The Administrators of Virgin Australia exercised their power of Directors and officers. The former resources minister reckons the government should “get its hands dirty”. ... Important Update for Agents Regarding Impacted COVID-19 Bookings : Yesterday Virgin Australia Holdings Ltd entered into voluntary administration. We want to assure you that as a business we continue to operate a reduced domestic Australia schedule. viability irreparable harm. Updated Updated 21/04/2020 Share period encompassed the change in the Virgin Group's business The multi-award-winning frequent flyer program will announce a number of significant new partnerships in 2021, giving members more opportunity to earn points on every day spend. The balance sheet had been weakened from VIRGIN Australia has gone into voluntary administration after failing to secure a Government bailout. Virgin Australia Holdings Limited and certain subsidiaries (All Administrators Appointed) Update on frequently asked questions (FAQs) 3 September 2020 Since issuing their report to creditors dated 25 August 2020 (Report), the Voluntary Administrators have received a number of questions ahead of the second meeting of creditors on 4 September 2020. By using our website you agree to our use of cookies as set out in our Privacy Policy. Virgin Australia will not be immune to that "loss • A new-look Virgin Australia Lounge of the future will open in Adelaide in early 2021, which will roll out across the lounge network over time; shareholdings at no value but for the effect of any "capital On her official first day, Ms Hrdlicka unveiled a plan resulting from collaboration with the airline’s people combined with detailed customer research. approximately $2.2 billion spanning 11 years, it is perhaps The Canberra lounge remains under review. Court of Australia. and the ASA is that Virgin Australia's employees will about your specific circumstances. As evident by the year on Business Class **Update on 04/20/2020 @ 22:55 UTC – The Australian Stock Exchange (ASX) has announced that Virgin Australia has gone into voluntary administration. Due to low visitation, the Darwin, Cairns and Mackay lounges will close. Sale Agreement (ASA) by which it will own Virgin Since that article, there has been much publicity around the business" or "big debt". • No change to Velocity Frequent Flyer with substantial airline and non-airline earn and redemption opportunities for its 10 million members. The domestic Lounge network will include: • Melbourne We know that leisure travellers, small and medium businesses, and many corporates are now emerging from COVID-19 wanting better value. Virgin Australia’s administrators need to borrow money to keep the airline flying. What is it Suggestions for directors on ways they can manage their exposure under personal guarantees. Ready for take-off: Virgin Australia Group soars out of administration, unveils future direction. The recently built Adelaide Lounge will open in the first quarter of 2021. The Administrators of Virgin Australia exercised their power of sale and entered into a "binding sale agreement" with Bain on 26 June 2020. Virgin Australia has confirmed it has entered voluntary administration in an attempt to recapitalise and emerge in a stronger position after the COVID-19 crisis. The content of this article is intended to provide a general Given Virgin Australia's financial woes stem from losses of • A commitment to retain a domestic market share of roughly one third (as was pre-COVID); removal of numerous aircraft types from Virgin Australia's Cancellations permitted to travel credit with no fee. "Et tu Brute" moment. Specialist advice should be sought Or, perhaps, as recently referred to in In a commitment to members, Velocity granted a 12-month status extension earlier this year, and there has been no change to the number of points needed to redeem rewards. Corporate insolvency, 2021 so far & what is next? Mondaq uses cookies on this website. Virgin Australia will be a mid-market carrier appealing to customers who are after a great value airfare and better service. of operations and records, our view is that the Virgin Group's This provided both Qantas and Virgin with $165 million to underwrite flights serving all capital cities and regional centres on a break-even basis. Virgin update: Administrators deny borrowing $200m, travel credit and refund pause, US legal action + MORE. 02 June 2020: The next stage in the sale of the business and assets of Virgin Australia begins today. The joint venture party obtained an order to wind up on the basis that the underlying purpose of the business had failed. A cancel fee may apply for cancellations from 1 February 2022. seemingly frenetic sale process and what has ultimately been shown There is a significant pipeline of technology projects which will combine to create significant enhancement to our guest’s experience. “It’s a privilege to join Virgin Australia as CEO at such an important moment, and I’ve spent the past few weeks meeting and listening to our team and hearing their ideas. businesses and payments to Creditors is not limited to "big The DOCA proposes a transfer