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Bain won't do an LCC. They will do a hybrid, they have been clear on that.

The way things are going there will be a third airline soon. Some of the entities supporting the other bidders are quite likely to proceed to set up another full service airline based In Melbourne. Don't have to worry about paying out redundancies, creditor negotiations, other stuff.
 

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Changes were happening, but they were too recent to have much impact. While VA may have been able to survive on the track without Covid, they likely would have been able to ride out COVID if they weren't so poorly run over the last 10 years. Their death was ultimately poorly timed a combination of both.
Well they're in good company. You can add quite a few airlines to that list. Lufthansa, BA, Singapore Airlines, Air NZ. Were they all too poorly run to ride out Covid without the need for help? If their respective governments hadn't provided emergency funding they would be in administration too.
 

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Bain won't do an LCC. They will do a hybrid, they have been clear on that.

The way things are going there will be a third airline soon. Some of the entities supporting the other bidders are quite likely to proceed to set up another full service airline based In Melbourne. Don't have to worry about paying out redundancies, creditor negotiations, other stuff.
Source on that?

If a 3rd airline emerges my money would be on REX and/or Alliance rather than a brand new start up.

I can't see anyone starting a full service airline from scratch in the current climate, based in Melbourne or Timbuktu.

Think about it. Qantas and Jetstar will be in a stronger position, Virgin will be reborn one way or another, REX and Alliance are already established and able to expand. All at the same time demand is low.
 

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Source on that?

If a 3rd airline emerges my money would be on REX and/or Alliance rather than a brand new start up.

I can't see anyone starting a full service airline from scratch in the current climate, based in Melbourne or Timbuktu.

Think about it. Qantas and Jetstar will be in a stronger position, Virgin will be reborn one way or another, REX and Alliance are already established and able to expand. All at the same time demand is low.
The best time to start a business in a sector is when a sector is completely stuffed. You get licences, labour and equipment at fire sale prices. With a clean sheet of paper you get to fashion your business to the new demand profile, not like your competitors who have legacy issues. This rule applies to all business sectors.
 

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The best time to start a business in a sector is when a sector is completely stuffed. You get licences, labour and equipment at fire sale prices. With a clean sheet of paper you get to fashion your business to the new demand profile, not like your competitors who have legacy issues. This rule applies to all business sectors.
That can be true in some circumstances but it's most certainly not a 'rule'.

Also existing competitors have legacy advantages, not just issues.
 

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Well they're in good company. You can add quite a few airlines to that list. Lufthansa, BA, Singapore Airlines, Air NZ. Were they all too poorly run to ride out Covid without the need for help? If their respective governments hadn't provided emergency funding they would be in administration too.
Where did I say anything about not needing help? If Virgin was run like those other airlines, the government would have been in a much better position to offer them bridging loans/stakes like the other airlines you mentioned.

For an airline of its size and revenue, Virgin had massive debts. If the government had invested, it likely would have been in the exact same situation without a solid income stream.
 

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Where did I say anything about not needing help? .
You're splitting hairs here. Saying they 'would have been able to ride it out' certainly implies 'without help'.

Also there is no direct government funding offered to any Australian airline (unlike the airlines I listed) so it's a bit of a moot point for VA.
 
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