Not one of you have come up with any true facts about the VS current financial position
Here are some facts from a recent Bloomberg article:
"In total [Virgin Atlantic] lost more than $100 million during 2017 and 2018 — the two most recent years for which its accounts are available.
That’s one reason its balance sheet is weaker than its European peers. Lease-adjusted net debt was five times higher than a comparable measure of earnings, according to the latest group accounts (which includes the travel operator Virgin Holidays). Air France-KLM — by no means the strongest airline financially — has net debt of 1.5 times the same earnings measure.
While Virgin Atlantic had almost 500 million pounds of cash at the end of December 2018, much of that money came from customers paying for tickets long before they traveled. Its current liabilities far exceeded its current assets, which is a problem if customers start asking for their money back because they can’t fly."
That's the crux of the problem for government bailouts. They didn't bail out Flybe because there were no assets against which ot could secure its loans. Virgin is in the same position.
The staff volunteered to take 8 weeks unpaid leave, RB has put money in, what more do you want?
That's not entirely true. They were tolf to take 8 weeks unpaid (and they had 4 days to agree) otherwise teh airline would file for administration. They had no choice, certainly not voluntary!
This seems to be a little more than you here from other airlines, considering BA have furloughed 36000 staff witouth any option,
have IAG shareholders agreed to inject cash into there airlines, QR remain very quiet
Considering VS has 45 aircraft support, IAG has approx 550!
The agreement BA has with Unite union members is to use the government furlough scheme - employees will be paid 80% of their basic salary plus 80% of any allowances or shift pay usually due with no upper limit. So they're sitting at home for 2 months on 80% pay. That's significantly better than the Virgin deal.
IAG doesn't need any cash injections. I don't understand why people keep bringing IAG into this. Their cash position is strong - over €9bn in available liquidity. Costs have been slashed already and can continue in this state until they're virtually the last airline standing.
IAG must have lease costs, so who is going to burn through money quicker IAG or VS, 9 Billion wont go far!
Virgin, because they hardly any left. Lease costs make up a small proportion of overall costs - oil prices are dramatically lower but so is use, so already costs are down ~40% - employees on furlough reduces costs a further ~25% and non-essential capex has been stopped. Add to that some of BA's leases and possibly other IAG group airlines have pay-per-hour leases - so if they don't fly they pay very little. Virgin simply can't reduce costs or raise revenue so quickly nor do they have the same level of cash reserves.
I dont want any airline to fail, we are in unprecented times, most nations are suppporting industry so the UK Government should
do the same for all UK airlines.
The problem is the government can't prop up every failing business. They have a duty to taxpayers not to just waste money. They will only provide loans where there are assets to secure them against. Virgin has virtually nothing to secure loans against as they're already using every asset as collateral.
We need competition in the future, not consolidated majors dictating price!!!
After the collapse of Monarch, Thomas Cook and Flybe I think UK taxpayers are tired of having to pick up the pieces of over-supply and too much capacity i the market. Clearly lower prices are good for consumers, but not when they're so low you get continuous failures with people stranded downroute. Prices need to not only be low, but sustainable. If Virgin fail there will still be fierce competition to/from London.