Bain billions keep Virgin aloft
Bain Capital plans to inject as much as $600m in cash into Virgin to keep it running as it works with administrator to help the airline ramp up operations.
Bain Capital plans to inject as much as $600m in cash into Virgin to keep it running as it works with administrator to help the airline ramp up operations.
Virgin Australia is to be resurrected by US firm Bain Capital into a leaner airline with fares to suit economy travellers.
Qantas shares have borne the brunt of investor anxiety a day after the airline unveiled its brutal COVID-19 recovery plan.
Bain Capital has signed a deal to buy Virgin Australia hours after rival Cyrus made the shock announcement it was withdrawing its bid.
Qantas is on track to make a modest profit in 2020 as the airline embarks on a brutal cost reduction plan.
Qantas had big dreams, but now it needs to cut a mind-boggling $15bn in the next three years and $1bn every year after that.
Qantas will slash 20 per cent of its workforce, or a total of 6000 jobs, with international flights not expected to resume for 12 months.
The Virgin Australia sale process has been thrown into a spin by an eleventh-hour $1bn rescue proposal by its Singapore government-backed bond holders.
The US firms vying to become Virgin Australia’s new owner are pulling out all stops for employees as decision day looms.
Virgin’s bond holders propose pumping an upfront $800m into the embattled airline under a plan that could halt its sale.
Original URL: https://www.theaustralian.com.au/author/robyn-ironside/page/197