Corporations is one thing but hedge funds is an entirely different thing. Selling Virigin Australia to a hedge fund was as unimaginative a move as it could possibly be. The hedge funds will end up owning the entire world. And only the 1% will in the long run be able to afford to fly. This is the new normality.
AMEN TO THAT. Delta for example made 4.8billion in profit in 2019. If they saved that money they would be able to offset their 2020 losses. Just like any normal human you save for a rainy day. Hate we tax payer are forced to bail out these cooperations yet we dont get to enjoy their profits.
What miffs me off, is that this multibillion dollar businesses can get government help just like that, but the poorest people in our country are blamed and are told "well you should have had some money aside"
The airline industry employs tens of thousands of people in Australia alone, so financial assistance is warranted. Example: Qantas has just made 6000 people redundant, and furloughed another 15000. We also rely on airlines to move people and cargo around the world. That is why they need government assistance.
The value that the "poorest" people provide Australia compared to Virgin and Qantas is minuscule. You want these companies to suffer? Fine. But the rest of Australia, especially the mining industry, will suffer right alongside it.
How did Rex, a foreign owned airline, receive more government assistance than Qantas and Virgin combined. How did Rex go from claiming to be on the verge of collapse at the start of the pandemic, to announcing plans to expand several weeks later.
@Philip Gibbs Majority owned out of Singapore - from wiki - "A group of Singaporean investors and a collection of Australian private investors purchased the Hazelton and Kendell businesses, which were profitable entities before they were taken over by Ansett. The investors formed Australiawide Airlines, which was officially incorporated on 12 February 2002. The assets of the two airlines were purchased by Australiawide and merged to form the airline Regional Express, known as Rex. In 2005 Australiawide offered a percentage of the owners' shares (35 million out of 115 million shares, or 30.43%) to the public in a float."
If the virus doesn't get to them and make them STOP, their pollution will turn Australia the one big searing desert devoid of life. Cease fundiing any of these monstrosity airlines.
As good as this documentary is, I would love to see someone under the age of 50 speak. Don't just focus on the industry and economic pressure, what about the 20-30 year old front line workers such as pilot and flight attendants.
Sorry, but these big companies expecting to be bailed out during rainy days are crazy. No companies should be too big too fail. It's a free market. Enough with these big companies privatising gains but socialising losses. Tax money should bail out the people not Virgin Australia and its shareholders.
@Derek Nippl-e The aviation industry, as with any company should be saving their profits for a rainy day. The fact that Virgin has not been profitable in the whole last 10 years means they don't deserve to exist.
@Derek Nippl-e but maybe helped it spread globally, crowding people together in relatively small spaces. I agree with R R, they're quick to maximise the profit, but when it gets a bit rocky, also quick to demand assistance from the public purse. Stuff 'em
sorry but can't compare. not only are they hugely important for the countries infrastructure but its a mega employer and tens of thousands who aren't directly employed are dependant on them.
Ogs r they might have lots of jobs however they are owned by foreign companies which in turn funnel profits overseas leaving next to nothing in there coffers. Australian govt made the right decision.
All business practically affected losing million of million jobs worldwide. No more luxurious life probably over the next 5 years only survival this time.
They all had the chance to save income for bad times .... they did not, they spend it on bonuses to their manager and shareholders. Get it back or chapter 7.
If you read the facts, you'll find out how stupid your comment was. Management all took pay cuts, with the CEO earning no wage and the shareholder haven't been paid dividends in years
Norbert Rosendahl what’s wrong with you. Are you trying to say companies should become selfish and not reward their employees? If that happens people like you would write we are labour slaves without any reward.
They can't blame Qantas for trying to cut off Virgin from government funding. If you have two airlines and one of them is in the red digits, of course, it's smart to wipe out the competition although a monopoly is not favorable. Eventually, a new player will enter the game which will take over that part of the market and rival Qantas. It's not fair to pay out dividends when the times are good but expect government help when the times are bad. If the foreign shareholders don't have the money to save Virgin, the Airline needs to meet its fate. That's business. Governments are not here to bail out billion-dollar companies.
The fact Airlines and Football companies were crying poor a week or so into this lock down shows a failed business model. Where is your money? Where does it go? This is also why high speed rail needs to be built in Australia. We can no longer rely on just planes for travel between our major cities and the planes should not be a monopoly service. I for one would use the train from Brisbane to Melbourne over flying if its anything like the trip i had in Japan.
Once hiring begins again for pilots, there will still be a pilot shortage because of the retiring pilots or pilots who moved, so there is still demand. This should not discourage you since hiring spree will begin for pilots in the next few years or so.
Imran Qureshi this is what I’ve heard speaking to a base captain of a major legacy airline in Europe. COVID has actually created a HUGE catalyst for the shifting out of near to retirement pilots so when demand picks back up ( and it will quickly) there’s going to be massive vertical movement as the legacy airlines in particular are all about seniority and there have been senior FOs waiting years to get their 4 stripes who now will have the chance. This translates all the way down
@@geebix It not only stinks, but it is deadly toxic. I have obtained a NASA analysis of jet exhaust, and it is extremely poisonous. There are two full pages of two columns each listing the compounds in a contrail. There seven known carcinogens and lots of highly reactive nano-particulated aluminum which is an additive to Jet A to enhance combustion. The oxygen component is burned, but the aluminum is exhausted to the atmosphere. The industry tells us the exhaust is composed of CO2 and water vapour. This is a complete fabrication. There is no clean, respirable CO2 in a contrail. It is all a homogenized mixture of toxins, many unknown as to their health effects.
My fathers travel business Orbit Travel in Sydney Centre started up in the the 50s The day before the internet when customer service was key to success. He specialized in around the world trips, he booked the flying boats who landed in rose bay before kingsford smith airport. The days when travelling was elegant. Those days are dead. Commercial travel isn't what it was in the early days of pressurized planes. Travelling by ship pre commercial planes was such an elegant way to travel when deadlines were not an issue.
Now it’s just about money,money,money fast efficient ways and almost zero customer service...welcome to 2020...can’t wait till we start teleporting to our destination..hurry up tech.entrepreneurs we need light travel already...this is your time to shine...these airlines had it coming.
That lady representing the Unions is going to have a rude awakening if she expects Bain Capital to hire everybody back or even to worry about jobs . Bains going to do what they do best : sell off the parts and walk with a huge profit . I don't think Union jobs are even in their vocabulary.
I lived in Australia from 1999 to 2005. I flew on one of the first Virgin Blue flights from Melbourne to Sydney. Competition is critical. Without it people have no choice; they get what the government or a monopoly operator dishes up. This is an excellent review of the current airline situation in Australia. I hope that out of the other side of COVID-19 Australia will have two viable airlines. And I hope I will be able to return to one of the best places that I worked and lived in the not too distant future.
The airline industry, as a whole, should now recognize that business travelers actually do not need them. Corporations, governments, et al - worldwide are functioning favorably without air travel during this pandemic. Grounding 95% of all air travel globally since March 2020...and the majority of businesses around the world continues to thrive. A major pivot in the commercial airline industry focusing on tourist travel is the only real measure that will save them. People will not return to air travel, post COVID-19, without significant and tangible incentives.
