Virgin and its future.

“We would like to thank all interested parties for the strong interest they have displayed in the business and their commitment to the process over recent weeks,” he said.

“We will now spend the coming weeks facilitating in-depth bidder engagement with the stakeholders of the business and work closely with both preferred bidders in the lead-up to binding final offers being received.

“The strong interest coming from all parties has generated the competitive tension we have sought that is important in a process such as this, and we are in a strong place when it comes to delivering the best possible commercial outcome for all creditors, and to see a strong and sustainable Virgin Australia emerge from this process.”

BGH Capital and Indigo Partners were the other two shortlisted bidders for the airline, while Brookfield – which was originally in the bidding race for Virgin, but pulled out over concerns about the process – reportedly surprised the administrators by putting forward an eleventh-hour bid on Friday.

Strawbridge said it was still the intention to have a binding agreement in place by 30 June.

“There will also be speculation that entities associated with the parties that have not moved into this next phase, as well as others, could become involved in some capacity with the remaining parties,” he noted.

“That will, of course, be a matter for them.”

Transport Workers’ Union (TWU) national secretary Michael Kaine said it was now up to the final two bidders “to show they can follow through on their commitment to ensure the best outcome for the Australian community and Virgin workers”.

“The TWU remains focused on bidders willing to engage constructively with the workforce and its representatives, which are planning to get the fullest possible Virgin back in the sky and which have a strong commitment to staying with the asset for the long term,” he said.

Kaine also blasted the federal government over its role in the administration process for the beleaguered airline.

“The federal government continues to jeopardise a successful outcome by staying a silent and passive observer, rather than assisting the administration process by making clear funding and regulatory commitments to guarantee the future of the airline,” he said.


Featured image: iStock/Andrew Hanlon

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Tourism

Linkd Tourism appoints new trade account manager

Here’s some positive recruitment news to offset some of the negative redundancy news that’s been doing the rounds in the travel industry lately.

Share

CommentComments

Aviation

YIPPEE! Virgin launches new Aussie routes, brings back ‘Happy Hour’ sales

The only thing we at Travel Weekly love more than new routes is cheap airfares, and this story features both! Well, except wine, of course – we value wine above almost everything.

Share

CommentComments

Travel Agents

Flight Centre gains access to additional funding to offset COVID-19 impacts

Skroo’s stress ball has scored a well-earned break after Flight Centre managed to secure some much-needed funding.

Share

CommentComments

Hotels

Hotel Wrap: Event hotels to give away 1,200 nights, Crystalbrook offers $100 bar tabs to interstate guests + MORE

Planning a domestic escape for your clients? Lucky for you, we’ve got a mix of deals, offers and openings to suit all tastes in this wrap.

Share

CommentComments

Aviation

One airline set to be liquidated, while another files for bankruptcy protection

by Christian Fleetwood

Proving just how much the commercial aviation industry is struggling amid the COVID-19 pandemic comes the news of one airline on death row and another on its last legs.

Share

CommentComments

Cruise

Aurora Expeditions boss exits

by Huntley Mitchell

Did you recently send Robert Halfpenny an email but are yet to receive a reply? This might explain why.

Share

CommentComments

Road & Rail

Road & Rail Wrap: The Overland is back, road trips slowly return, Jayride market update + MORE

Time to make like Russell Coight and hit the road (and rail) because we’ve got your latest hit of industry updates from luggage cabins and back seats across the world.

Share

CommentComments

Destinations

European Union’s visitor ‘safe list’ includes Aussie travellers

While it’s a good sign that Australia made the EU’s ‘safe list’, it doesn’t exactly mean your clients can toddle off to France or Spain.

Share

CommentComments

Tourism

Travel blogger urges influencers to pay for holidays

‘Mrs. O Around the World’ has launched the #PayingOurWay movement to encourage content creators to support the travel industry.

Share

CommentComments

Aviation

Qantas launches new NSW routes, opens share purchase plan

Admittedly, both routes were originally scheduled to start earlier this year, so they’re not exactly a surprise. But don’t let that stop you from getting out the party hats and poppers.

Share

CommentComments

Wholesalers

TTC introduces ‘wellbeing directors’ for select trips

Are your clients worried about fellow travellers getting in their personal bubbles? The Travel Corporation has come up with a solution to put their minds at ease.

Share

CommentComments

Travel Agents

Concierge Travel Group rebrands following acquisition

Concierge Travel Group has a new name, and no, it’s not CTG or Travel Concierge Group.

Share

CommentComments