Half of Virgin’s staff face axe

Less that two weeks after Qantas announced that 6,000 jobs (20% of its workforce) would be cut, and a further 15,000 employees would remain stood down until further notice, Virgin Australia’s new owner, Bain Capital, is expected to axe around half of Virgin’s 9,000 strong workforce:

Pilots, crew and non-operational staff and workers at the now defunct TigerAir are facing the chop as Virgin’s new owner looks to downsize the domestic carrier.

The job losses are set to be formerly announced within the next fortnight.

Leith van Onselen

Comments

  1. they can all apply to some of those fake recovered jobseek job ads that never get filled

  2. GlendaFMEMBER

    S’OK, the total unemployment rate will still be 7.2%, nothing to see here,,,,

  3. Qantas will end the short term with 60% less staff. It might bounce back later.

    • with international borders closed and MEL to SYD corridor dead Qantas can sack 90% of workforce

  4. Pauly 📡MEMBER

    A friend I made on holidays was a pilot at Virgin. He’s now in Turkey working for one of their airlines. Probably going to have a much better life. I guess Turkey needs more fighter pilots for their adventures on their borders, so might be calling upon their airline pilots to return to service.

  5. So between Qantas and Virgin we’re looking at around 10000 redundancies of mostly well paid professionals.

    This can only cause house and share prices to zoom.

    • Reus's largeMEMBER

      Lower teh rates and open teh gates, oh noooes gate are closed and the rates are at rock bottom already, the dust is clearing from under the coyote …..

  6. Something smells rather rank with this whole Virgin Liquidation.
    The Employees are getting shafted
    The Unsecured bond holders are getting shafted
    Unsecured Creditors are getting shafted
    Secured Creditors (primarily Airplane companies)are having their secured assets sold
    All done to please some secured bond holders and a Vulture Capitalist.

    I’ve seen a lot of liquidations but none as F’ed up as this one. It’s understandable that nobody is going to bid top dollar at the moment for anything airline related BUT you still need to maintain appearances especially if the whole thing is a stichup.
    I wouldn’t be at all surprised to see this challenged in the US courts.

    • Hadron CollisionMEMBER

      Quick update for the TravelBank credit holders

      I have instigated one chargeback and had a conditional refund

      Have instigated a second one on second card so will see

      Probably best to move on that ASAP if anyone in same situation.

    • DominicMEMBER

      Looks like a regulation restructuring to me:
      – equity holders fuct
      – unsecured creditors fuct
      – some of the leases have been transferred to the new business, some have not.

      Frankly I don’t know why any carnt would buy Virgin right now. Unless they were betting on a huge economic comeback and re-opening. Not sure what Bain are paying but they could lose the lot here. Depends how much debt they can stuff into the new company.

        • DominicMEMBER

          I’m sure that’s their goal but the risk is that they don’t make it that far.

      • It all really depends on how you see this as a restructure
        Lets say Bain and the secured Bond holders maybe know each other then they have nothing to loose by bidding less then the value of the secured bonds.
        For the Secured Bond holders their best bet at the moment is to lay claim to as many of the assets as they possibly can, because that’s all that is really left.
        A liquidation is suppose to consider more than just the relative seniority of the bonds in determining the best restructure plan. the plan should do this if for no other reason then to ensure that the restructure proceeds smoothly without unnecessary litigation. Sometimes when you just unnecessarily shaft people they decide to return the favour and that’s a game which nobody really wins.

  7. Pilots would make good bus, taxi and truck drivers. Im sure Scumo will point out that there are unfilled shifts going.