Spot on! If I can work remotely as a teacher, there is no reason for an E-3 in the Navy to fly across the country to attend "quality" training, it can be done online!
They recognized it a long time ago. If you flew for business in the 90s and early 00s you'd see an entirely different product than you've seen in the past 10 years. Frequent Flyer programs are almost useless, smaller seats, etc, etc. Southwest came in and changed the entire game. Problem is there aren't many Herb Kellerher's out there. Not to mention, I would think tourism has to be a huge part of Australia's economy.
Douglas Buck or was this done by design to create another niche industry because they knew what was coming not only because of a financial economic tsunami, but they wanted to force online industry. Because they knew infrastructure spending was hugely expensive and by pushing this new online world, it would massively cut on those expenses. I never had a problem with it. But I have a problem when we heavily rely one way or the other.
Grasshopper, I was there too as a business traveler during those times. I certainly recognize all of the take-a-aways that appear almost annually now. Remember when you could easily walk in the isles pass the food/beverage carts? You simply can’t do that today... on any carrier. Perhaps, this was implemented as a necessary security impediment, if so - I agree with that. Without question, the future of air travel is heading for a long period of unimaginable tough times.
The longer that airlines are restricted in opening up again like pre Covid times the more damage it will do to the industry. Requesting assistance can only go so far.
You don't seem to understand. The airline business is a gross liability to the survival of our society. As such I should be severely limited to emergency only operations and replace for most of its functions by other means.
Seriously? You do know that almost any airlines companies in the world take major financial losses year after year right? All airline companies especially domestic state owned or subsidized ones expect full bailout by their government a.k.a. money from tax payers even after incurring losses year after year. if anything, airlines companies are actually an extremely costly regression to humanity progress as a race that those much needed funds that can be invested into other sectors instead.
It’s a sure thing that qantas wants to be a monopoly airline in oz. If it had of been qantas in this situation the government would have bailed them out. The CEO of qantas should not be so arrogant
I'm of the opinion he makes a good point... The government can't pick and choose who gets a Bail out... They provided a fund for all the airlines... Unfortunately Virgin needed a whole lot more than was on offer, as a consequence of their debt pile caused by the expansion policy of the CEO.
Reduce airport taxes, landing fees and expected profit margins and flight costs. If I could fly anywhere in this country very cheaply I would fly more. Imagine being able to fly from Perth to Brisbane for $150 one way imagine how many people would do it because they could. You wouldn’t have enough planes to fit the people in. Sometimes a smaller profit can be greater just by volume. It has always be inhibitive in this country to regularly travel by air
@@vazdogs7910 They run on Jet A fuel. Mostly highly toxic kerosene, some gasoline, some sulphur, aluminum oxide, and nine other additives. Military jets use an oilier JP 8.
What the REX CEO said about video conference is probably correct. Pre-COVID, I might have had about 3 Webex meetings a week. Now I get that 3 times a bloody day! Managers are starting to realise that they don't need to fly across from Perth to Moranbah QLD to catch up with us; just sched in a video meeting and taa daa! But it's a pain in the backside.
It's very true; but its quite surprising though that it takes something like COVID for them to realise it. Something like Skype has been around for years now and the product has always been fantastic.
Maybe not all but fat chance of a truck getting product from overseas. And aviation supports the road freight network by bringing them the goods a certain distance for them to haul it the remainder of the journey
As long as they keep uploading on TH-cam , i'll be happening without an account.. further fueled by the low quality resolution ABC has on iview.. 1080p all the way :)
I'm just a domestic customer myself and I think it is absolutly BS that the government didn't help out Virgin Airlines!!! Since Virgin have been in Australia they have Always offered better service and a much more enjoyable flying experience!! The loss of Virgin Airlines is going to be felt across so many industries here in Australia!!!
John Sharpe is a smart cookie and a shrewd businessman - Used his political connections to get Rex further ahead. No doubt in my mind. Don't hate the player, hate the game.
22 people on a 180 seat aircraft for proper social distancing - Just shows you how packed in we were. 60cm wide seats are a joke! The lack of leg room too!
How many went back to China? Rich Chinese can stay longer maybe for good anywhere. In the US if you have half a million dollars you can have a Green Card. So much for this B S immigration law. Everybody has a price.
People seem to think that Virgin and Qantas are equivalent operations, but they aren't. Virgin is a debt laden company that was always on the brink of collapse. For a government to take a stake in that company would be investing in a shit company, which isn't good for anyone. Let a healthy competitor come into the market and take some of Qantas' share. That could even be a government owned operation built on business fundamentals, not debt and uninterrupted cash flow
why would you bail out a company that is 90% foreign owned . i do however think its high time the government bails out australian small business which is the backbone of this nation . but we can see the way its going in the world , fewer of everything , do away with smaller companies, so the biggest companies will thrive with less competition . fewer players so rich will get richer .
I believe that is the plan, big multinational companies, interconnected like a giant team or cartel of companies, looking after each other. The computers have done the numbers, there will not be enough to go around, so the masses will have less and less, while the rich will live an exclusive life style. I for one will be excluded.
I have no comments on the content here - mainly because I'm not Australian and hence probably it isn't my place to anyway. Just here to say that I liked the format of this program - interviewing relevant people directly, getting their calm & clear responses to decisions / comments that affect them, and such. At least it feels like they want to show a well-rounded picture of how things are - instead of just shamelessly pushing an idea.
Virgin never served rural Australia. I've been to scores of large rural towns all over Australia and I've never seen them serviced by Virgin. There is no Virgin equivalent of QantasLink. Their "support" only extends to larger cities where they thought they could make high profits, but their mismanagement couldn't even make that model work.
Virgin flew to Tamworth, Albury, Coffs Harbour, Port Macquarie, Ballina, Bundaberg, Rockhampton, Mackay, Proserpine, Emerald, Gladstone, Hervey Bay, Mount Isa, Cloncurry, Port Hedland, Newman, Onslow, Kununurra, Kalgoorlie, Karratha, the Cocos Islands, Christmas Island, Broome, Alice Springs and Mildura. I'd say that's a fairly extensive regional network for a 2nd airline to have.
Ffs. Just bring it back to basics. We don’t need all the marketing and shit. Aussies go for the best price or in most cases, the brand that gets them to where they are actually flying
Did Virgin paid taxes in Australia ? No, so no bailout ! Takeover payroll of employees living in Australia and instead of bailout paid for their education to move into different career path.
I'm afraid I have little sympathy for airlines. They treated their customers horribly. Overbooking flights. Charging for luggage, food and every other thing. Making seats smaller and smaller so they are torturous. Making flights non changeable by customers but allowing themselves to reschedule and delay as they want without penalty. Endless scams on bundled booking with hotels and car rentals where the third party wont honor the price bookings and the airlines claim it's not their problem.
I never in my life was comfortable with the idea of going to places filled with lots of people /strangers and always avoided to travel by means of transport used by multiple people ! That's why I have invested my earnings in my house boat , ATV and a 5th wheeler parked upon the long bed 4 *4 custom truck since it more comfortable and easy to carry the 5th wheel as per the demand anywhere and also the truck can be used for multiple purposes after safely releasing and parking the 5th wheel ! I also have a pilot license for flying any light aircraft but it was primarily obtained to enable me to fly my PARA MOTOR !
