Delta preparing for VS to go into administration

[boo2]

Originally Posted by mickeyspal

I hope it doesn't go bust, we have a flight paid in full for Nov, but more to the point can you imagine the cost of a flight if only BA can get you there ,they can charge what they want. We saw it happen after TC went bust.
Not to mention the staff that will be fighting for even less jobs

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I hope they don’t go bust, it’s a horrible situation for their staff. It’s not only BA and Virgin that fly to US. If only flown once with BA and once with virgin, never with TC ( when they were about) or with TUI. If flown numerous times with a lot of different companies,

[Warkman58]

Originally Posted by wombat girl

Our problem is BA dont fly direct from Manchester - VA do.

It is bad enough driving down to Manchester and dread flying via london to WDW.

Already hit by the TC faliure and will be hit by the VA failure - if it happens.

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Go indirect, Man to Dublin or into Paris/Amsterdam/Frankfurt etc

There are piety of airlines that do the TATL route, but you may have to go indirect.
If the demand from MAN is there, the slots could be taken up by other airlines like BA to carry out TATL
I woukd imagine the reason why BA don’t fly from MAN is there is not enough demand to facilitate so many airlines on that route, or it’s an agreement with American Airlines?

[Hank]

I think the demand from Manchester is there when you consider Thomas Cooks ( TC ) were operating a flight a day to MCO sometimes 2 from Manchester. Having said that I was surprised that nobody came in when TC went down.

Walkman 58 you might be right about some agreement with AA.

[SimonB]

When I worked for bmi they tried Manchester transatlantic on the A330 with a view to getting rights to go from Heathrow. If memory serves me correctly they ended up pulling Manchester in favour of going East in the A330’s due to transatlantic agreement rights restrictions. The revenue just wasn’t there with connecting traffic being huge at Heathrow.

[florida addict]

Administration will allow huge write off of debts and they will restart with a clean sheet. It’s the small businesses and suppliers who deal with virgin and are owed thousands that will suffer here

[bighal]

Originally Posted by florida addict

Administration will allow huge write off of debts and they will restart with a clean sheet. It’s the small businesses and suppliers who deal with virgin and are owed thousands that will suffer here

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No, Virgin would basically be toast and would lose its AoC. Its not the same as going into administration in the US, debts have to be repaid not written off unless nothing is left to sell. Going into administration in the UK basically means the administrator would have to sell everything to repay all of Virgins debts which would include all its owned aircraft, its landing slots and buildings it owns. There would be nothing left. First though they would try and sell it as a going concern wiping out the 2 shareholders but no one will want to buy it with its current debts in today's climate. Once into administration not many companies survive sadly.

[Warkman58]

Article 8n tomorrows Daily Telegraph, that as the bail out by the government is off the table, Branson is looking for a buyer to complete by end May and 5 companies have shown interest.

[YorkshireT]

Originally Posted by Warkman58

Article 8n tomorrows Daily Telegraph, that as the bail out by the government is off the table, Branson is looking for a buyer to complete by end May and 5 companies have shown interest.

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Yes I did a thread about this having seen it in the Sunday Telegraph - telegraph/business...tlantic-buyer/

My worry is that we heard how TC was bound to be sold etc. I’ll believe Virgin is sold when it happens.

[bighal]

Originally Posted by Warkman58

Article 8n tomorrows Daily Telegraph, that as the bail out by the government is off the table, Branson is looking for a buyer to complete by end May and 5 companies have shown interest.

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Its hit Bloomberg as well. I can't see anyone buying in to be honest once they look at the books unless they had billions to lose. Not being able to get a additional bank or Government loans will not help one bit.
If they are not careful some of the loans they have already taken out in the past could be called in soon if they think they might not get anything back...

If I had a cancelled flight with Virgin I would be demanding a cash refund asap and not be accepting any voucher or delays in payments.

[Guest]

Originally Posted by Gward

Virgin Australia owes $6.8bn to 12,000 creditors

I hope the UK government does due diligence before supporting Virgin Atlantic!

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I'm not sure why what VA owes to creditors has any bearing on whether VS gets a bailout or other help.

They are completely different companies the only thing they have in common is they have an association to the Beardy One - he doesnt own either outright and they don't have stands in each other