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#956530 by flyingfox
01 Jul 2020, 11:23
FT reporting Virgin Group commits £200m of immediate funding for VS

https://www.ft.com/content/53b904dd-584 ... 0a83c2ce64

Bloomberg reporting VS favours investment by Davidson Kempner Capital Management so looking like things are coming together I hope the momentum continues;

https://www.bloomberg.com/news/articles ... escue-deal
#956549 by LREDI
04 Jul 2020, 21:30
If this all pays off then the VS Leadership team have done a tremendous job and it's good to see DL supporting. Also, clear to see no equity stake a risk from Virgin.

I've said before that VS will survive, what the future VS looks like remains to be seen.

COVID19 isn't going anywhere until we have (if we have) a vaccine, and with the situation in the US not getting any better - I'd watch VS quickly switch destinations to focus on growth - additional caribbean is a no brainer right now.
#956553 by Moley
05 Jul 2020, 19:56
It will also be interesting to see if they have picked up a full season of cruise charters to the Caribbean. With Thomas Cook gone, TUI weren't going to have capacity to pick them all up. Virgin picked some up as necessary last year but I expected them may go for a full season as the feedback on the VS operated chartered was positive.
#956555 by Dobbo
06 Jul 2020, 10:13
LREDI wrote:If this all pays off then the VS Leadership team have done a tremendous job and it's good to see DL supporting. Also, clear to see no equity stake a risk from Virgin.

I've said before that VS will survive, what the future VS looks like remains to be seen.

COVID19 isn't going anywhere until we have (if we have) a vaccine, and with the situation in the US not getting any better - I'd watch VS quickly switch destinations to focus on growth - additional caribbean is a no brainer right now.


I agree - they’ve done a superb job in what must be impossible circumstances. All you can ask is to do what is possible, and it feels like the stakeholders have done everything that is possible - if this deal is completed. It may yet not be enough to keep VS in business, but if it can emerge from this mess in a relatively healthy position it should be well placed to grow again in the coming years.

It’s obviously very bad for the VS employees who have lost their jobs - sadly that is unavoidable in many industries right now - but hopefully the wider economy can offer new opportunities to them in the immediate term and fees the demand that airlines rely open to create new opportunities moving forward.
#956575 by v1rotatev2
09 Jul 2020, 18:59
flyingfox wrote:The last piece of the jigsaw lies with card processing companies for £200m but they seem pretty confident a deal will be done.

https://news.sky.com/story/coronavirus- ... l-12024856


The card processing companies could be the hardest sell. All the other stakeholders have an incentive, but it is hard to see any upside for the card processing companies - as things stand they are largely protected from losing money by retaining funds. If they release the funds, they are still on the hook if VS can't honour the bookings but having forfeited the money to refund.
#956576 by FLYERZ
09 Jul 2020, 19:25
The main incentive as I see it for them would be the loss of a large customer. Whilst obviously you can bend over backwards for even if VS is a significant customer for the payment providers then causing VS to go bust would be shooting themselves in the foot. Equally if as the article suggests they are the final piece of the puzzle then doesn't look good if they effectively cause their demise - optically speaking anyway.
#956579 by LREDI
10 Jul 2020, 18:49
Depends on the risk Cardnet and First Data have against VS. I can see a deal being done here, there's too much to lose.
#956583 by flyingfox
11 Jul 2020, 21:01
Seems to be some pushback from one of the card processors with the other broadly agreeing to the rescue package.

https://news.sky.com/story/coronavirus- ... e-12026543

The Telegraph reporting that the deal could be rubber stamped by Tuesday, that VS will begin a phased resumption of flights in the coming weeks primarily focusing on the Caribbean and Israel ( no mention of the US which is not surprising ) and the deal covers all worse case scenarios including no resumption of some routes until 2021.

https://www.telegraph.co.uk/business/20 ... e-package/
#956590 by ColOrd
13 Jul 2020, 10:30
Looks like more positive news from First Data from The Times (https://www.thetimes.co.uk/article/virg ... -388352g52 - Behind a paywall)

The threat of collapse hanging over Virgin Atlantic is set to be lifted when it seals a £1.2 billion rescue deal.
Last night the airline was putting the finishing touches to agreements with three credit-card payment processors, First Data, Lloyds Bank’s Cardnet and American Express, to ensure passenger payments were released to the airline.
#956596 by Tigerlilly
13 Jul 2020, 12:26
ColOrd wrote:Looks like more positive news from First Data from The Times (https://www.thetimes.co.uk/article/virg ... -388352g52 - Behind a paywall)

The threat of collapse hanging over Virgin Atlantic is set to be lifted when it seals a £1.2 billion rescue deal.
Last night the airline was putting the finishing touches to agreements with three credit-card payment processors, First Data, Lloyds Bank’s Cardnet and American Express, to ensure passenger payments were released to the airline.

Bloody fantastic x
#956612 by getinjonathan
14 Jul 2020, 11:41
This is such amazing news! My god, I am so thrilled for so many friends at VS who'll be relieved at this news.
#956613 by mitchja
14 Jul 2020, 11:55
Whilst this is good news, let's not forget that 3150 people at VS are being made redundant (that's one third of their workforce).

Let's also hope VS will now for more forthcoming with refunds as they are still nearly bottom of the pile when it comes to refund timescales.
#956617 by gumshoe
14 Jul 2020, 13:51
Not bad, considering no-one can predict with any certainty when VS will be able to resume any semblance of a meaningful service.

It could easily be another six months. Maybe longer. And four times daily again to JFK could be years away.

Surely the first lesson to be learned from Covid for the reborn VS must be to abandon Craig Kreeger’s Delta UK strategy and broaden its network rather than focus 75% on the US?

And given that lucrative long-haul business travel is unlikely to bounce back any time soon, and with Thomas Cook now gone, maybe VS should look to start serving short and mid-haul leisure markets.

Even with an all widebody fleet might there be a future in flying to popular holiday destinations like the Canaries, Balearics, Malaga, Faro and Turkey - particularly given many of the normal Orlando crowd will be looking for safer alternatives? Or have Tui, Jet2 and easyJet got that market sewn up?
#956618 by Tigerlilly
14 Jul 2020, 14:34
Apparently the deal will secure them if they don’t fly for 6 months and then have a slow 2021. Fingers crossed USA gets a grip soon and normalise service can start to resume one again by the end of the year
#956621 by Murraymint
14 Jul 2020, 15:56
gumshoe wrote:Even with an all widebody fleet might there be a future in flying to popular holiday destinations like the Canaries, Balearics, Malaga, Faro and Turkey - particularly given many of the normal Orlando crowd will be looking for safer alternatives? Or have Tui, Jet2 and easyJet got that market sewn up?


From a purely selfish point of view, Cyprus would be good :-D :-D Not sure I can see that happening though.
#956624 by tontybear
14 Jul 2020, 16:31
Can people please NOT just post a link to an external source and post a couple of sentences of summary of the article / press release or whatever.
#956625 by starquake
14 Jul 2020, 18:21
Great news, happy they keeping flying.

Have to agree though, the current US focussed strategy under DL really has to change. Hoping VS start a BKK route personally as BA are DREADFUL on the route, and it's also relatively covid free.
Of course this is assuming the Thai government start letting UK people in by end of year.

I know I'd be flying on it providing we're let in this xmas, and such a route existed ;)
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