Dang those employees were chanting "we are the champions during the last flight of the airline" jeez, certainly the song means something else for some Aussies.
This video is a fairly accurate picture of what airlines all over the world are facing. The global industry will shrink by a trillion AUS dollars per year, for the next two or three years. And there will be at least 3 to 5 national carriers that will either declare bankruptcy and merge with a competitor or permanently close. Both Boeing and Airbus along with turbine manufacturers are already seeing large orders being cancelled or delivery delay request for up to 3 years. There is a record glut of used aircraft for sale that will take 5 years to eliminate at steeply discounted prices. In turn, this week impact global financial markets with 2 to 3 trillion dollars in deprecated loan values that will tighten credit markets. That means up to 6 trillion AUS dollars over the next 3 years in lost global liquidity. Qantas might feel it can get through this crisis. But do not be surprised if it goes into voluntary bankruptcy itself to eliminate billions in debt like U.S. airlines did in the early 1990s.
I never thought I would agree with Joyce. The gamblers on the stock market leveraged the hell out of the airline and when it all fell to pieces they come to the government with their hat in their hand.
A very good investigation. This will probably be a school example in the years to come, when students of economics and politics will learn how to fix or not to fix the problem.
It’s obvious when a company this large that make a billion or billions a year they aren’t managing there money very well if they can’t sustain themselves for a couple months. All the C.E.Os and top guys spending hundreds of millions on themselves and there luxuries and mansions and lavish lifestyle every year but yet can’t sustain there company for a couple months then they obviously aren’t managing right and shouldnt be running the company. Small businesses I can understand but these billion dollar companies I don’t think have any excuse to ask for a bailout they should sell there mansions and luxuries to save there company.
sadly what this year has told me. That If I hate winter I have to leave my country, permanently to have even 1 day of relief from it. Gone are the days of working the summers in the Canadian oil patch and then wintering in the tropics. Only way it's gonna be warm in January is to move to the tropics and take root there as a permanent resident, or even as a new citizen. Canada's 1% have fully booked the 1%(1% of Canada that does not dive below -20C every winter)
Virgins domestic routes are worth far more than the company was when it went into administration. If it wasn't going to be saved, then a third party would have entered the market to compete against Qantas, because no Commonwealth Government, either Labor or Liberal, would sit back and let Qantas gouge Aussies on domestic travel routes. It would be political suicide to allow Qantas to tax Aussies everytime they took a flight and would delay any economic recovery from Covid.
Thinking about you and ourselves hear in Canada. Aviation is so important to Australia & Canada as we are both large countries with relatively small populations. We have big cities but also small remote communities that depend on airlines. Loss of airlines is terrible to contemplate for both our countries. Love to our commonwealth sibling.
Joyce doesn't come accross as a very nice person, appreciate he is doing what he must to ensure Qantas survives but a monopoly isn't good as we in the UK know with the possibility of only having BA which is not good.
Shareholders still have money, they just don’t want to take the money out of their pocket and pay the debt. They need Australian taxpayers money to pay that so that they can hold their pocket money back
The answer: find out which airlines were functioning during the last 4 months: invest in *them* they will be the Survivors (the *Chosens* if you want a dystopian term along with *Essentials* - Nurses for example, and *Necessaries* - Police.)
Some airlines failed after 911, including the Swiss flag carrier, which is just less than 20 years ago now. Was nothing learned that time? Surely current executives are old enough to remember that occasion. Going forward, airlines and other companies better be prepared. Travel and business can be interrupted by natural disasters, wars and worldwide economic calamities, let alone pandemics.
Watching those millionaire CEOs talking about the government taking money from ordinary people and giving it to them just makes me sick. In crisis it should be the other way around, government should take money from rich and give it to poor.
Why give government aid? Let the industry go down and build up again, I'd say. Some few airlines will make it, some others will be rebuild by investors. That brings back airtravel to the cost of those who want it and use it. Bailing companies out comes at the expanse of tax payers. So those who are rich and use airtravel the most can use it at taxpayers cost. Why would we want that?
Capitalist hate socialisum untill they need bailing out. In this case the investors where to mean to cough up the cash, thinking the the goverment would cave in, and the Australian goverment called their bluff. Thats what happens when you play the stock market, it's high risk and if you don't like it, don't invest.
Sounds quite similar to the house investors asking for direct or indirect handouts to the property and construction industries to preserve their property values and investments. It seems Australia has a bizzare idea that market risk isn't a thing.
I take your point, but this is not actually capitalists wanting socialism; because the state propping up businesses has always been part of capitalism. Provided the owner of the business can still claim the output of everyone's efforts towards production capacity their own 'capital' and are then allowed to claim the output of everyone's contribution towards surplus value as their own 'profit': it's still capitalism.
Whilst Virgin Australia (VA) operates in Australia, it is far from an Australian airline with 91 percent being foreign owned. Any of its five majority shareholders could have bailed VA out but NONE came to the rescue. Why? Because VA has posted seven consecutive annual losses costing hundreds of millions. VA is a financial liability. If it’s own investors wouldn’t bail out VA then why should the government?
I don't understand why the govts don't buy back airlines, communications and public transport. They should never have been sold off... they need to start running their own successful businesses to alleviate taxes...
and all the companies around that industry too like car rental, I have many friends and customers in the U.S from Atlanta to New York, they are all very worried to say the least
Every corporate should from now on keep aside certain portion of their cash flows (I mean cash profits) for unforeseen situations like this. Being practical is more important than being optimistic. Lesson learned hard way. It is "taking things for granted" approach that has compounded the financial problems across the world. The motto "First Save then Spend cautiously". If you don't do this, well, you will find yourself putting your hands wide and out. Like if you agree.
@@redwingsfan3621 No I would not, but please note recirculation is different to pressurisation. The air pressure comes from the primary compressor on the engine and is 'bled off' (aka bleed air) to the cabin. Airlines like to limit bleed air to save fuel and so recirculate the cabin air. The filtration system is pretty rudimentary and not capable of eliminating airborne infectious diseases.
Look it up the air is completely renewed every 3 minutes and filtered through HEPA filter, including of 99% of viruses. Look it up if you don't believe me, an airliner's air is probably the cleanest you'll breathe in regards to particles and virus
@@jayjays3592 You make my point for me. The air is 'renewed' not replaced. HEPA filters are not fine enough to filter many viruses .... and how often are they replaced anyway? For me, the airlines need to guarantee fresh air, not renewed air. It is for this reason that Boeing made such a fuss about it's new aircraft that used fresh, not bleed, air driven from electric fans with no, or at least very limited, recirculation.
UV C in filter boxes could help remove virus but would likely require redesign. Post Covid all ventilation systems aircraft, buses, trains, ships, buildings, even cars will need redesign to better assure 'healthy air'.
Alan Joyce hasn’t done that great for Qantas as previous CEO’s. Qantas has a pretty old fleet compared to most major airlines even virgin Australia has a younger fleet
That's true, but by luck it turned out he was right to delay getting new planes. A lot of Virgin's massive debt was because they'd just bought lots of new planes to lower their operating costs - they would have eaten Qantas for breakfast over the next few years if the industry had kept growing strongly. Instead covid came at the wrong time of the product replacement cycle for Virgin.
