https://www.canberratimes.com.au/story/ ... /?cs=14231The Morrison government is holding firm against Labor's and union demands to rescue Virgin Australia after the troubled airline
Good newsBlack Orchid wrote: ↑Tue Apr 21, 2020 6:07 pmFinally some strong words from Frydenberg! Well done!
"The Government was not going to bail out five large foreign shareholders with deep pockets who, together, own 90 per cent of this airline," Mr Frydenberg said.
https://www.abc.net.au/news/2020-04-21/ ... /12167814
Typical Labor wanting us to bow to their Chinese brethren ...
https://www.canberratimes.com.au/story/ ... /?cs=14231The Morrison government is holding firm against Labor's and union demands to rescue Virgin Australia after the troubled airline
https://www.smh.com.au/business/compani ... 54lvj.htmlWith Queensland offering $200 million to support the company, the Victorian government opened talks with Mr Fox to relocate some of the airline’s operations to his Avalon Airport outside Melbourne, according to sources familiar with the discussions.
The weekend negotiations came close to a deal before Mr Andrews and Victorian treasurer Tim Pallas decided not to go ahead, but the airline could revive the idea as it searches for government support as well as new corporate investors from a list of 10 potential bidders.
"Virgin have been talking to lots of governments, including us – there's no secret about that," a Victorian government spokesperson said.
"But any investment of significant scale from the government has to be contingent on it being a good deal for Victoria and bringing jobs to Victoria and that’s not currently the proposition."
The state options are seen as crucial to Virgin’s survival after the airline’s board admitted the need to restructure the business, naming Deloitte as administrators and launching a search for new investors.
Virgin administrator and Deloitte executive Vaughan Strawbridge said the company would not launch redundancies and would protect its 16,000 employees and contractors.
"We’re comfortable and confident that we have sufficient funding in order to continue to trade during this period to restructure the business," he said.
While Labor called on the federal government to buy a stake in Virgin or lend it money, Prime Minster Scott Morrison made it clear the company should turn to private investors as a priority.
Treasurer Josh Frydenberg named former Macquarie Bank chief Nicholas Moore as an envoy to talk to the company, but the federal government played down any idea this would lead to an equity investment or debt guarantee from the commonwealth.
Mr Morrison described the move into voluntary administration as the "road out" for Virgin, while restating the government’s policy of having two airlines to ensure competition with Qantas.
"It is very important in usual times but it will be even more important as we emerge from the coronavirus economic crisis, ensuring that we have those carriers in place," Mr Morrison said.
The future of the airline will be decided in as little as two to three months. Mr Strawbridge said there had already been an "overwhelming" response from more than 10 potential buyers.
yesBlack Orchid wrote: ↑Wed Apr 22, 2020 9:20 amhttps://www.smh.com.au/business/compani ... 54lvj.htmlWith Queensland offering $200 million to support the company, the Victorian government opened talks with Mr Fox to relocate some of the airline’s operations to his Avalon Airport outside Melbourne, according to sources familiar with the discussions.
The weekend negotiations came close to a deal before Mr Andrews and Victorian treasurer Tim Pallas decided not to go ahead, but the airline could revive the idea as it searches for government support as well as new corporate investors from a list of 10 potential bidders.
"Virgin have been talking to lots of governments, including us – there's no secret about that," a Victorian government spokesperson said.
"But any investment of significant scale from the government has to be contingent on it being a good deal for Victoria and bringing jobs to Victoria and that’s not currently the proposition."
The state options are seen as crucial to Virgin’s survival after the airline’s board admitted the need to restructure the business, naming Deloitte as administrators and launching a search for new investors.
Virgin administrator and Deloitte executive Vaughan Strawbridge said the company would not launch redundancies and would protect its 16,000 employees and contractors.
"We’re comfortable and confident that we have sufficient funding in order to continue to trade during this period to restructure the business," he said.
While Labor called on the federal government to buy a stake in Virgin or lend it money, Prime Minster Scott Morrison made it clear the company should turn to private investors as a priority.
Treasurer Josh Frydenberg named former Macquarie Bank chief Nicholas Moore as an envoy to talk to the company, but the federal government played down any idea this would lead to an equity investment or debt guarantee from the commonwealth.
Mr Morrison described the move into voluntary administration as the "road out" for Virgin, while restating the government’s policy of having two airlines to ensure competition with Qantas.
"It is very important in usual times but it will be even more important as we emerge from the coronavirus economic crisis, ensuring that we have those carriers in place," Mr Morrison said.
The future of the airline will be decided in as little as two to three months. Mr Strawbridge said there had already been an "overwhelming" response from more than 10 potential buyers.
Who are these 10 potential buyers?
I don't mind so much if we buy a stake in Virgin, a much bigger stake than the value of the money invested, but I am dead against throwing money into a foreign owned airline with billionaire shareholders and from which the Chinese will gain most of the benefit.
I'll bet anything most of these 10 are Chinese.
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