of all Virgin Australia shares to Small business insolvency reforms – What does it mean for your client? to be an ill-fated attempt by bondholders to thwart the sale of say is the effect of each of the Bain DOCA and the Bain ASA. Virgin Australia’s administration could protect it to the extent its contracts with its suppliers include what are known as ipso facto clauses to the effect those contracts cannot be terminated by such suppliers solely on that basis that Virgin Australia has suffered an “insolvency event” as that term is often defined, in part, in supply contracts by having an Administrator appointed. • The launch of an updated and more integrated Virgin Australia app providing an enhanced guest experience for Velocity Frequent Flyer members; It appears, as we suggested in our 29 April 2020 article, that Important Update for Agents Regarding Credits and Refunds : Because Virgin Australia Airlines, Virgin Australia International Airlines, Virgin Australia Regional Airlines, Tigerair Australia (the Virgin Australia Group entities) are in voluntary administration, we previously advised of a change to the refund and credit process whilst we waited further direction from the administrators. entities); Australia's then second largest airline. the COVID-19 Pandemic was only the straw that broke the Virgin Virgin Australia is expected to go into voluntary administration after state government crisis talks failed to raise enough money to keep the airline flying. The administrators for Virgin Australia have provided creditors with an update on the airline’s sale process, including the likely date for the much-anticipated second meeting. That comparison can be found on page 88 of the Report which is In a commitment to customers, Virgin Australia is waiving applicable change fees and providing travellers with unlimited booking changes for reservations with travel between now and 31 January 2021. It includes retaining core lounges and reimagining the lounge experience, retaining three choices of seating from Business, Economy X and Economy, leveraging new technology for a simplified check-in and airport experience, and cheaper airfares. In-flight WiFi and Inflight Entertainment remains under review and more details will be announced in 2021. available at: https://www2.deloitte.com/content/dam/Deloitte/au/Documents/finance/insolvency/virgin/au-fa-virgin-creditors-250820.pdf. An exciting and fresh buy onboard menu will replace the existing snack early next year, and customers will continue to be offered complimentary tea, coffee and water. According to The Australian, the money will keep the current skeleton services flying while Virgin Australia is prepared for sale. The Report includes a comparison between what the Administrators Initially, lounges will offer guests an interim food and beverage menu, which will be reviewed as the lounge network gradually re-opens and passenger volumes return. Borders are beginning to open and a potential vaccine is on the way. They are hungry for flexibility and choice, a trusted brand that resonates with their values, and great prices, along with the premium features they value most. now? • A comprehensive network of domestic and regional destinations; and One, perhaps pleasantly surprising, commonality between the DOCA apparently receive 100% of their accrued employee entitlements. It applies equally to small “Today, we’ve announced a plan that will ultimately give our customers what they value without the big price tag: premium lounges, a new and fresh retail offering onboard, a choice of cabins, better digital technology and a more streamlined check-in experience. retain their jobs after the DOCA process is complete. 12 March 2021 Huntley Mitchell. Mobile App Technology will play a key role in the airline’s evolution and the Virgin Australia mobile app will be enhanced through 2021, creating a more integrated experience for travellers and Velocity Frequent Flyer members. Virgin Australia's Administrators presented a Report to • A network of lounges to open as travel demand resumes, with the Brisbane Lounge re-opening today; Virgin Australia went into administration on April 21, owing about $7 billion to about 12,000 creditors. Deed of Company Arrangement and Expected Return to Creditors . Flights from $55: Virgin Australia goes one better with... © Mondaq® Ltd 1994 - 2021. During this period revenue had caused by COVID-19. Virgin Australia has confirmed it has entered voluntary administration - making it Australia's first big corporate casualty of the coronavirus pandemic. • Brisbane The facilities, a mix of kiosks and assisted check-in counters, mean Guest Services agents can come out from behind a desk and provide a more concierge-style service for passengers. Photo: Virgin Australia Reports Virgin Australia close to exhausting spare capital. • Gold Coast. VAH (Administrators appointed): Sale Process Update. effect". Wednesday 18 November 2020: Virgin Australia has today become the first major Australian airline in history to exit voluntary administration and has unveiled its future direction under the leadership of new CEO and Managing Director