Virgin was getting squeezed from both sides. Qantas at the top end and Jetstar from the bottom. Virgin had a choice 10 years ago. Fight jetstar at the bottom (cost leader) or take on Qantas for the premium business. It was going to lose either way. They brought in JB as he knew the qantas business inside out. The Qantas group will always command 70% market share. No one has a chance is qantas has a captive market.
Same thing happened here in Iceland. No support for the competition. The flag carrier Icelandair had dominated the market here until a low cost airline was established in dec 2002 named Icelandexpress. For the first time families with little money between there hand´s after paying there bills could travel to other country´s. In 2011 the company was bought by Skúli Mogensen and then the competition really started. Fast growth, wide haul planes and the attempt to become a hybrid low cost and business class, the last years, caused the problems that led the company to bankruptcy. They got rid of the A330´s and the ceo and founder Skúli Mogensen claimed that they had stop loosing money and were back to the basic strategy that was so good for the company. But they needed support from government. But no I don´t know how many time the taxpayers of Iceland have had to bail out Icelandair. And they about to do it again in few months. These almost 2 decades we had competition, living here on this rock in the north Atlantic was a whole different life. The world opened up for the general public. Now we see prices to more than 50% higher and in summertime when we get airlines like Transavia Wissair and others the price drops back down, sometimes up to 70% We are only 350.000. We need the competition. So Australia most definitely needs it for sure. Be save
Virgin have always been flying close to the wind financially. Instead of learning from the mistakes of the global financial crisis and SARs, they strayed from what was working and expanded with multiple aircraft types. Long term financial stability with slow growth is not always an attractive option to Board Members who will potentially retire before seeing their investment blossom.
long is right... Wouldn't be the first time..,. Australia has a pretty good history of not bouncing back, and slow to react... Hate to be the bad boy, but why stop now..
Usually all the multi million-dollar corporate business is announcing they profit almost every year as it goes to Qantas , They announced they profit in Millions of dollars, not to mention Billions in profit every year and yet they can get government assistant . you tell me how it works ! It is absolutely a puzzle for me personally and I'm sure it is for millions of Aussie families.
![ILLSLICK - KILLSHOT REMIX [FULL VERSION]](http://i.ytimg.com/vi/RIK8RrqIAzE/mqdefault.jpg)
Corporations everywhere have an undeniable business plan: corporatize the profits and socialize their loses.
Corporations is one thing but hedge funds is an entirely different thing. Selling Virigin Australia to a hedge fund was as unimaginative a move as it could possibly be. The hedge funds will end up owning the entire world. And only the 1% will in the long run be able to afford to fly. This is the new normality.
Well said Bruce. Spot on.
AMEN TO THAT. Delta for example made 4.8billion in profit in 2019. If they saved that money they would be able to offset their 2020 losses. Just like any normal human you save for a rainy day. Hate we tax payer are forced to bail out these cooperations yet we dont get to enjoy their profits.
What miffs me off, is that this multibillion dollar businesses can get government help just like that, but the poorest people in our country are blamed and are told "well you should have had some money aside"
Welcome to neoliberalism.
The airline industry employs tens of thousands of people in Australia alone, so financial assistance is warranted. Example: Qantas has just made 6000 people redundant, and furloughed another 15000. We also rely on airlines to move people and cargo around the world. That is why they need government assistance.
The value that the "poorest" people provide Australia compared to Virgin and Qantas is minuscule.
You want these companies to suffer? Fine. But the rest of Australia, especially the mining industry, will suffer right alongside it.
That’s the idea mate end local business so we rely on corporate wankers
And by locking down the country? Who provides the food chain. And still I hear ya say close borders we’re fine?? Give it a month
How did Rex, a foreign owned airline, receive more government assistance than Qantas and Virgin combined. How did Rex go from claiming to be on the verge of collapse at the start of the pandemic, to announcing plans to expand several weeks later.
Does Rex fly FIFOs to the mining and gas camps?
Ex National Party treasurer pulls clout.
omniversling not in the West , Rex only fly to a few smaller regional towns .
@Philip Gibbs Majority owned out of Singapore - from wiki - "A group of Singaporean investors and a collection of Australian private investors purchased the Hazelton and Kendell businesses, which were profitable entities before they were taken over by Ansett. The investors formed Australiawide Airlines, which was officially incorporated on 12 February 2002. The assets of the two airlines were purchased by Australiawide and merged to form the airline Regional Express, known as Rex. In 2005 Australiawide offered a percentage of the owners' shares (35 million out of 115 million shares, or 30.43%) to the public in a float."
If the virus doesn't get to them and make them STOP, their pollution will turn Australia the one big searing desert devoid of life. Cease fundiing any of these monstrosity airlines.
As good as this documentary is, I would love to see someone under the age of 50 speak. Don't just focus on the industry and economic pressure, what about the 20-30 year old front line workers such as pilot and flight attendants.
I’m 64, but as a Rock’n Roll musician, i forget my age. I missed the spread of age, as Well. Great point mate.
Sorry, but these big companies expecting to be bailed out during rainy days are crazy. No companies should be too big too fail. It's a free market. Enough with these big companies privatising gains but socialising losses. Tax money should bail out the people not Virgin Australia and its shareholders.
@Derek Nippl-e The aviation industry, as with any company should be saving their profits for a rainy day. The fact that Virgin has not been profitable in the whole last 10 years means they don't deserve to exist.
@Derek Nippl-e but maybe helped it spread globally, crowding people together in relatively small spaces.
I agree with R R, they're quick to maximise the profit, but when it gets a bit rocky, also quick to demand assistance from the public purse.
Stuff 'em
R R - you won't need to fly domestically anytime soon then ?
@@jessedanielryder Virgin or Virgin Australia?
@Derek Nippl-e It brought it to the world stage nipple
The little faces on the engine covers got me 0:18
My business failed during this, my fault, no safety net for me. None of them should get bail outs.
Bas***ds . So many hotels closing too ... during this covid nonsense COVID 1984 See Eric Dubay
Hard to not save jobs for mega employers though, unless there's a safety net like a universal basic income.
sorry but can't compare. not only are they hugely important for the countries infrastructure but its a mega employer and tens of thousands who aren't directly employed are dependant on them.
Ogs r they might have lots of jobs however they are owned by foreign companies which in turn funnel profits overseas leaving next to nothing in there coffers. Australian govt made the right decision.
All business practically affected losing million of million jobs worldwide. No more luxurious life probably over the next 5 years only survival this time.
They all had the chance to save income for bad times .... they did not, they spend it on bonuses to their manager and shareholders.
Get it back or chapter 7.
They always do
you dont just save 4 billion lol
If you read the facts, you'll find out how stupid your comment was. Management all took pay cuts, with the CEO earning no wage and the shareholder haven't been paid dividends in years
Norbert Rosendahl what’s wrong with you. Are you trying to say companies should become selfish and not reward their employees? If that happens people like you would write we are labour slaves without any reward.
👍
Not once did they mention sir Richard Branson, as he was tucked away on his private island lol
He doesn’t own much of virgin Australia
@@soapiesoap5649 correct, about 10%
They can't blame Qantas for trying to cut off Virgin from government funding. If you have two airlines and one of them is in the red digits, of course, it's smart to wipe out the competition although a monopoly is not favorable. Eventually, a new player will enter the game which will take over that part of the market and rival Qantas.
