Administrators shortlist Virgin bidders, as Velocity point redemptions resume
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
Email the Travel Weekly team at traveldesk@travelweekly.com.au
administration administrators Airline Aviation Bain Capital BGH Capital business sale Cyrus Capital Partners deloitte frequent flyer program Indigo Partners loyalty program Vaughan Strawbridge Velocity Velocity Frequent Flyer Virgin Virgin Australia voluntary administrationLatest News
Two thirds of Australians support introduction of tourism tax, survey reveals
Can you guess which generation was the most outraged at the news? Hint: It is exactly who you think!
“The consumer really just wanted more classic reward availability” – customers underwhelmed by Qantas FF shakeup
All this consumer wants is to sit behind someone that doesn't push their seat back to near-horizontal levels.
Aussie travellers warned of ‘significant’ visa shifts in destinations including Chile, US and Vietnam
To be honest are biggest advice for having a layover in the US, is just don't.
Profile: Delta CEO Ed Bastian
Bastian says the airline business isn't for the faint hearted. We're sure Alan Joyce would agree!
Final Call: Travel DAZE Exec early birds are about to expire
Much like the auctioneer at the hottest sale of the year, we're giving you one more chance to jump at this deal!
Forget the weekend! Experience Gold Coast launches mid-week travel campaign
Your boss might be a bit bothered if you jet off mid-week, but you'll be the envy of all of your Instagram followers.
Victorian Tourism Industry Council warns of losing tourism dollars to NSW & QLD
Trendy cafe's hidden in CBD laneways can only get so many tourism dollars, clearly!
AIME 2024 rustles up $330m for APAC economy
This figure is a 65 per cent increase on 2023, much alike The Nibbler staff's alcohol consumption.
Amex GBT to purchase CWT for $871m
It's big deals like this that get a firm handshake - hence the sore hands over at the CWT and Amex GBT offices.
Boeing cleanout: CEO, chair to go as safety crisis plagues the manufacturer
CEOs are falling thick and fast these days. We should have started up a bingo game with their headshots in the office.
Star boss resigns, admits retaining NSW casino licence unlikely under his leadership
The CEO resigned after 18 months in the role. 'Another one bites the dust' rumoured to be heard playing in Pyrmont.
Corporate Traveller swings amateur golfers around the globe for World Golf Competition
How're your golf skills? Consider yourself a Tiger Woods or often get quadruple bogeys? We take after the latter.
Corporate travellers to spend big on Melbourne F1 despite financial pressures
Part of the attraction is sick days after the event as corporate travellers suffer creaked necks and blown eardrums.
Bonza officially kicks off Gold Coast-Darwin route
The Flying Purple Thumb is back at it with another route. We swear, we're going to make this nickname stick!
South West Sydney Tourism launches Western Sydney Tourism Awards
Penrith's 3 consecutive NRL premierships wasn't enough? The people of Western Sydney could fill the trophy cabinet more!
Hotels vs. Airbnb: Industry leaders at odds over who should pay accommodation levy
There's not as much gore in the Hotels vs. Airbnb saga as there is in Alien vs. Predator, but it's just as thrilling!
Singapore Airlines revamps premium economy with new menu, amenity kit
Felt Singapore Airlines was lacking "the sauce" (as the kids say). Bolster belief in the carrier's je na sais quoi here.
Business Events Adelaide set for 20th Destination SA event
Destination SA turns 20! Hopefully it's not celebrated with vodka cruisers and vapes like most 20th birthdays.
Boeing’s woes delay massive Virgin Australia order
This delay means Virgin staffers will be without that new plane smell, inspiring us to sell it in a can.
All the winners from the 2023 Qantas Australian Tourism Awards
Somehow missed this news recently? Good thing you're subscribed to our fabulous newsletter!
Corporate international travel from Brisbane up 30% YOY: Flight Centre
Queenslanders seem keen to go somewhere that actually serves good beer! Sorry, we actually like Great Northern.
Amora Brisbane undergoes $30m remodelling, geared up for MICE offerings
When $30m goes into an amazing hotel to get it geared up for MICE offerings, that's amore!
Corporate Travel Management’s CEO Laura Ruffles steps down
CTM confirmed that Ruffles will be stepping down due to a personal health issue, effective immediately.
Qatar Airways crowned World’s Best MICE Airline at World MICE Awards
You could say Qatar Airways really 'nabbed the cheese' with this one! Alright, we'll see ourselves out...
Qantas, Jetstar & Virgin hike airfares as supplier costs inflate
Supplier increases means you'll pay more. It's like pass the parcel, but instead of getting a present, you owe money.
NSW Central Coast wins global sustainability award for promoting ecotourism at ITB
NSW Central Coast jumped the gun on St. Patricks Day and got the green celebrations going early!
PHOTOS: RuPaul’s Drag Race stars hit Kings Canyon for Priscilla’s 30th anniversary
The stars have renamed the iconic spot 'Queens Canyon'. No name change to the adjacent 'Priscilla's Crack', however.
Air NZ to suspend Auckland-Chicago route amid aircraft troubles
Sorry Kiwis, your craving for authentic deep dish pizza will go unsatiated (or you could just fly with another airline).
Tasmanian Premier promises to build the world’s largest chocolate fountain if re-elected
If only sticky 6-year-old children could vote. Then the Tassie Premier would be guaranteed a victory!
The staggering amount invested in 2022/23 Australian tourism projects revealed!
Any guesses on how much it was? We'll give you a hint: It's between $1 and $9 trillion (hope this helps).
Marriott’s Bonvoy Lounge makes it a 5-peat at Formula 1 in Melbourne
If Formula 1 is so good, then why isn't there a Formula 2? Oh there is one... Never mind.
Virgin Australia posts $236m profit, but the outgoing CEO warns of turbulence ahead
Hrdlicka warns of tough times ahead, just after announcing she's leaving. We wonder if there could be a connection!
Ascott opens new 255 room property in Central Sydney
Bored of your bedroom and want 255 new ones to try? The new Ascott property is here to solve this very specific problem!
Work and play at the Radisson RED, Auckland
We aren't going to tell you what order to work and play in, just that you should be looking to do both at Radisson Red.
Swiftonomics 101: Just how much did fans spend travelling to see Taylor Swift?
Thought you'd heard the last of Swift, huh? Not in your Wildest Dreams could Swiftomania go out of Style!
Rex posts a $13.3m turnaround for 1H24, but still at a loss
Rex is slowly making its way back to pre-pandemic form. Much like us with our sporadic attempts at exercise.