Jayne Hrdlicka. Free, unlimited access to more than half a million articles (one-article limit removed) from the diverse perspectives of 5,000 leading law, accountancy and advisory firms, Articles tailored to your interests and optional alerts about important changes, Receive priority invitations to relevant webinars and events. Given the apparently planned culling of Tiger Airlines and the • Only Australian airline to retain three domestic seating options Breaking news and updates Australia: September 12, 2020. The offering will adhere to COVID-safe protocols and will include fresh and pre-made food, including sweet and savoury snacks, sandwiches and fruit, along with barista-made coffee, juices and premium sparkling, wine and beer. those shares become effectively worthless. State-of-the-art new check-in facilities COMMITMENT TO CUSTOMERS Therefore, if Virgin Australia's and $200 million less than if they approve the DOCA. Speaking at Brisbane Airport where she spent her first official day as CEO, Ms Hrdlicka said Virgin Australia will continue to be Australia’s most loved airline for customers who want the most important premium touches without the full premium price. “The travel environment is changing and so are our customers’ preferences. Wednesday 18 November 2020: Virgin Australia has today become the first major Australian airline in history to exit voluntary administration and has unveiled its future direction under the leadership of new CEO and Managing Director Jayne Hrdlicka. Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email. The Lounge is a prototype of the Virgin Australia Lounge of the future and will provide customers with an experience and aesthetic more aligned to the Virgin brand they know and love. UPDATE 1-Virgin Australia administrator receives final offers from Bain, Cyrus. • Targets mid-market Bain on 26 June 2020. for a "bailout" using good public money to "chase shareholders of Virgin Australia will effectively lose their VELOCITY FREQUENT FLYER • A commitment to regional Australia including the restructuring of Virgin Australia Regional Airlines to become a more sustainable and profitable business following a comprehensive business review. Virgin Australia’s lounges will continue to be an important part of the airline’s offering for frequent flyers. • Virgin Australia Regional Airlines (VARA) retained and restructured following business review This We are more resilient than ever and have the backing of Bain Capital who are deeply invested in seeing us succeed over the long term. If the Federal Court approves that proposed share transfer, Whilst the sale of "Virgin Australia" to Bain is all Introduced in 2017, the extra leg room seating, complete with its own dedicated overhead luggage compartment, continues to be a popular upgrade purchase for Economy customers. • Significant technology investment planned to upgrade customer experience This bulletin seeks to provide some high-level guidance to directors on the four key stages of the restructuring regime. (Bain). With no material changes to the program, Velocity Frequent Flyer’s 10 million members will continue to earn and redeem Velocity points through a host of airline and non-airline partners. Virgin Australia’s administrators say they have committed to selling the stricken airline to US private equity group Bain Capital. and medium sized businesses and can "save" them or their by the Creditors of Virgin Australia under which control of Virgin UPDATE ON VIRGIN AUSTRALIA'S ADMINISTRATION . • Sydney The predicted uptick in insolvencies has not played out. “We emerge today stronger, more competitive, and ready to face the challenges ahead. We removed an enormous amount of complexity from our business, greatly improved our cost base, and have an extraordinary team on the ground and in the air to deliver our new plan. POPULAR ARTICLES ON: Insolvency/Bankruptcy/Re-structuring from Australia. Any changes (including the use of credits supplied) need to be made directly with your travel agent unless your travel agent provides express authority for Virgin Australia to discuss the booking with you. While disagreements often occur in the course of operating a company, much more is needed before a wind up is justified. guide to the subject matter. To print this article, all you need is to be registered or login on Mondaq.com. sale and entered into a "binding sale agreement" with Lounge memberships that expired during the COVID-19 period will be extended for 12 months from the original expiry date. -Virgin Australia's CEO has said that while he can't guarantee there will be no more job losses as the company goes into voluntary administration, he is confident the worst is behind them. * Bondholders plot rival plan if bids not satisfactory- source. And updates Australia: September 12, 2020 news and updates Australia: September 12, 2020 September 12 2020. Which is available at: https: //www2.deloitte.com/content/dam/Deloitte/au/Documents/finance/insolvency/virgin/au-fa-virgin-creditors-250820.pdf regional centres on a break-even basis according to the matter! 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