It's not fair to pay out dividends when the times are good but expect government help when the times are bad. If the foreign shareholders don't have the money to save Virgin, the Airline needs to meet its fate. That's business. Governments are not here to bail out billion-dollar companies.
Unless you’re an airline who is mates with the transport minister ;)
The fact Airlines and Football companies were crying poor a week or so into this lock down shows a failed business model. Where is your money? Where does it go?
This is also why high speed rail needs to be built in Australia. We can no longer rely on just planes for travel between our major cities and the planes should not be a monopoly service.
I for one would use the train from Brisbane to Melbourne over flying if its anything like the trip i had in Japan.
What about boat travel and you must have connecting rivers in some areas?
Maybe what we need is a system which enforces a cash reserve requirement of some kind, for large companies.
well John Howard decided that train money was better used to connect Darwin and Alicesprings for coal mining.
I would much prefer a train - Flying is a pain in the ass
lol we'll never be as connected as Japan or have anywhere near its infrustructure
we went from a pilot shortage to this
Once hiring begins again for pilots, there will still be a pilot shortage because of the retiring pilots or pilots who moved, so there is still demand. This should not discourage you since hiring spree will begin for pilots in the next few years or so.
Imran Qureshi this is what I’ve heard speaking to a base captain of a major legacy airline in Europe. COVID has actually created a HUGE catalyst for the shifting out of near to retirement pilots so when demand picks back up ( and it will quickly) there’s going to be massive vertical movement as the legacy airlines in particular are all about seniority and there have been senior FOs waiting years to get their 4 stripes who now will have the chance. This translates all the way down
1:45. It’s Jet A, not Av Gas. Av Gas is used in piston aircraft, not turbine.
Turbines burn bloody paraffin, its stinks
@@geebix It not only stinks, but it is deadly toxic. I have obtained a NASA analysis of jet exhaust, and it is extremely poisonous. There are two full pages of two columns each listing the compounds in a contrail. There seven known carcinogens and lots of highly reactive nano-particulated aluminum which is an additive to Jet A to enhance combustion. The oxygen component is burned, but the aluminum is exhausted to the atmosphere. The industry tells us the exhaust is composed of CO2 and water vapour. This is a complete fabrication. There is no clean, respirable CO2 in a contrail. It is all a homogenized mixture of toxins, many unknown as to their health effects.
was hoping someone else got annoyed at the lack of research into what fuel a jet burns - lazy journalism!
Good pick up.
My fathers travel business Orbit Travel in Sydney Centre started up in the the 50s The day before the internet when customer service was key to success. He specialized in around the world trips, he booked the flying boats who landed in rose bay before kingsford smith airport. The days when travelling was elegant. Those days are dead. Commercial travel isn't what it was in the early days of pressurized planes.
Travelling by ship pre commercial planes was such an elegant way to travel when deadlines were not an issue.
Now it’s just about money,money,money fast efficient ways and almost zero customer service...welcome to 2020...can’t wait till we start teleporting to our destination..hurry up tech.entrepreneurs we need light travel already...this is your time to shine...these airlines had it coming.
@@Username-ze1ux Yup! Airlines love to treat us like herded cattle, even the non-budget airlines, and they wonder why people hate them and travelling!
That lady representing the Unions is going to have a rude awakening if she expects Bain Capital to hire everybody back or even to worry about jobs . Bains going to do what they do best : sell off the parts and walk with a huge profit . I don't think Union jobs are even in their vocabulary.
Exactly this. She's either not very astute or in denial.
I lived in Australia from 1999 to 2005. I flew on one of the first Virgin Blue flights from Melbourne to Sydney.
Competition is critical. Without it people have no choice; they get what the government or a monopoly operator dishes up.
This is an excellent review of the current airline situation in Australia. I hope that out of the other side of COVID-19 Australia will have two viable airlines. And I hope I will be able to return to one of the best places that I worked and lived in the not too distant future.
Well said
privatize the profits, socialize the losses
"There's nothing like the smell of AVGAS" that's petrol, you can smell Jet A1 or refined kerosene at a major airport..
Get use to the memories!
Yeah, he must be at a small general aviation airport...
...yes you can always smell it as you enter a plane it's a holiday aphrodisiac - they should bottle it 🤔
@@johnkean6852 Then we could spray in the family wagon to go on hollies, and pretend it's not the 'new abnormal'...
There’s nothing like the smell of napalm first thing in the morning, it smells like......... well, victory !
The airline industry, as a whole, should now recognize that business travelers actually do not need them. Corporations, governments, et al - worldwide are functioning favorably without air travel during this pandemic. Grounding 95% of all air travel globally since March 2020...and the majority of businesses around the world continues to thrive. A major pivot in the commercial airline industry focusing on tourist travel is the only real measure that will save them. People will not return to air travel, post COVID-19, without significant and tangible incentives.
Spot on! If I can work remotely as a teacher, there is no reason for an E-3 in the Navy to fly across the country to attend "quality" training, it can be done online!
Tourism and International students were holding everything together before this
They recognized it a long time ago. If you flew for business in the 90s and early 00s you'd see an entirely different product than you've seen in the past 10 years. Frequent Flyer programs are almost useless, smaller seats, etc, etc. Southwest came in and changed the entire game. Problem is there aren't many Herb Kellerher's out there. Not to mention, I would think tourism has to be a huge part of Australia's economy.
Douglas Buck or was this done by design to create another niche industry because they knew what was coming not only because of a financial economic tsunami, but they wanted to force online industry. Because they knew infrastructure spending was hugely expensive and by pushing this new online world, it would massively cut on those expenses. I never had a problem with it. But I have a problem when we heavily rely one way or the other.
Grasshopper, I was there too as a business traveler during those times. I certainly recognize all of the take-a-aways that appear almost annually now. Remember when you could easily walk in the isles pass the food/beverage carts? You simply can’t do that today... on any carrier. Perhaps, this was implemented as a necessary security impediment, if so - I agree with that. Without question, the future of air travel is heading for a long period of unimaginable tough times.
The longer that airlines are restricted in opening up again like pre Covid times the more damage it will do to the industry. Requesting assistance can only go so far.
You don't seem to understand. The airline business is a gross liability to the survival of our society. As such I should be severely limited to emergency only operations and replace for most of its functions by other means.
Seriously? You do know that almost any airlines companies in the world take major financial losses year after year right? All airline companies especially domestic state owned or subsidized ones expect full bailout by their government a.k.a. money from tax payers even after incurring losses year after year. if anything, airlines companies are actually an extremely costly regression to humanity progress as a race that those much needed funds that can be invested into other sectors instead.
It’s a sure thing that qantas wants to be a monopoly airline in oz. If it had of been qantas in this situation the government would have bailed them out. The CEO of qantas should not be so arrogant
Exactly - if they were the weaker company they would want that bailout.
of course the government would bail an aussie company out - qantas - why would they bail virgin out a foreign-owned company
Well.. The CEO for Qantas is not Australian! Guess thats where being arrogant is derived from. LOL.
