Delta preparing for VS to go into administration

[EssexSue]

Hasn't he already been bankrupted twice? Is this a possibility? Sorry if it's a dumb question.

[Gward]

Virgin Australia owes $6.8bn to 12,000 creditors

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

[Tinkerbell]

Originally Posted by Warkman58

I think the issue is tgat with Delta having 49% and they being supported by the USGovernment, the U.K. government may not want to put money into a company not 100% U.K. owned
This was talked about in regards to IAG that any support should come from Spain

See more...

You have zero chance of a spanish government bailing out an airline, it’s about to plunge back into a deep recession that it’s only just come out of.

Personally, whilst I do not like any company going under from the local plumber to the major airlines I’d rather see small businesses bailes out than large corporations, however I understand the impact on others if they do and am not minimising that

[tspill]

I think there is also a political element.
The people on this forum are a tiny slightly skewed demographic. The vast majority of the country wont care one iota about what is really quite a small airline. So the government will also have that in mind - as to what the tax payer community as a whole will think.
Comparisons with the likes of Easyjet play in here as vastly more tax payers use EJ than Virgin Atlantic. So that also plays in to who the government might help.

Overall I do think for us USA holiday makers - having VS around is much better than not. I am not sure those that dont holiday the way we all do will care the same way.

[bighal]

At the end of the day in a free market, if prices are seen to be too high to the US then as always another airline will come along to take some of the pie. Always has and always will be that way.

[tspill]

Originally Posted by bighal

At the end of the day in a free market, if prices are seen to be too high to the US then as always another airline will come along to take some of the pie. Always has and always will be that way.

See more...

Exactly - if demand is there someone will seize the opportunity to fill the gap.
If Virgin does go into administration - if it genuinely is a good business, someone will buy it. If not, then clearly it isnt a good business and that would possibly suggest the government would be throwing good money after bad.
Only the business analysts looking at the detail can tell.

Economics will deliver the right answer.

[Warkman58]

Passengers per airline per year

British Airways 46.5 million
Virgin Atlantic 5.1 million, mostly via LHR

[EssexSue]

Originally Posted by Warkman58

Passengers per airline per year

British Airways 46.5 million
Virgin Atlantic 5.1 million, mostly via LHR

See more...

Out of interest how many of those BA flights are the same routes as Virgin?

[bighal]

Originally Posted by Warkman58

Passengers per airline per year

British Airways 46.5 million
Virgin Atlantic 5.1 million, mostly via LHR

See more...

If you add un EasyJet,TUI and Jet2 you get to see how small Virgun actually is. These are the figures for 2018 and you can see that 2 airlines that flew more passengers than Virgin have since gone bust..

Number of passengers
British Airways 44,142,977
EasyJet UK 40,911,471
Jet2.Com 12,170,681
TUI 11,167,287
Flybe 9,107,139
Thomas Cook 8,092,208
Virgin Atlantic 5,196,641

Originally Posted by EssexSue

Out of interest how many of those BA flights are the same routes as Virgin?

See more...

Virgin fly to about 40 destinations BA about 170... Most of the Virgin destinations BA also fly to. With Virgin not included it has been calculated that only 2% of BAs routes have no competition by any other airline.

[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.