I'm of the opinion he makes a good point... The government can't pick and choose who gets a Bail out... They provided a fund for all the airlines... Unfortunately Virgin needed a whole lot more than was on offer, as a consequence of their debt pile caused by the expansion policy of the CEO.
@@philcasey5931 and yet recently Joyce was asking for a bailout.
Reduce airport taxes, landing fees and expected profit margins and flight costs. If I could fly anywhere in this country very cheaply I would fly more. Imagine being able to fly from Perth to Brisbane for $150 one way imagine how many people would do it because they could. You wouldn’t have enough planes to fit the people in. Sometimes a smaller profit can be greater just by volume. It has always be inhibitive in this country to regularly travel by air
Everyone may like the smell of AVGAS but not a single plane in this video runs on it.
😂😂
Brilliant get am told!
What do they run on then?
@@vazdogs7910 They run on Jet A fuel. Mostly highly toxic kerosene, some gasoline, some sulphur, aluminum oxide, and nine other additives. Military jets use an oilier JP 8.
Vaz Dogs: Jet A1
What the REX CEO said about video conference is probably correct. Pre-COVID, I might have had about 3 Webex meetings a week. Now I get that 3 times a bloody day!
Managers are starting to realise that they don't need to fly across from Perth to Moranbah QLD to catch up with us; just sched in a video meeting and taa daa! But it's a pain in the backside.
I read that as 3 Weetbix 😆
@@alice5515 probably better for you!
It's very true; but its quite surprising though that it takes something like COVID for them to realise it. Something like Skype has been around for years now and the product has always been fantastic.
It’s the plot of every paperback novel we deemed far fetched.
I remember Ansett. Parents had lots of points, used them all up for a flight from Sydney to Sunshine Coast, Business class. Was so cool :)
38:30 Zoom, Teams, WebEx and Skype we'll be there biggest competition in the post coronavirus period. Very very true John Sharp
"aviation transports all of our goods" 4:56 (Paraphrased)
I know a few truckies that may take issue with that statement
Maybe not all but fat chance of a truck getting product from overseas. And aviation supports the road freight network by bringing them the goods a certain distance for them to haul it the remainder of the journey
Because oil, grain, cars, building materials, etc. are all flown in. Has mr. Byron ever heard of ships and trains?
Borgehtti was on the Qantas payroll.
Yes he was the Qantas Executive General Manager.
So he was double agent ? 🤣🤣🤣
Thank you, Four Corners, for your outstanding programming. Keep making it better and better. I would pay to subscribe.
As long as they keep uploading on TH-cam , i'll be happening without an account..
further fueled by the low quality resolution ABC has on iview.. 1080p all the way :)
I,m quite enjoying the much cleaner and much much quieter skies thanks very much
I'm just a domestic customer myself and I think it is absolutly BS that the government didn't help out Virgin Airlines!!! Since Virgin have been in Australia they have Always offered better service and a much more enjoyable flying experience!! The loss of Virgin Airlines is going to be felt across so many industries here in Australia!!!
"Virgin was extremely vulnerable." They usually are. They usually...are.
Not when they grow old as virgins.
We all enjoyed cheap air travel. It'll be a completely new world post Covid-19
Tickets prices will go high because of limitations of passengers numbers in the plain
John Sharpe is a smart cookie and a shrewd businessman - Used his political connections to get Rex further ahead. No doubt in my mind. Don't hate the player, hate the game.
22 people on a 180 seat aircraft for proper social distancing - Just shows you how packed in we were. 60cm wide seats are a joke! The lack of leg room too!
1.4 million Chinese tourists visited Australia 12 month from July 2018-June 2019.
How many went back to China? Rich Chinese can stay longer maybe for good anywhere. In the US if you have half a million dollars you can have a Green Card. So much for this B S immigration law. Everybody has a price.
Half of them CCP agents of subversion.
Suzy Wong from Hong Kong.
People seem to think that Virgin and Qantas are equivalent operations, but they aren't. Virgin is a debt laden company that was always on the brink of collapse. For a government to take a stake in that company would be investing in a shit company, which isn't good for anyone. Let a healthy competitor come into the market and take some of Qantas' share. That could even be a government owned operation built on business fundamentals, not debt and uninterrupted cash flow
We’ll move forward. Things will get better. No worries.
42:03 - domestically one of the more profitable marks in the world...ie; over priced!
Install the aviation flight tracking apps on your phones to see for yourself what planes are currently flying around the world.
Never stopped for megas, we're the problem: the great unwashed. ( See flight radar online during the last 4 months.)
Sounds interesting! Thanks 😊
why would you bail out a company that is 90% foreign owned . i do however think its high time the government bails out australian small business which is the backbone of this nation . but we can see the way its going in the world , fewer of everything , do away with smaller companies, so the biggest companies will thrive with less competition . fewer players so rich will get richer .
I believe that is the plan, big multinational companies, interconnected like a giant team or cartel of companies, looking after each other. The computers have done the numbers, there will not be enough to go around, so the masses will have less and less, while the rich will live an exclusive life style. I for one will be excluded.
Privatize profits, socialize losses.
Why do companies get welfare money?
I would like to know why blacks get it .
I have no comments on the content here - mainly because I'm not Australian and hence probably it isn't my place to anyway. Just here to say that I liked the format of this program - interviewing relevant people directly, getting their calm & clear responses to decisions / comments that affect them, and such. At least it feels like they want to show a well-rounded picture of how things are - instead of just shamelessly pushing an idea.
It was produced by our country's public broadcaster. No commercial conflict of interest.
Well, get yourself a gun and stop believing everything you hear! There is very little truth amidst all the noise and lies.
Virgin never served rural Australia. I've been to scores of large rural towns all over Australia and I've never seen them serviced by Virgin. There is no Virgin equivalent of QantasLink. Their "support" only extends to larger cities where they thought they could make high profits, but their mismanagement couldn't even make that model work.
Virgin flew to Tamworth, Albury, Coffs Harbour, Port Macquarie, Ballina, Bundaberg, Rockhampton, Mackay, Proserpine, Emerald, Gladstone, Hervey Bay, Mount Isa, Cloncurry, Port Hedland, Newman, Onslow, Kununurra, Kalgoorlie, Karratha, the Cocos Islands, Christmas Island, Broome, Alice Springs and Mildura. I'd say that's a fairly extensive regional network for a 2nd airline to have.
They: no one is travelling so no flights
Me: there’s no flights available so m not travelling
I'm watching this Video right now on COVID-19 concerning the Airline Industry plus is really some serious stuff Awesome Video.
Good report, thank you 4 Corners!
Ffs. Just bring it back to basics. We don’t need all the marketing and shit. Aussies go for the best price or in most cases, the brand that gets them to where they are actually flying
The marketing is there to tell aussies the best prices and brand though?
Look it up, stupid. Glossy advertising, paid for by YOU!
They have bought it back to basics. Stay home, no flights.
@@robbiehewitt5772 lol sure have
Qantas was on the brink of being dismembered 12 years ago. Only the GFC saved it !!!
Hopefully, there will be nomore unnecessary and very much polluting air travel! Also, this is not the last contagious disease.
Did Virgin paid taxes in Australia ? No, so no bailout ! Takeover payroll of employees living in Australia and instead of bailout paid for their education to move into different career path.
And after 12 minutes I think I have heard as much as I am going to hear.
It's been a fluff piece so far.
Why should the taxpayers give money to a private company to bail it out? That would open a huge Pandora's Box. Branson and Co have no shame.
My thoughts exactly. We should not be giving tax money to bail out private companies.
I'm afraid I have little sympathy for airlines. They treated their customers horribly. Overbooking flights. Charging for luggage, food and every other thing. Making seats smaller and smaller so they are torturous. Making flights non changeable by customers but allowing themselves to reschedule and delay as they want without penalty. Endless scams on bundled booking with hotels and car rentals where the third party wont honor the price bookings and the airlines claim it's not their problem.
But you wanted cheap airfares so.....
You get what you pay for...if you're unhappy, go business class
I never in my life was comfortable with the idea of going to places filled with lots of people /strangers and always avoided to travel by means of transport used by multiple people !
That's why I have invested my earnings in my house boat , ATV and a 5th wheeler parked upon the long bed 4 *4 custom truck since it more comfortable and easy to carry the 5th wheel as per the demand anywhere and also the truck can be used for multiple purposes after safely releasing and parking the 5th wheel !
I also have a pilot license for flying any light aircraft but it was primarily obtained to enable me to fly my PARA MOTOR !
Sounds awesome! I've always hated flying - I much prefer driving to places or catching a train. At least you have your own space on a train.
Dang those employees were chanting "we are the champions during the last flight of the airline" jeez, certainly the song means something else for some Aussies.
so... air planes grounded and runways empty .
can we go electric longboarding the 3 km runways ?
They are probably being used as plane parking bays.
Very creative
This video is a fairly accurate picture of what airlines all over the world are facing.
The global industry will shrink by a trillion AUS dollars per year, for the next two or three years.
And there will be at least 3 to 5 national carriers that will either declare bankruptcy and merge with a competitor or permanently close.
Both Boeing and Airbus along with turbine manufacturers are already seeing large orders being cancelled or delivery delay request for up to 3 years.
There is a record glut of used aircraft for sale that will take 5 years to eliminate at steeply discounted prices. In turn, this week impact global financial markets with 2 to 3 trillion dollars in deprecated loan values that will tighten credit markets.
That means up to 6 trillion AUS dollars over the next 3 years in lost global liquidity.
Qantas might feel it can get through this crisis. But do not be surprised if it goes into voluntary bankruptcy itself to eliminate billions in debt like U.S. airlines did in the early 1990s.
We don't smell as much Av-Gas these days as when, decades ago, our fleets flew on it -- but we've adapted -- and like the smell of Jet A1, as much.
Ikr.. Jet A and A1 are almost 100% kerosene.
I never thought I would agree with Joyce. The gamblers on the stock market leveraged the hell out of the airline and when it all fell to pieces they come to the government with their hat in their hand.
Please explain how gamblers on the stock market did this. Is the Virgin leadership the gambler in your comment?
Stuff the airline. Not taxpayers responsibility.
@@diddid194 Stock owners are the ones who fill the board.
A very good investigation. This will probably be a school example in the years to come, when students of economics and politics will learn how to fix or not to fix the problem.
It’s obvious when a company this large that make a billion or billions a year they aren’t managing there money very well if they can’t sustain themselves for a couple months. All the C.E.Os and top guys spending hundreds of millions on themselves and there luxuries and mansions and lavish lifestyle every year but yet can’t sustain there company for a couple months then they obviously aren’t managing right and shouldnt be running the company. Small businesses I can understand but these billion dollar companies I don’t think have any excuse to ask for a bailout they should sell there mansions and luxuries to save there company.
sadly what this year has told me. That If I hate winter I have to leave my country, permanently to have even 1 day of relief from it. Gone are the days of working the summers in the Canadian oil patch and then wintering in the tropics. Only way it's gonna be warm in January is to move to the tropics and take root there as a permanent resident, or even as a new citizen. Canada's 1% have fully booked the 1%(1% of Canada that does not dive below -20C every winter)
Pilots working as Bus driver, former sky princess turning up for a job in sydney's brothels. It just didnt had to be this way..
🤣😂😅👍 funny.
Good business?
AJ: "We're burning through $40 million a week."
Let's sell tickets at less than cost.
Virgins domestic routes are worth far more than the company was when it went into administration. If it wasn't going to be saved, then a third party would have entered the market to compete against Qantas, because no Commonwealth Government, either Labor or Liberal, would sit back and let Qantas gouge Aussies on domestic travel routes. It would be political suicide to allow Qantas to tax Aussies everytime they took a flight and would delay any economic recovery from Covid.
Thinking about you and ourselves hear in Canada. Aviation is so important to Australia & Canada as we are both large countries with relatively small populations. We have big cities but also small remote communities that depend on airlines. Loss of airlines is terrible to contemplate for both our countries. Love to our commonwealth sibling.
tell us that when we were stiffed with no fly zones, boarders closed to keep out covid, etc
With Virgin out, Australia will be out too, with a 50% loss in tourism; this effects hotel, car rental, tours, etc.
Arstralia needs that!
Domestic tourism can and should come back strongly. However, may not involve so much flying a lot of people will choose to drive.
Still not addressing the faulty aircraft(max8?) and how those disasters affected consumer confidence!
Only Virgin had ordered them and was yet to take delivery when the Max-8 was grounded.
Joyce doesn't come accross as a very nice person, appreciate he is doing what he must to ensure Qantas survives but a monopoly isn't good as we in the UK know with the possibility of only having BA which is not good.
He is a little weazel
Competition is good for the Consumer we are here +44 hoping for the best
@@IadoreyouMaxxy the biggest, little weasel I ever did see!
Shareholders still have money, they just don’t want to take the money out of their pocket and pay the debt. They need Australian taxpayers money to pay that so that they can hold their pocket money back
The shareprice is sitting at 3.78 it should be closer to 50 cents
The answer: find out which airlines were functioning during the last 4 months: invest in *them* they will be the Survivors (the *Chosens* if you want a dystopian term along with *Essentials* - Nurses for example, and *Necessaries* - Police.)
Some airlines failed after 911, including the Swiss flag carrier, which is just less than 20 years ago now. Was nothing learned that time? Surely current executives are old enough to remember that occasion. Going forward, airlines and other companies better be prepared. Travel and business can be interrupted by natural disasters, wars and worldwide economic calamities, let alone pandemics.
Watching those millionaire CEOs talking about the government taking money from ordinary people and giving it to them just makes me sick. In crisis it should be the other way around, government should take money from rich and give it to poor.
Virgin has the best service of any domestic carrier. Gonna miss them.
I prefer qantas for international flights but preferred virgin for domestic flights due to pricing and experience.
That won't be all you're going to miss! Life is changing dramatically.
Why give government aid? Let the industry go down and build up again, I'd say. Some few airlines will make it, some others will be rebuild by investors. That brings back airtravel to the cost of those who want it and use it.
Bailing companies out comes at the expanse of tax payers. So those who are rich and use airtravel the most can use it at taxpayers cost. Why would we want that?
@@deaddoll1361 As sars-cov-2 hit and stopped the world it was going to hurt
Totally agree, except apply that to housing as well
Capitalist hate socialisum untill they need bailing out. In this case the investors where to mean to cough up the cash, thinking the the goverment would cave in, and the Australian goverment called their bluff. Thats what happens when you play the stock market, it's high risk and if you don't like it, don't invest.
Sounds quite similar to the house investors asking for direct or indirect handouts to the property and construction industries to preserve their property values and investments.
It seems Australia has a bizzare idea that market risk isn't a thing.
I take your point, but this is not actually capitalists wanting socialism; because the state propping up businesses has always been part of capitalism. Provided the owner of the business can still claim the output of everyone's efforts towards production capacity their own 'capital' and are then allowed to claim the output of everyone's contribution towards surplus value as their own 'profit': it's still capitalism.
Whilst Virgin Australia (VA) operates in Australia, it is far from an Australian airline with 91 percent being foreign owned. Any of its five majority shareholders could have bailed VA out but NONE came to the rescue. Why? Because VA has posted seven consecutive annual losses costing hundreds of millions. VA is a financial liability. If it’s own investors wouldn’t bail out VA then why should the government?
Thank the dogs for bringing the money in. Keep smilin' My job is safe :)
Is it?
Restart costs will be prohibitive. Every plane that sat dormant will require thorough inspection/repair before going back into he air.
LIKE HOW MONEY CUT OFF TOP END OF AUSTRALIA COMPANY BOSS AND OTHERS ?
I have never seen so many stars
I don't understand why the govts don't buy back airlines, communications and public transport.
They should never have been sold off... they need to start running their own successful businesses to alleviate taxes...
and all the companies around that industry too like car rental, I have many friends and customers in the U.S from Atlanta to New York, they are all very worried to say the least
it will bounce back just needs time
Best way to lower CO2 emissions-pandemic
As soon as the travel ban is lifted I'm flying out of Australia! 99% of people I interact with say they will travel again next year
ill travel this year given the opportunity
What if there's a war with china ?
Absolutely, can't wait, the longer it goes on the more spending money I'll save
If the price is right, I'll definitely travel. They might treat us like humans, not cattle, for once.
Every corporate should from now on keep aside certain portion of their cash flows (I mean cash profits) for unforeseen situations like this. Being practical is more important than being optimistic. Lesson learned hard way. It is "taking things for granted" approach that has compounded the financial problems across the world. The motto "First Save then Spend cautiously". If you don't do this, well, you will find yourself putting your hands wide and out. Like if you agree.
For balance, please discuss the role airlines played in spreading C-19. Particularly recirculation / filtration of cabin air
Would you rather fly below 15,000 feet and take twice as long, pay twice as much (more fuel) and get tossed around in an unpressurized plane?
@@redwingsfan3621 No I would not, but please note recirculation is different to pressurisation. The air pressure comes from the primary compressor on the engine and is 'bled off' (aka bleed air) to the cabin. Airlines like to limit bleed air to save fuel and so recirculate the cabin air. The filtration system is pretty rudimentary and not capable of eliminating airborne infectious diseases.
Look it up the air is completely renewed every 3 minutes and filtered through HEPA filter, including of 99% of viruses. Look it up if you don't believe me, an airliner's air is probably the cleanest you'll breathe in regards to particles and virus
@@jayjays3592 You make my point for me. The air is 'renewed' not replaced. HEPA filters are not fine enough to filter many viruses .... and how often are they replaced anyway? For me, the airlines need to guarantee fresh air, not renewed air. It is for this reason that Boeing made such a fuss about it's new aircraft that used fresh, not bleed, air driven from electric fans with no, or at least very limited, recirculation.
UV C in filter boxes could help remove virus but would likely require redesign. Post Covid all ventilation systems aircraft, buses, trains, ships, buildings, even cars will need redesign to better assure 'healthy air'.
Alan Joyce hasn’t done that great for Qantas as previous CEO’s. Qantas has a pretty old fleet compared to most major airlines even virgin Australia has a younger fleet
That's true, but by luck it turned out he was right to delay getting new planes. A lot of Virgin's massive debt was because they'd just bought lots of new planes to lower their operating costs - they would have eaten Qantas for breakfast over the next few years if the industry had kept growing strongly. Instead covid came at the wrong time of the product replacement cycle for Virgin.
Virgin was getting squeezed from both sides. Qantas at the top end and Jetstar from the bottom. Virgin had a choice 10 years ago. Fight jetstar at the bottom (cost leader) or take on Qantas for the premium business. It was going to lose either way. They brought in JB as he knew the qantas business inside out. The Qantas group will always command 70% market share. No one has a chance is qantas has a captive market.
Same thing happened here in Iceland.
No support for the competition.
The flag carrier Icelandair had dominated the market here until a low cost airline was established in dec 2002 named Icelandexpress.
For the first time families with little money between there hand´s after paying there bills could travel to other country´s.
In 2011 the company was bought by Skúli Mogensen and then the competition really started.
Fast growth, wide haul planes and the attempt to become a hybrid low cost and business class, the last years, caused the problems that led the company to bankruptcy.
They got rid of the A330´s and the ceo and founder Skúli Mogensen claimed that they had stop loosing money and were back to the basic strategy that was so good for the company.
But they needed support from government.
But no
I don´t know how many time the taxpayers of Iceland have had to bail out Icelandair. And they about to do it again in few months.
These almost 2 decades we had competition, living here on this rock in the north Atlantic was a whole different life.
The world opened up for the general public.
Now we see prices to more than 50% higher and in summertime when we get airlines like Transavia Wissair and others the price drops back down, sometimes up to 70%
We are only 350.000. We need the competition.
So Australia most definitely needs it for sure.
Be save
The airline was called WoWair after new owner´s with Skúli Mogensen
The Airline industry in this Country will never get over this!
No cheap interstate or overseas holidays but it's good for the planet.
Where’s Tiger gone?
Holly Q TigerAir Australia was wholly owned by Virgin Australia
If these companies' finances have always been on a knife edge, what justified the generous dividends and huge salaries for the elite ?!
Too true. Let the grossly overpaid execs and sheltered shareholders take the strain. Start anew with these companies
Brisbane river looks so much better with 80% less ferries churning....🤘
Sharks might be able to see what they're actually biting, if ferries stay parked up!
Virgin have always been flying close to the wind financially. Instead of learning from the mistakes of the global financial crisis and SARs, they strayed from what was working and expanded with multiple aircraft types. Long term financial stability with slow growth is not always an attractive option to Board Members who will potentially retire before seeing their investment blossom.
The aviation industry went straight into the ground as fast as the 737-Max went into Ethiopian ground.
Lmao
This is amazing to think how long it will take for things to bounce back (what does anyway)
long is right... Wouldn't be the first time..,. Australia has a pretty good history of not bouncing back, and slow to react... Hate to be the bad boy, but why stop now..
Usually all the multi million-dollar corporate business is announcing they profit almost every year as it goes to Qantas ,
They announced they profit in Millions of dollars, not to mention Billions in profit every year and yet they can get government assistant .
you tell me how it works !
It is absolutely a puzzle for me personally and I'm sure it is for millions of Aussie families.
Thought it was about travel in genral not just virgin
They're not really good with the titling on this one. 👀